Immobiliare Grande Distribuzione SIIQ S.p.A. · MIL:IGD
Immobiliare Grande Distribuzione SIIQ — IGD SIIQ — Non-Deal Roadshow (September 2018)
59 slides from Immobiliare Grande Distribuzione SIIQ's roadshow presentation, September 2018
Slide 1: Road show Presentation 1H2018 Results
Road show Presentation 1H2018 Results Centroluna -Sarzana
Slide 2: 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 Act of 1933, as amended (the “Securities Act”), or in Aust
Slide 3: Index
Index 1. INTRODUCTION TO IGD 4 2. OPERATING DATA 9 3. 1H2018 RESULTS 19 4. SUSTAINABILITY 36 5. APPENDIX 51 3
Slide 4: 1. Introduction to IGD
1. Introduction to IGD Conè - Conegliano
Slide 5: A leading player in the Italian retail real estate sector
A leading player in the Italian retail real estate sector Quick facts and figures (1H 2018) 27 shopping malls 25 hyper / 14 shopping Development supermarkets in Italy * in Italy >€2.4bn portfolio value malls in Romania & others (2) 63.4% of value 6.5% of value 3.6% of value 26,6% of value 5.5% EPRA
Slide 6: Distinctive positioning in the Italian retail property sector
Distinctive positioning in the Italian retail property sector Business model focused on locally dominant shopping centres, proactive asset management and well defined strategic guidelines Large portfolio of retail property assets with a strong customer base 1 generating sound and visible revenues an
Slide 7: A company inspired by the best market standards
A company inspired by the best market standards Solid management team, best-in-class corporate governance and attention to reporting transparency and sustainability IGD shareholding structure (1) Solid management team Consolidated management team in place since 2009 Mr. Albertini (CEO) is a member o
Slide 8: The new Board of Directors
The new Board of Directors On 1 June 2018 the Sharheolders Meeting appointed the new Board of Directors (in office until the FY2020 results approval) Chairman and Chief Executive Officer confirmed Number of directors further reduced (from 13 to 11) Independence - professional competence - inte
Slide 9: 2. Operating data
2. Operating data Esp - Ravenna
Slide 10: A cluster of retail assets dominant in their catchment area
A cluster of retail assets dominant in their catchment area IGD main NORTHERN ITALY Italian Assets CENTRO SARCA ESP LE MAIOLICHE CENTRO BORGO PUNTADIFERRO CENTRO LAME (2) CENTRO LEONARDO (2) SESTO S. GIOVANNI (MI) RAVENNA FAENZA (RA) BOLOGNA FORLI’ BOLOGNA IMOLA (BO) CONÈ CENTRO PIAVE (1) CLODÌ CENT
Slide 11: Italian Portfolio: hypermarkets and shopping malls
Italian Portfolio: hypermarkets and shopping malls TENANTS OF 27 SHOPPING MALLS 25 HYPERMARKETS HYPERMARKETS CENTRO D'ABRUZZO -Pescara CENTRO D'ABRUZZO -Pescara Coop Alleanza 3.0 CLODI' - Chioggia CLODI' - Chioggia Coop Alleanza 3.0 PORTO GRANDE - Porto d'Ascoli (AP) PORTO GRANDE - Porto d'Ascoli (A
Slide 12: Property portfolio focused on wealthier Italian regions
Property portfolio focused on wealthier Italian regions The bulk of IGD’s portfolio is focused on selected regions featured by a solid economic environment 60 properties in 12 regions (93.5% of market value) > 80% of value of Italian portfolio concentrated in Property portfolio as 30/06/2018 – inclu
Slide 13: A performing and effective portfolio
A performing and effective portfolio (data at 30/06/2018) Resilience in occupancy 2014 2015 2016 2017 1H2018 96.2% 97.5% Occupancy rate always high Average Italy 97.1% thanks to the restyling/ 86.4% extension/remodeling Romania activities Flexibility and adaptability m² Average mall dimension: Avera
Slide 14: A consistent evolution of our portfolio
A consistent evolution of our portfolio… Katanè Porte di Napoli € 2,228.2mn € 2,428.8mn other 4% (€87.4 mn) other 4% Romania 6% (€89.9 mn) (€157.2 mn) Tiburtino Romania 7% (€159.5 mn) SMALL 12.9% ESP +9.0% Malls 63% Malls 60% (€1.539,1 mn) KEY puntadiferro (€1.331,6 mn) MEDIUM 53.9% 33.2% Conè C. Sa
Slide 15: ...with a growing value
...with a growing value ∆% Gross Initial Net Initial Yield Financial FV2017 1H2018 ∆% Net Initial Yield Like for Like Yield topped up occupancy Malls Italy 1,331.60 1,539.07 + 15.58% -0.26% + 6.3% 95.9% Tot. Italy 5.5% 5.6% 97.1% Hypermarkets Italy 647.20 645.14 -0.32% -0.32% + 6.2% 100.0% Romania 1
Slide 16: NNNAV
NNNAV 31/12/2017* € per share 30/06/2018 ∆ Restated NAV 11.87 11.65 (-1.9%) NNNAV 11.40 11.25 (-1.3%) Total effect of dividend distributed in June -0.02 -0.50 0.35 0.02 11.40 11.25 EPRA NNNAV 31 Dec Dividends Change in debt Fair FFO Assets Fair Value EPRA NNNAV 30 Jun 2017 Restated value and other 2
Slide 17: Contracts in Italy and Romania
Contracts in Italy and Romania (data at 30/06/2018) Expiry date of mall and hypermarket contracts (% value) N 24 Italy No. of contracts : 1,443 99.0% N 919 Average residual maturity Hypermarkets 7.3 years 69.1% Malls 4.5 years N 96 N 246 N 182 N1 Malls Hyper/Supermarkets 14.5% 10.1% 6.2% 1.0% 2H2018
Slide 18: Key tenants 1H2018
Key tenants 1H2018 Top 10 Tenants Malls Top 10 Tenants Malls Italy Romania Product Product TOP 10 Tenant Turnover impact Contracts TOP 10 Tenant Turnover impact Contracts category category food 10.0% 11 clothing 3.1% 14 clothing 7.7% 6 clothing 2.7% 11 clothing 4.0% 11 clothing 2.4% 11 grocery 2.6%
Slide 19: 3. 1H2018 Results
3. 1H2018 Results puntadiferro -Forlì
Slide 20: Highlights 1H2018
Highlights 1H2018 €74.1 mn €60.7 mn Rental Income Net Rental Income +8.4% +9.9% €55.6 mn €34.8 mn Core business Ebitda Group Net Profit +11.3% -28.9% Margin 72.1% +230bps Margin from Freehold 80.6% (+110 bps) €38.9€mn Funds From Operations (FFO) +22% 20
Slide 21: 2017 of growth and strong start of 2018
2017 of growth and strong start of 2018 FY2016 FY2017 1H 2017 1H 2018 Revenues €131.1MM €138.9MM +5.6% €68.4MM €74.1MM +8.4% • Rental Income • Net Rental Income €105.2MM €111.9MM +6.4% €55.2MM €60.7MM +9.9% EBITDA • EBITDA (Core Business) €94.9MM €101.2MM +6.7% €50.0MM €55.6MM +11.3% • EBITDA Margin
Slide 22: Macroeconomic context updates 1H2018
Macroeconomic context updates 1H2018 ITALY ROMANIA Economy still growing but at a slower pace Unemployment and consumer confidence are Slight decrease compared to 2017 but growth better than the 4 years average remains strong 2.0% 13.0% 120 1.5% 1.1%/1.2% 115 1.0% 1.0% 0.9% 6.7% 12.0% 110 0.1% 0.0%
Slide 23: Italy 1H operating performance
Italy 1H operating performance 97.1% occupancy increasing vs FY17 (96.8%) +3.8 % tenant sales incl. extensions + 1.4% average upside 101 signed contracts of which 34 turnover and 67 renewals ……. 2.4% Rotation rate % new tenants on total contracts Le Porte di Napoli 23
Slide 24: Romania 1H operating performance
Romania 1H operating performance 97. 5% occupancy Increasing vs FY17 (96.4%) +1.1% average upside on renewals 231 signed contracts of which 111 turnover and 120 renewals 18.4% Rotation rate % new tenants on total contracts Alexandria 24
Slide 25: Income and net rental income 1H2018
Income and net rental income 1H2018 (€mn) ITALY ROMANIA Rental income beakdown +€5.7mn +8.4% ROMANIA +1.4% +4.7% 6.5% 0.2 4.6 OTHER 0.9 HYPERMARKET 0.5% 27.0% Tot. Rental 74.1 income 68.4 €74.1 mn MALLS 66.0% Rental Income 1H2017 Change LfL Italy Non-lfl Italy (ESP extension, Change Lfl Romania Rent
Slide 26: Commercial activity: fields of action
Commercial activity: 2 fields of action 1. Trend and 2. Tenant engagement innovation Greater attention to trends and understanding Mapic Italy consumers habits. Insertion of high Lockers have been performing brands that placed in 2 Shopping 133 meetings of which: led to good results in Centers thank
Slide 27: Integrated marketing approach
Integrated marketing approach In the first half of 2018 the marketing planning cycle is completed Annual marketing Events plans realisation Monitoring • Half yearly, on the Plan’s targets • Periodically, through customer and event satisfaction surveys 27
Slide 28: Acquisition of malls and retail park from Eurocommercial Properties
18 April 2018: acquistion of 4 malls and 1 retail park from Eurocommercial Properties… ACQUISITION’S RATIONALE Mall Mall CENTRO LEONARDO - Imola CENTRO LUNA – Sarzana Dominant malls in their catchment area Excellent operating performances Attractive Initial yield Mall + Retail Park Mall LA FAV
Slide 29: Main points about the transaction with Eurocommercial Properties
Main points about the transaction with Eurocommercial Properties An accretive transaction on a strategic portfolio to foster IGD’s growth and value creation story Transaction with a prime listed counterpart and valuation in line with market value IGD’s enhanced position as the Italian leading shoppi
Slide 30: Update on the pipeline
Update on the pipeline Parte retail Parte residenzale e retail OFFICINE STORICHE: heart of the retail initiative 03/04/2018 Approved variation by the City Council. Work in progress Sqm allocated to retail: > 15,000 sqm; 43 flats seafront PIAZZA MAZZINI Sale of the residential area almost completed 6
Slide 31: Other news: spaces remodeling
Other news: spaces remodeling… Following the success of Le Porte di Napoli and Città delle Stelle the strategy of hypermarket remodeling to favor a mall extension continues Remodeling and Restyling at Le Fonti del Corallo shopping center Facade Mall Mall Hypermarket reduction and creation of new uni
Slide 32: ...and restyling
…and restyling CASILINO Internal and external restyling Architectural restyling of the external facades and internal External facades - pre and post areas coordinated with (voluntary) intervention for seismic improvement at the ground floor and first floor. 1°phase: Ground floor, facades and externa
Slide 33: Financial structure
Financial structure Loan to Value 57.1% 50% Thanks to the results of the liability management LTV range from BP 48.0% 48.3% activities carried out in 2017 and the end or decrease 47.1% 47.4% of some Irs notional, Financial management 45% 46.4% decreased by €1.5mn. Moreover, financial ratios improved
Slide 34: Debt maturity 1H2018
Debt maturity 1H2018 Debt break down Debt maturity Average residual maturity of long term debt: 4 years Net Debt at 30/06/2018 €1,132.1 mn 6/9/2018- IGD AND BNP PARIBAS ITALIAN BRANCH EXECUTED A “COMMITMENT AND UNDERWRITING LETTER” RELATING TO A FACILITY OF L.T. EURO 200 MILLION* 2.5% 1081,7 5y 2.65
Slide 35: The Funds From Operations (FFO) continues to grow
The Funds From Operations (FFO) continues to grow Yearly FFO Evolution 1H 2018 FFO Bridge €mln €mln +20% +21.7% +22.0% +18.9% 1.5 -0.1 +28.5% 5.6 38.9 31.9 35.1 45.3 53.9 65.6 FFO 1H_2017 Change in core business Change in financial Change in taxes and other FFO 1H_2018 2014 2015 2016 2017 2018 Ebitd
Slide 36: 4. Sustainability
4. Sustainability puntadiferro -Forlì
Slide 37: Sustainability: news of the first half 2018
Sustainability: news of the first half 2018 ISO 14001 ISO37001 EPRA SUSTAINABILITY 3 more centers certified. Winmarkt is the first Romanian COMMITTEE 17 the total number of IGD centers company to obtan the anti corruption First IGD participation certified certification (23 May, Bruxelles) BREEAM-IN
Slide 38: IGD Sustainability
IGD Sustainability Starting from 2011, IGD decided to take a structured path towards Social Responsibility, considering: • Internal reason: the belief that adopting sustainability criteria in the real estate sector is a way to pursue a lasting growth over time; • External reason: the will to meet th
Slide 39: From new materiality matrix to Becoming great
From new materiality matrix to «Becoming great» The 13 material issues were aggregated in the acronym (Becoming) G.R.E.A.T., as a testimony to IGD commitment to constantly grow in “Green, Responsible, Ethical, Attractive, Together” perspective to its stakeholder GREEN RESPONSIBLE ETHICAL ATTRACTIVE
Slide 40: SDGs for IGD
SDGs for IGD GOOD HEALTH QUALITY GENDER AND WELL-BEING EDUCATION EQUALITY as AFFORDABLE AND DECENT WORK AND INDUSTRY, INNOVATION CLEAN ENERGY ECONOMIC GROWTH AND INFRASTRUCTURE SUSTAINABLE CITIES Tivo couunires ieee to AND PRODUCTION alfa | CO | G> PEACI D ANDSTRONG ay, DSTRONG s % Sw Taw 1 THE GLOB
Slide 41: Green
————_=— Loscomnenciale
Slide 42: Environmental impact of Shopping Centres
Shopping Centres equipped with 5 photovoltaic systems 15 Shopping Centres equipped with LED lighting systems The Shopping Centres can have an impact on the Electricity from renewable sources in all environment due to: 1. the large amount of energy they consume 100% Shopping Centres 2. the road traff
Slide 43: Becoming g.r.e.a.t.
Becoming g.re.at. MAI DIMENTICATO LA PAZSWORD e rt isiQ
Slide 44: Responsible behaviour towards people
IGD undertakes to behave in a responsible manner 95,5% Permanent contracts (Italy and Romania_2017) towards people. • With its employees it is committed to fostering “good employment”, where continuous skills 96,6% Employees trained during the year (Italy and Romania_2017) development and the promot
Slide 45: Ethical
Slide 46: Governance and ethics
Of least represented gender in the Board of 36% Directors • IGD adopted a governance system aligned with 7 on 11 Independent Directors the best practices of listed companies. • The Company undertakes to operate ethically and to ensure that all the necessary safeguard 3 Stars obtained in the Legality
Slide 47: Attractive
Slide 48: Attractive spaces to be lived in
40% New brands out of total turnover Over Total € spent annually by shopping center’s IGD’s commitment to ensure its Shopping Centres are, and remain, attractive, involves: 3 million consortiums, on average, on the organisation of events • A continuous enhancement of the areas, both from an architec
Slide 49: Together
Slide 50: Stakeholder engagement and local community
IGD enters into contact with a variety of stakeholders, 1 in 3 The local events on the total of those organised in IGD Centres both at institutional level and at a more local one. • It has established a continuous dialogue with these in order to understand their needs and 16.562 Number of employees
Slide 51: 6. Appendix
6. Appendix Katanè - Catania
Slide 52: IGD top management
IGD top management ELIO GASPERONI (1953) Chairman CLAUDIO ALBERTINI (1958) Chief Executive Officer Chairman of IGD's Board since April 2017 Appointed in May 2009 Vice Chairman of Coop Alleanza Board member at IGD since 2006 Board member of IGD since 2015 More than 20 years of experience with the Uni
Slide 53: Consolidated Income Statement 1H2018
Consolidated Income Statement 1H2018 (a) (b) D GROUP CONSOLIDATED CONS_2017 CONS_2018 (b)/(a) Revenues from freehold rental activities 62.1 67.8 9.2% Revenues from leasehold rental activities 6.3 6.3 0.0% Total income from rental activities 68.4 74.1 8.4% Rents and payable leases -5.1 -5.1 0.5% Dire
Slide 54: Funds from Operations (FFO)
Funds from Operations (FFO) €38.9 mn (+22%) Funds from Operations 1H_2017 1H_2018 D vs cons 2017 D% Core business EBITDA 49,982 55,637 5,655 11.3% Adj Financial management -17,548 -16,046 1,502 -8.6% Adj extraordinary management 0 0 0 n.a. Adj current taxes for the period -563 -700 -137 24.3% FFO 31
Slide 55: Epra NNNAV
Epra NNNAV 31-Dec-17 31/12/2017 Restated (a) 30/06/2018 (b) D% (a vs b) NNNAV Calculation €'000 € p.s. €'000 € p.s. €'000 € p.s. Total shares* 81,304,563 110,341,903 110,341,903 1) Group shareholders' equity 1,115,753 13.72 1,263,014 11.45 1,240,190 11.24 -1.8% Excludes Fair Value of financial instr
Slide 56: More financial highlights
More financial highlights FY2017 30/06/2018 SHARE OF MEDIUM/LONG TERM DEBT 91.1% 80.1% * HEDGING ON LONG TERM DEBT + BOND 94.8% 87.1% * UNCOMMITTED CREDIT LINES GRANTED €276 mn €286 mn UNCOMMITTED CREDIT LINES AVAILABLE €225.6 mn €231 mn COMMITTED CREDIT LINES GRANTED AND €60 mn €60 mn AVAILABLE UNE
Slide 57: Reclassified Balance Sheet 1H2018
Reclassified Balance Sheet 1H2018 Sources - Use of funds 31/12/2017 30/06/2018 D D% Fixed assets 2,157,176 2,358,369 201,193 9.3% Assets under construction 40,466 39,137 -1,329 -3.3% Other non-current assets 23,245 23,044 -201 -0.9% Other non-current liabilities -29,082 -27,375 1,707 -5.9% NWC 28,76
Slide 58: Main lease terms
Main lease terms Italian Shopping Malls Italian Hypermarkets Romanian Shopping Malls Main lease terms Main lease terms Main lease terms Average maturity: Average maturity: Average maturity: Lease agreement (space only): 6 to 18 years 2 years for local tenants 6 years (+ 6 years) (with tacit renewal
Slide 59: Investor relations contacts
Claudia Contarini, IR 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 federica.pivetti@gruppoigd.it to @igdSIIQ 59