Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — Non-Deal Roadshow (May 2016)
67 slides from Immobiliare Grande Distribuzione Siiq's roadshow presentation, May 2016
Slide 1: Road Show Presentation
Road Show Presentation May 2016
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 Act of 1933, as amended (the “Securities Act”),
Slide 3: Index
3 Index INTRODUCTION TO THE IGD GROUP 4 IGD’S RESULTS AS AT 31/03/2016 24 ATTACHMENTS – 1Q 2016 39 UPDATE OF BUSINESS PLAN 2016-2018 45 ATTACHMENTS – BUSINESS PLAN 2016-2018 61 May 2016
Slide 4: Introduction to the IGD group
Introduction to the IGD group
Slide 5: IGD is one of the main players in the Italian retail real estate sector
5 IGD is one of the main player in the Italian retail real estate sector: develops and manages shopping centers across the country and has a significant presence in retail distribution in Romania Presence throughout the territory, capital strength, processing power, control and management of all pha
Slide 6: Our business model
6 Our business model A careful merchandising mix, marketing activity adapted to each DIRECT MANAGEMENT context and various customer related services and careful OF THE SHOPPING CENTRES attention paid to tenants’ needs MEDIUM SIZED AND EASILY In line with the geographical structure of Italy which is
Slide 7: IGD: A cluster of retail assets dominant in their catchment area
7 IGD: A cluster of retail assets dominant in their catchment area IGD Principal Italian Assets NORTHERN ITALY MONDOVICINO SHOPPING CENTER I BRICCHI CENTRO SARCA GRAN RONDÒ MILLENNIUM GALLERY CONÈ & RETAIL PARK ISOLA D'ASTI (AT) SESTO S. GIOVANNI (MI) CREMA (CR) ROVERETO (TN) CONEGLIANO (TV) MONDOVÌ
Slide 8: IGD footprint
8 IGD footprint… Trentino Alto Adige Veneto 5 Millennium Gallery Conè 6 Rovereto (TN) Conegliano (TV) 57 Real Estate Units in 11 Lombardia Centro Piave 3 Centro Sarca 7 San Donà Di Piave (VE) Italian Regions including: Sesto S. Giovanni (NI) 1 Clodì 4 Gran Rondo 8 Chioggia (VE) • 21 malls and retail
Slide 9: Benefits from strong gearing in regions with GDP per capita above European average
…benefits from strong gearing in regions with GDP per capita 9 above European average 92% of IGD portfolio value located in Italy, with strong gearing on the wealthy Northern regions, benefitting of GDP per capita well above EU average GDP per capita(1) 92% of portfolio located in Italy… (EU 28 = 10
Slide 10: Portfolio characteristics
10 Portfolio characteristics ITALY ROMANIA HYPERMARKET MALLS AVERAGE MALLS Financial Occupancy 100% 95.30% 96.85% 93.90% Market value as at 31 December 2015 €mn 632.93 1,136.81 167.30 Weight on the total value of the portfolio 30.4% 54.6% 8.0% Compounded average yield of total portfolio 6.34% 6.33%
Slide 11: Market Value evolution
11 Market Value evolution € mn Mkt Value Mkt Value 31/12/2014 31/12/2015 Asset Rotation Malls + Hypermarkets + Other Italy 1,579.08 1,775.73 City Center (Piazza Mazzini) 56,50 23.70 Total income related portofolio ITALY 1,635.58 1,799.43 Acquisition Total income related portofolio ROMANIA 175.30 170
Slide 12: Italian and Romanian Portfolio
12 Italian and Romanian Portfolio MARKET VALUE BREAKDOWN OF IGD’S PORTFOLIO BY BREAKDOWN OF THE PORTFOLIO’S APPRAISALS TYPE OF ASSET 1,1% 8,2% 0,3% 4,1% 1,3% 20% 30,4% 37% 43% 54,6% HYPER/SUPERMARKETS MALLS CBRE REAG CUSHMAN&WAKEFIELD LANDS OTHER PORTA A MARE WINMARKT CITY CENTER May 2016
Slide 13: Italian Portfolio: hypermarkets and shopping malls
13 Italian Portfolio: hypermarkets and shopping malls (as at 31/03/2016) TENANTS OF 21 SHOPPING MALLS 25 HYPERMARKETS HYPERMARKETS CENTRO D'ABRUZZO -Pescara CENTRO D'ABRUZZO -Pescara Coop Adriatica CLODI' - Chioggia CLODI' - Chioggia Coop Adriatica PORTO GRANDE - Porto d'Ascoli (AP) PORTO GRANDE - P
Slide 14: EPRA NNNAV per share
14 EPRA NNNAV per share 31-Dec-14 31-Dec-15 NNNAV Calculation €'000 € p.s. €'000 € p.s. Total number of shares 756,356,289 813,045,631 1) Group's net equity 950,229 1.26 1,022,054 1.26 Exclude Fair value of financial instruments 43,912 34,990 Deferred taxes 18,093 19,917 Goodwill as a result of defe
Slide 15: Main lease terms
15 Main lease terms Italian Shopping Malls Italian Hypermarkets Romanian Shopping Malls Main lease terms: Main lease terms: Main lease terms: Average maturity: Average maturity: 6 to 18 years (+ 6 years) Average maturity: Lease agreement (only space): 6 years Rents indexation: 75% of CPI 2 years for
Slide 16: SIIQ regime: main features
16 SIIQ regime: main features SIIQ STATUS FOR IGD SINCE 1 JANUARY 2008 At least 80% of total assets must be rental asset KEY PARAMETERS At least 80% of total positive components of P&L must be rental income (excluding change in FV) Largest shareholder stake ≤ 60% (vs. previous 51%) SHAREHOLDING LIMI
Slide 17: IGD's shareholders
17 IGD’s shareholders IGD IS LISTED ON THE STAR SEGMENT OF BORSA ITALIANA TOTAL SHARES 813,045,631 SHARE CAPITAL € 599,760,278.16 5,39% Coop Alleanza 3.0 Unicoop Tirreno 40,92% 41,66% Free Float Market Quantum Strategic 47.5% Partners Ltd 12,03% MARKET SHAREHOLDING REFLECTED IN A GOVERNANCE STRUCTUR
Slide 18: IGD Governance
18 IGD Governance Composition of the current Board of Directors Vice Chairman IGD’s governance has been in line Chairman Gilberto Fernando CEO with the criteria of the Self Regulatory Coffari Claudio Pellegrini Code of Italian Stock Exchange since Albertini the listing. Caporioni Leonardo Gasperoni
Slide 19: IGD top management
19 IGD top management GILBERTO COFFARI (1946) CLAUDIO ALBERTINI (1958) Chairman Chief Executive Officer Chairman of IGD's Board since its creation in 2000 Appointed in May 2009 Chairman of Coop Adriatica from 2006 to 2011 Board member at IGD since 2006 Acted as Director and Chairman for a number of
Slide 20: World (1/2)
20 WORLD (1/2) 7 LEGAL ENTITIES THROUGHOUT ITALY Emilia Romagna, Lombardia, Trentino, Veneto, Friuli Venezia Giulia, Marche, Abruzzo, Puglia, Basilicata Toscana, Lazio, Umbria, Campania Lombardia, Sicilia Piemonte Liguria, Piemonte Toscana Toscana, Umbria, Abruzzo Regions covered by Coop From 1st Ja
Slide 21: World (2/2)
21 WORLD (2/2) Data as at 31/12/2014(1) Market share in Italy: 15% Turnover : ~ 12,4 bn € N° of points of sale: ~ 1,200 Employees: ~ 54,600 Members: ~ 8.5 million COOP PRODUCTS AND SERVICES Goods with Coop brand: Market share > 26% (+1% vs 2013) Coop Salute: 122 points of sale Coop Voce: 1.4 million
Slide 22: From January 2016 Coop Alleanza 3.0
22 From 1 January 2016 COOP ALLEANZA 3.0 Data as at 31/12/2014(1) By merging of Coop Adriatica, Coop Estense and Coop Consumatori Nordest Revenues : ~ 4 bn € N° of points of sale: ~419 (of which 56 hypermarkets) Employees: ~ 22,000 Members: ~ 2.7 million Deposits from members: ~ 4.5 € billion STRATE
Slide 23: Unicoop Tirreno
23 Unicoop Tirreno Data as at 31/12/2014(1) Revenues: ~ 1 bn € N° of points of sale: 112 Employees: ~ 4,300 Members: ~ 965,000 Deposits from members: ~ 1.2 bn € STRATEGIC INVESTMENTS IN LISTED COMPANIES UNIPOL GRUPPO FINANZIARIO (Insurance and banking) IGD SIIQ SPA (1) Source: Unicoop Tirreno Financ
Slide 24: Results presentation as at 31/03/2016
Results presentation as at 31/03/2016
Slide 25: Highlights 1/2
25 Highlights 1/2 €33.8 mn Core business revenues (+8.7% vs 31/03/2015) EBITDA €23.6 mn •EBITDA (core business) (+12.5% vs 31/03/2015) 69.9% •EBITDA margin (core business) ( +2.4pts. vs 31/03/2015) 79.2% •EBITDA margin from Freehold ( +1.7pts. vs 31/03/2015) €12.7 mn Group Net Profit (+37.4% vs 31/0
Slide 26: Highlights 2/2
26 Highlights 2/2 FINANCIAL OCCUPANCY at 31/03/2016 97.2% •ITALY (96.9% at 31/12/2015) •ROMANIA 94.2% (93.9% at 31/12/2015) Net Debt €984.2 (€984.8 at 31/12/2015) Gearing ratio €0.92 (vs €0.93 at 31/12/2015) 47.3% Loan to value (vs 47.3% at 31/12/2015) May 2016
Slide 27: Economic and financial results
ECONOMIC AND FINANCIAL RESULTS
Slide 28: Revenues
28 Revenues BREAKDOWN OF RENTAL REVENUES BY TYPE TOTAL REVENUES (€/000) OF ASSET 31,400 Total 33,862 Revenues +7.8% 1.1% 106 6.6% 76 1,269 258 1,264 30.7% Core business 32,487 +8.7% 29,802 61.6% CONS 2015 CONS 2016 Core business revenues from rental act. MALLS HYPER ROMANIA OTHER Revenues from servi
Slide 29: Rental income drivers
29 Rental income drivers (€/000) ITALY ROMANIA +1.6% +2.3% +9.1% 195 30 49 2,407 424 32,593 29,878 Revenues from rental act. LFL Italy Acquis/Exten/Restyling Disposal+other "Porta a Mare" change LFL Romania Revenues from rental act. 1Q_2015 1Q_2016 LFL: Malls +2.1% Higher revenues on a non Negative
Slide 30: Operating cost and financial management
30 Operating cost and financial management CORE BUSINESS G&A EXPENSES AND DIRECT COSTS (€ 000) Lower weight of operating costs on 2,517 - 2.2% 2,463 Revenues Core Business Ebidta margin G&A expenses (69.9%) is growing: +150bps + 1.7% direct costs 7,568 7,700 Ebitda margin from Freehold: 79.2 % 1Q201
Slide 31: Group Net Profit: €12.7 MN (+37.4%)
31 Group Net Profit: €12.7 MN (+37.4%) NET PROFIT EVOLUTION (€ 000) 988 -12 -14 24 -154 2,613 12,659 9,215 Group Net Profit Change in core Change in Ebitda Change in Change in financial Change in taxes Change in Group Net Profit 31/03/2015 business Ebitda "Porta a Mare" depreciations, and extraordin
Slide 32: Funds From Operations
32 Funds From Operations Funds from Operations (core business) 31/03/2015 31/03/2016 D D% Pre-tax profit 10,003 13,396 3,393 33.92% Depreciations and other provisions 339 328 -12 -3.26% Of which: Change in FV and devaluation 413 577 164 39.76% • + €2.6 mn due to Ebitda increase Extraordinary managem
Slide 33: Operating performance
OPERATING PERFOMANCE
Slide 34: Commercial highlights
34 Commercial highlights 2015 1Q 2016 Footfalls in Italian Shopping Malls +1.6% +2.4% yoy -0.2% +6.7% progressive Tenants sales in Italian Shopping Malls change +6.0% yoy * No extensions included +4.6% L4L* +2.8% -2.7% Hypermarketys sales progressive +0,3*% yoy (IGD Shopping Centers) change (-3.9% i
Slide 35: Focus on Italian sales in shopping malls
35 Focus on Italian sales in shopping malls TENANTS SALES TREND Sales Growth Sales Decline Progressive trend. Abruzzo extension excluded for 2014, included from April 2015. Le Porte di Napoli extension excluded until November 2015 BREAKDOWN OF MALL TENANTS SALES BY SALES TREND BY BUSINESS SECTOR (20
Slide 36: Financial structure
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Slide 37: Financial highlights 1/2
37 Financial highlights 1/2 31/12/2015 31/03/2016 NET DEBT €984.8 mn €984.2 mn AVERAGE COST OF DEBT 3.67% 3.26% INTEREST COVER RATIO 2.15X 2.52X LOAN TO VALUE 47.3% 47.3% GEARING RATIO 0.93 0.92 May 2016
Slide 38: Financial highlights 2/2
38 Financial highliths 2/2 31/12/2015 31/03/2016 AVERAGE LENGHT OF LONG TERM DEBT 6.3 years 6 years (bonds included) HEDGING ON LONG TERM DEBT + BOND 91.6% 93.7% CREDIT LINES - TOTAL €302.5 mn €301.5 mn CREDIT LINES - AVAILABLE €120.0 mn €114.0 mn UNENCUMBERED ASSETS €867.6 mn €883.5 mn May 2016
Slide 39: 1Q 2016 Results Appendix
1Q FY 2009 2016 RESULTS Bologna Appendix November 11, 2011
Slide 40: Consolidated Financial Statement
40 Consolidated Financial Statement CONSOLIDATED CORE BUSINESS PORTA A MARE PROJECT €/000 31/03/2015 31/03/2016 D% 31/03/2015 31/03/2016 D% 31/03/2015 31/03/2016 D% Revenues from freehold real estate and rental activities 26,856 29,507 9.9% 26,780 29,401 9.8% 76 106 38.6% Revenues from leasehold rea
Slide 41: Margin from activities
41 Margin from activities CONSOLIDATED CORE BUSINESS PORTA A MARE €/000 31/03/2015 31/03/2016 % 31/03/2015 31/03/2016 % 31/03/2015 31/03/2016 % Marginfrom freehold properties 22,999 25,517 10.9% 22,929 25,437 10.9% 70 80 12.9% Margin from leasehold properties 466 518 11.2% 466 518 11.2% 0 0 n.a. Mar
Slide 42: Total consolidated Ebitda: €23.5mn
Total consolidated Ebitda: € 23.5mn 42 Ebitda (core business): € 23.6mn CONSOLIDATED EBITDA (€ 000) -133 55 24 2,691 23,502 20,866 Ebitda 31/03/2015 Change in revenues from Change in direct costs Change in G&A expenses Change in Ebitda "Porta a Ebitda 31/03/2016 rental act. and services Mare" projec
Slide 43: Contracts in Italy and Romania
43 Contracts in Italy and Romania EXPIRY DATE OF HYPERMARKETS AND EXPIRY DATE OF HYPERMARKETS AND MALLS MALLS CONTRACTS ITALY (% no. of CONTRACTS ITALY ( % of value) contracts) N 19 70% 67.4% 80% 76.0% 60% 70% 60% 50% 50% N 311 40% 35.2% N3 N N 254 40% 2 30% N 169 30% 27.2% N 104 N 145 N 159 22.2% 2
Slide 44: Net Debt
44 Net Debt NET DEBT EVOLUTION -12.659 10,100 -2.561 3,378 1,947 -858 984,815 984,162 Net Debt 31/12/2015 Profit for the period attributable to the Depreciations/Devaluations/Change in Change in NWC (net of PM Change in other non assets and Change in fixed/non-fixed assets Change in shareholders' eq
Slide 45: 2016-2018 Business Plan update presentation
2016-2018 Business Plan update presentation
Slide 46: Why an update of the Plan?
46 Why un update of the Plan? Evolution of the macro-economic context Important acquisition carried out at the end of 2015, not foreseen in the 2015-2018 Business Plan New financial operations All this, continuing the strategy of development and pipeline completion May 2016
Slide 47: Introduction – Italian context
47 Introduction – Italian context GDP trend (change %) Consumers and business confidence index 3.0% 120.0 1.5% 1.7% 115.0 2.0% 1.2% 1.3% 1.3% 0.8% 110.0 1.0% 0.6% 105.0 -0.3% 100.0 0.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 2017e 2018e 95.0 -1.0% -1.7% 90.0 -1.1% -2.0% 85.0 80.0 -3.0% -
Slide 48: Introduction – Romania context
48 Introduction – Romania context GDP trend (% change) 10.00% 8.50% 8.00% 6.90% 6.00% 4.20% 3.50% 3.70% 3.40% 4.00% 3% 3.10% 2.00% 1.10% 0.60% 0.00% -0.80% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 2017e 2018e -2.00% -4.00% -6.00% -7.10% -8.00% Source: Eurostat data compiled by IGD GDP is e
Slide 49: The retail real estate
49 The retail real estate Retail investments evolution in Italy Retail investments 1Q2016: €600 mn, +13% vs 4Q 2015 Italy In 1Q 2016 there has been an improvement in investments in the retail real estate sector, the volume of which increased by 13% compared to the last quarter of 2015 and more tha
Slide 50: Strategy confirmed
50 Strategy confirmed Goal: Confirm our position as a leading owner and manager of shopping centers in Italy and continue our path of a sustainable growth SUSTAINABILITY FULLY INTEGRATED IN THE BUSINESS PLANNING ASSET MANAGEMENT FULLY INTEGRATED APPROACH COMMERCIAL/ FINANCE MARKETING May 2016
Slide 51: Main targets - BP 2016-2018
51 Main targets - BP 2016-2018 New Targets BP 2016-2018 Target previous plan (BP 2015-2018) Total growth> +20% approx. REVENUES FROM RENTAL Total growth: confirmed ACTIVITIES cagr* +7% approx. Cagr > +5% approx., increasing cagr* LFL +2% approx. Cagr LFL confirmed EBITDA MARGIN Core business >70%
Slide 52: Assumptions on Italian and Romanian revenues
52 Assumptions on Italian and Romanian revenues ITALY • Occupancy increase (about 1 percentage point with evidence already from 2016) and constant decrease of temporary reductions • Contribution for the whole year of the assets acquired/opened in 2015 (Puntadiferro and Clodì) • Development of revenu
Slide 53: Focus on new openings
53 Focus on new openings Overall growth LFL Rental Revenues (lfl 2015) > + 6% + New openings = Total rental revenues > + 20% Of which: 1. puntadiferro and Chioggia excluded from the like-for-like as opened/acquired in 2015. Whole year revenues already from 2016 2. NEW PROJECTS: Grosseto (opening in
Slide 54: Assumptions on costs and Ebitda evolution
54 Assumptions on costs and Ebitda evolution Costs increase over BP timespan (mainly due to extension of portfolio perimeter for investments), but their impact on revenues decrease. Core business Ebitda and Ebitda margin evolution €87 mn > 70% 67.3% 2015 2016 2017 2018 Ebitda and related margin perf
Slide 55: Assets management assumptions
55 Assets management assumptions 1) Investments evolution 2016 - 2018 • Total investments: approx. €195 mn • Of which, for development: approx. €145 mn • Average yield on cost (on development): > 7% • New GLA approx. 71,500 smq 2) Assumptions on the assets fair values No change in fair value in the
Slide 56: Investments Pipeline
56 Investments Pipeline 2016 2017 2018 Total development Tot. ~ €81 mn ~ €26 mn ~ €38 mn projects ~ €145 mn Total Capex ~ €8 mn Tot. ~€24 mn ~ €18 mn and other ~ €50 mn TOT. INVESTIMENTS ~€195 MN Grosseto ESP – Ravenna Officine Storiche – Livorno New opening Extension New opening November2016 1H 201
Slide 57: Financial area
57 Financial area Main assumptions • Issue of unsecured senior bond 5-7 years in 2016 with an expected cost lower than the current Group’s cost of debt. • Option execise for CMBS early repayment (€135mn, cost approx. 5.2%) Targets confirmed with respect to the previous plan • Maintain a strict finan
Slide 58: Debt structure and debt maturity
58 Debt structure and debt maturity Activities to extend the repayment profile to longer maturities and reduce the average cost of debt are being carried out 200 Milioni 180 EARLY Net Debt CLOSURE of which OPTION at 31/03/2016 160 135mn € €984.16 mn CMBS 140 BNP Cost 23.7% 120 5.2% 100 43.7% 56.3% 8
Slide 59: FFO evolution and Dividend policy
59 FFO evolution and Dividend policy CAGR 2015 -18 + 18.3 % Funds from 75 operations evolution (FFO - € mn) 45 2015 2016 2017 2018 As for dividends, policy, already communicated to the market, of the distribution of about 2/3 of the core business FFO, is confirmed Dividend Reinvestment Option (DRO)
Slide 60: Final remarks
60 Final remarks The updated Business Plan, that has a low execution risk, confirms IGD’s ability to increase FFOs and strenghten visibility of the dividends that will be distributed. Following Punta di Ferro acquisition, not foreseen in the previous Plan, FFO target has been further improved. There
Slide 61: BP 2016-2018 Appendix
vA — BP 2016-2020 Appendix
Slide 62: Focus BP: pipeline in progress (1/6)
62 Focus BP: pipeline in progress (1/6) Mall acquisition in Grosseto The new shopping mall will have a GLA of approx. 17,000sqm, divided in 42 shops and 8 medium surfaces, and an hypermarket. Pre-letting: around 80% (full occupancy is expected on the opening) End of work: November 2016 Total expecte
Slide 63: Focus BP: pipeline in progress (2/6)
63 Focus BP: pipeline in progress (2/6) ESP Shopping Center extension (Ra) The project calls for an increase in the mall’s GLA of 19,000 m² and the creation of 1,100 parking places. End of work: 1H 2017 Total expected investment: approx. €53 mn May 2016
Slide 64: Focus BP: pipeline in progress (3/6)
64 Focus BP: pipeline in progress (3/6) Opening of the Mall Officine Storiche - Livorno Requalification of the industrial warehouses of the former Cantieri Navali Orlando inside of which vast reception facilities and accommodations will be created housing personal services (fitness centers, leisure
Slide 65: Focus BP: pipeline in progress (4/6)
65 Focus BP: pipeline in progress (4/6) Gran rondo’ - Extension and restyling The project calls for an extension with the creation of a new medium surface area, with a total GLA of around 2,850 sqm and the complete restyling of the shopping mall. End of work: 1H 2018 Total expected investment: appro
Slide 66: Focus BP: pipeline in progress (5/6)
66 Focus BP: pipeline in progress (5/6) PORTA A MARE PROJECT - LIVORNO The purpose of the project is to transform an area of the port of Livorno, near the city center, with the construction of a multi-purpose complex of about 70,000 m² which will house shops, residential units, services, accommodati
Slide 67: www.gruppoigd.it
www.gruppoigd.it Claudia Contarini, IR T. +39. 051 509213 claudia.contarini@gruppoigd.it Federica Pivetti T. +39. 051 509242 federica.pivetti@gruppoigd.it
Immobiliare Grande Distribuzione SIIQ S.p.A. (IGD) — Non-Deal Roadshow (May 2016) on 6ix