Inmobiliaria Del Sur, S.a. · BME:ISUR
Inmobiliaria Del Sur — Grupo Insur — Investor Presentation (August 2020)
37 slides from Inmobiliaria Del Sur's investor presentation, August 2020
Slide 1: Grupo Insur Corporate Presentation August 2020
Grupo Insur Corporate Presentation August2020
Slide 2: Legal disclaimer
“ Legal disclaimer This presentation is the exclusive property of INMOBILIARIA DEL SUR (INSUR). Its total or partial reproduction is strictly prohibited and it is covered by current law. Offenders will legally prosecuted both in Spain and abroad. The use, copy, reproduction or sale of this publicati
Slide 3: Rationale behind the use of the proportionate method
“ Rationale behind the use of the proportionate method Grupo INSUR (Insur) , whose parent company is Inmobiliaria del Sur, S.A., develops two main activities, housing development and rental. The rental activity is carried out by Insur Patrimonial, S.L.U. (IPAT), fully owned by Insur, as well as by o
Slide 4: 1. Who are we?
1. Who are we? 4
Slide 5: Who are we?
Who are we? • 1945 Foundation; share capital 10 Million Pesetas • 1946 Acquisition of land plots at Av. República Argentina in Seville • 1947 50 Million Pesetas capital increase and entry of new partners • 1947-1982 Development of the Housebuilding branch by investing all the reserves in commercial
Slide 6: Business model
Business model Virtuous business model Combination of housebuilding and rental Rental Housebuilding UNIQUE BUSINESS MODEL… …SUSTAINABLE ON THE LONG TERM Sustainable debt Shareholding stability and alignment management and ownership → long term strategy Reasonable balance between both business lines
Slide 7: Rental
Rental Distribution by GAV Distribution according to typology 8% 2.2% 0.1% 0.7% 5.9% 23% 18.5% 72.6% 70% Sevilla Madrid Huelva Córdoba Málaga Jerez Offices Commercial Premises Other Portfolio of 134,213 sqm of offices and commercial premises and more than 2,500 parking spaces Significant buildings E
Slide 8: Rental: prime area locations
Rental: prime area locations Ed. García Lovera (Córdoba) Aldi Joaquín Turina (Madrid) Capitán Haya 24-25 (Madrid) Madrid 19% Córdoba 2% Ed. Insur Huelva Sevilla 73% Ed. Insur (Sevilla) Ed. Insur Cartuja (Sevilla) Huelva 6% Málaga 0.1% Jerez 0,7% Ed. IDS Huelva (Huelva) C.C. El Mirador (Sevilla) Ed.
Slide 9: Rentals
Rentals • In the 1H 20 the surface sold amounts to 2,004.82 sqm. Revenues • Occupancy rate rises to 88.87% . 55.5% of the unoccupied M€ surface is under reform • The annualized rental income of the contracts in force at 30th June 2020 (including incomes derived from the parking activity, the contrac
Slide 10: Homebuilding
Homebuilding ▪ Higher margins than those on the rental activity ▪ Operating in areas where we have extensive knowledge and expertise as it is a sector with local characteristics. Western Andalusia (mainly Seville), Malaga, Costa del Sol and Madrid ▪ Mid-high end segment housing mainly in areas with
Slide 11: Housebuilding
Housebuilding * Proportional method ** Owned developments and total JVs Revenues* • Excellent sales performance in the 1H20; despite the two months lockout, the sales figure in M€ the 1H20 is very similar to the one of 1H19 • The Group currently has 1.764 houses under development of which 560 are un
Slide 12: Ongoing developments and land portfolio
Ongoing developments and land portfolio Ongoing Developments Land Portfolio 1,764 ongoing units 2,486 units ▪ 210 housing units completed of which 143 are pending to be ▪ 87,706 sqm of buildable plots for residential delivered and 67 pending to be sold. use, 816 units ▪ 27 ongoing developments (12 i
Slide 13: Finished developments
Finished developments Figures as of June 2020 100% owned developments Development Location Units Sold units Altos Castilleja VII Castilleja de la Cuesta (Sevilla) 1 Antonio Mairena Sevilla 4 1 Conde de Zamora Córdoba 20 3 Plaza del Teatro Málaga 44 41 Altos del Retiro Churriana (Málaga) 22 12 91 57
Slide 14: Finished developments pending start of delivery
Finished developments pending start of delivery# * Under comercialization Figures as of June 2020 JV developments Sales Volume Estimated Sold Development Location Units (M€) delivery units Boadilla Essences I* Boadilla del Monte (Madrid) 32 19.1 2020 31 32 19.1 31 (97%) 14 #Does not include the Sout
Slide 15: Developments under construction
Developments under construction Figures as of June 2020 * Under comercialization 100% owned developments Sales Volume Estimated Sold Development Location Units (M€) delivery units Residencial 75 Aniversario Sevilla 48 33.6 2020 28 48 33.6 28 (58.%) JV developments Sales Volume Estimated Sold Develop
Slide 16: Projects under development
Projects under development Figures as of June 2020 * Under comercialization 100% owned developments Development Location Units Estimated construction start date# Sold units Santa Aurelia Sevilla 104 2020 5 104 5 (5%) JV developments Development Location Units Estimated construction start date# Sold
Slide 17: Construction and Project Management
Construction and Project Management 7.7 M€ CONSTRUCTION REVENUES 1.3 M€ MANAGEMENT REVENUES -60.5% DECREASE -44.1% DECREASE Main projects currently managed: ▪ Río 55 Madrid Business Park 28,000 sqm divided First Occupation Certificate. SOUTH BUILDING IDS MADRID MANZANARES, S.A. between 2 buildings)
Slide 18: 2. Covid-19 measures
2. Covid-19 measures 18
Slide 19: Measures taken after COVID-19
Measures taken after COVID-19 1 Human Resources Plan to protect employees and partners Evaluating alternatives in order to adapt the 2 Finance Special cash protection plan. Maximum stress scenarios 3 Real Estate Development All the works keep going structure and costs to the new environment Converti
Slide 20: 3. Financial Results
3. Financial Results 20
Slide 21: Executive Summary. 1H 2020 Highlights
Executive Summary. 1H 2020 Highlights Figures by proportionate method REVENUES OPERATING PROFIT • EBITDA and Net Profit will increase at the end of the year due to the 43.3 M€ -7.7% 6.1 M€ -5.0% concentration of deliveries within the last semester EBITDA NET PROFIT • Housebuilding: good performance
Slide 22: Executive Summary. 1H 20 Results
Executive Summary. 1H 20 Results M€ All figures by proportionate method -7.7% REVENUE BREAKDOWN 46.9 43.3 +51.4% Housebuilding Rentals Construction Asset Management -60.5% 27.9 -4.6% 3% -44.1% 18.5 19.4 1H 19 18% 1H 20 6.7 7.7 64% 6.4 2.4 1.3 15% Revenues Housebuilding Rentals Construction Asset Man
Slide 23: NAV, GAV, LTV & debt
NAV, GAV, LTV & debt LTV evolution % INSUR GAV * INSUR NAV** 38.9 36.2 36.5 38.6 39.0 25% 327.5*M€ 402.5 M€ 341.2 1Q 2019 333.8 75% 330.9 325.7 Real Estate development Rental 310.8 2017 2018 2019 1T 20 1S 1H20 20 INSUR GAV** Net financial debt evolution 1H 2018 FY 2018 FY 2019 1Q 2019 1H 2020 M€ 195
Slide 24: 4. Share Price evolution
4. Share Price evolution 24
Slide 25: Share evolution
Share evolution Share Price 1H 2020 In 1H 2020 the share Price (ISUR) dropped by 33%. In that same period, the Ibex 35 decreased by 25.4% and the Ibex Small Caps decreased by 13.8%. However, in the 2Q 20 the share price recovered by 3.54%. The share closed at 7.04 € which implies a market cap of 119
Slide 26: 5. Strategy
5. Strategy 26
Slide 27: Strategy
Strategy Homebuilding Rental 1. Investment primarily in fully-permitted Land 1. Development of our assets from the ground 2. Operating in markets where we have extensive knowledge up 3. Project development in areas with proven demand (first residence 2. New investments located in Madrid in provincia
Slide 28: 6. Annex
6. Annex 28
Slide 29: Corporate structure
Corporate structure Housebuilding Rental Construction JV 29
Slide 30: Corporate Governance
Corporate Governance Board of Directors with a strong commitment to the highest standards of corporate governance 1. The Board of Directors represents a 36.1% stake in the capital of Insur. Much of this participation is in the hands of the Pumar Family, which pledges a significant part of its herita
Slide 31: Board of Directors
Board of Directors Proprietary Directors Independent Directors Prudencio Hoyos-Limón Pumar Brita Hektoen Wergeland Augusto Sequeiros Pumar Jorge Segura Rodríguez Candelas Arranz Pumar José Luis Galán González Andrés Fernández Romero José Manuel Pumar López Salvador Granell Balén Inversiones Agrícola
Slide 32: Río 55 Madrid Business Park
Río 55 Madrid Business Park 2 buildings. 28,000 sqm offices 400 parking spaces, of which 40 have recharge points installed and 80, preinstalled 1,900 sqm floors which allow great versatility Excellent location, within M 30, and surrounded by services and good connections More tan 8,600 sqm of Green
Slide 33: Management Team
Management Team Ricardo Pumar Board member since 2001 and Chairman of the Management Board since 2005. Chairman Graduated in Law and Business Administration (ICADE) and Senior Management Programme (Instituto San Telmo). He has 20 years experience in Business Administration and Civil Law. He joined I
Slide 34: Management Team
Management Team He joined Insur in 1997 Pedro Candáu Technical Architect (Universidad de Sevilla), Real Estate Management Programme (CEU) and Business Administration Programme (Instituto San Telmo). Construction Director Since he joined the company, he has held various positions - director of projec
Slide 35: Conciliation between equity method and proportionate method
Conciliation between equity method and proportionate method Consolidated P&L Thousand € 1H 2020 1H 2019 Equity method Adjustments Proportionate Equity method Adjustments Proportionate Revenues 35,370 7,905 43,276 56,430 (9,566) 46,864 a Housebuilding 12,372 15,568 27,939 9,532 8,928 18,460 Rentals 6
Slide 36: Conciliation between equity method and proportionate method
Conciliation between equity method and proportionate method 30/06/2020 31/12/2019 Consolidated balance sheet Thousand € Equity method Adjustments Proportionate Equity method Adjustments Proportionate Property, Plant and Equipment 150,897 77 150.974 146,646 100 146,746 a Financial investments in JVs
Slide 37: María Pérez-Mosso, Head of IR
María Pérez-Mosso Head of IR Tel: +34 671 497 670 mperezm@grupoinsur.com