Neinor Homes Sa · BME:HOME
Neinor Homes Sa — Q1 2017 Earnings Presentation
30 slides from Neinor Homes Sa's earnings presentation, Apr 26, 2017
Slide 1: Q1 2017 Results Presentation
26th April | 2017 18:45 CET Q1 2017 Results Presentation
Slide 2: Disclaimer
DISCLAIMER This Presentation does not constitute or form part of any purchase, sales or exchange offer, nor is it an invitation to draw up a purchase sales or exchange offer, or advice on any stock issued by Neinor Homes, S.A. (“Neinor”). This Presentation and the information contained herein do not
Slide 3: Today's Agenda
Today’s Agenda Presenters Contents 1 Introduction Juan Velayos CEO 2 Business Review 3 Financial Overview 4 Key Takeaways Jordi Argemí CFO 5 Case Studies 6 A Socially Responsible Company Juan Gómez Vega 7 Q&A Head of Investor Relations 3
Slide 4: 1. Introduction
1. INTRODUCTION RIVERSIDE HOMES - MADRID
Slide 5: Investment Case in the Leading Homebuilder in Spain
Investment Case in the Leading Homebuilder in Spain Leading Pure Residential Homebuilder in Spain with ~30 years of track-record Targeting multi-family residential units Medium to medium-high-end client base with access to bank mortgages 75% / 25% first vs. second residence Three Pillars to Create a
Slide 6: Strong Q1 Outperforming Expectations
Strong Q1 Outperforming Expectations HIGHLIGHT SUPPORTIVE MACRO MACRO SUPPORT FOR GDP growth in 2016 Housing affordability Housing Starts INCREASING HOUSING 1 3.2% y-o-y 6.8x price to avg. income* 64,038** DEMAND Above European Average 4.5% HPA**/30% below peak 73% below peak *Q4 2016 ** 2016 THE GL
Slide 7: 2. Business Review
2. Business Review ATRIA HOMES - MADRID
Slide 8: Strong Macro Fundamentals
1 Strong Macro Fundamentals Macroeconomic Growth Supporting High Housing Demand Few Players to Satisfy Growing Demand GDP grew 3.2% in 2016 and is expected to grow 2.6% in 2017. Strong HPA growth (4.5% in 2016) but prices still 30% below peak Fastest growing big economy in Europe Growing supply volu
Slide 9: Continued Stream of Acquisitions of Fully Permitted Land
2 Continued Stream of Acquisitions of Fully Permitted Land Q1 Land Acquisition Activity Summary Acquisition Program Evolution Seven acquisitions were closed during Q1 for EUR 51.6m, representing c. 700 units with a 14% of Budget 26% of 2017 blended developer margin of c.20% Budget to Complete BP to
Slide 10: Active commercialisation in 33 Developments
3 (1) Active commercialisation in 33 Developments Strong Q1 Sales Performance % Pre-Sales / Total Stock For Sale by Region Strong pre-sales in a quarter that is traditionally slow Central Region Northern Region 319 units (46% ahead of YTD expectations), equivalent to 65% 67% EUR 116m (60% ahead of Y
Slide 11: Development Activity: Sites in Production
4 Development Activity: 60 Sites in Production Summary of Quarterly Development Activity Dehesa Homes – 1 of the 30 Sites Under Construction Activity in Q1 7 New Launches– 696 units 3 new WIP (construction starts) – 267 units 1 delivery – 40 units – see Case Study for more info As at the end of Q1 –
Slide 12: Ancillary Businesses Delivering Cash
5 Ancillary Businesses Delivering Cash Legacy Remaining BV and Quarterly Sales (EUR m) Servicing Revenues and EBITDA evolution 250 10 Sales: EUR 57m 8,7 Remaining BV: EUR 163m 9 200 8 7 6,6 6,5 6,2 6,3 150 6 EUR m EUR m 4,8 5,0 5 4,5 3,8 4,0 100 4 3 50 2 1 0 0 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
Slide 13: 3. Financial Overview
3. Financial Overview ARBAIZENEA HOMES – DONOSTIA (BASQUE COUNTRY)
Slide 14: P&L Statement: Consistent with Target Margins Despite Accelerated Sales
6 P&L Statement: Consistent with Target Margins Despite Accelerated Sales Consolidated P&L (in EUR m) KEY CONSIDERATIONS €M Q1 2017 Strong revenue performance (32% above YTD expectations). Driven by ancillary businesses, with solid Legacy Sales (EUR 57m) Revenues 72,2 and stable servicing revenues (
Slide 15: CF Statement: Legacy Sales Fully Financing Ramp-Up
6 CF Statement: Legacy Sales Fully Financing Ramp-Up Summary Cash Flow (in €M) €M Q1 2017 KEY CONSIDERATIONS 1,2 Profit (Loss) before Tax -10,7 Slightly negative Free Cash Flow (EUR 15m negative). Adjustments 1,8 Amortization 0,1 Legacy sales have fully financed i) land acquisitions (EUR 51.6m) and
Slide 16: Balance Sheet: Strong Cash Position
6 Balance Sheet: Strong Cash Position Summary Balance Sheet (in EUR m) €M Q1 2017 EoP 2016 Change Total Balance Sheet of EUR 1.1 bn. Total Equity of EUR 720m and PPE 1,5 1,6 0,0 -1,9% total Liabilities of EUR 402m Investment Property 12,5 12,9 -0,4 -3,0% Other Non-Current Assets 1,2 1,1 0,1 11,9% In
Slide 17: Working Capital: Decreasing Legacy Weight
6 Working Capital: Decreasing Legacy Weight Working Capital (in EUR m) €M Q1 2017 EoP 2016 Change INVENTORIES & INVESTMENT PROPERTY Investment Property 12,5 12,9 -0,4 -3% Inventories 934,6 925,4 9,2 1% LEGACY (17% OF INVENTORIES) Debtors 37,1 29,6 7,5 25% 1 PORTFOLIO EVOLUTION Trade & Receivables 15
Slide 18: Net Debt: Low Debt Ratios
6 Net Debt: Low Debt Ratios Net Debt (in EUR m) €M Q1 2017 EoP 2016 Change KEY RATIOS Gross Debt 314,8 315,6 -0,8 -0,3% NET DEBT Non-Current Bank Borrowing 26,6 26,6 0,0 0,0% -84€M 291,6 Corporate Financing 26,6 26,6 0,0 0,0% 208,2 Current Bank Borrowing 286,6 277,1 9,6 3,5% Land Financing 208,6 205
Slide 19: 4. Key Takeaways
4. Key Takeaways VOLLPELLERES HOMES – SANT CUGAT (CATALONIA)
Slide 20: Strong Outperformance in Q1 Across the Board
Strong Outperformance in Q1 Across the Board 1 OUTSTANDING MARKET TAILWINDS CAPITALIZED BY THE COMPANY. NEINOR’S LEADERSHIP HEIGHTENED BY SUCCESFUL IPO 2 CONTINUED ACQUISITIONS OF FULLY PERMITTED LAND ABOVE TARGET MARGINS 3 PRE-SALES TOPPED 100 UNITS/MONTH IN Q1 OVERPERFORMING COMPANY’S EXPECTATIONS
Slide 21: 5. Case Studies
5. Case Studies PRADO HOMES - MADRID
Slide 22: Acquisition: Malilla, Valencia
Acquisition: Malilla, Valencia 9 weeks Launched WIP Delivery Land Marketing Plan Design / Procurement / Commercialisation Under Construction Post Acquisition Sale Location Malilla, Valencia Joaquín Sorolla Train- Station Units (#) 54 Ciudad de las Artes Sqm 6,809 Valencia Acquisition Date March 2017
Slide 23: Immediate Launch: Leioandi Homes, Basque Country
Immediate Launch(1): Leioandi Homes, Basque Country 6 weeks Launched WIP Delivery Land Design / Procurement / Commercialisation Under Construction Post Acquisition Marketing Plan Sale Leioa Location Leioa, Bilbao Units (#) 62 Sqm 7,474 Target market Middle-upper income Medium-High Qualities BREEAM c
Slide 24: Launched: Vollpelleres Homes II, Catalonia
Launched: Vollpelleres Homes II, Catalonia Launched 32 weeks WIP Delivery Land Marketing Plan Under Construction Post Acquisition Design / Procurement / Commercialisation Sale Location Sant Cugat, Barcelona Units (#) 48 Sqm 4,875 Commercialization Start (Exp) Q2 2017 Architect Musquera Arquitectura
Slide 25: WIP: Avenida Homes, Madrid
WIP: Avenida Homes, Madrid Launched WIP 17-20 months Delivery Land Marketing Plan Design / Procurement / Commercialisation Under Construction Post Acquisition Sale Location La Latina, Madrid Units (#) 54 Sqm 5,766 Construction Company CHM Degree of Progress <25% Expected Delivery 2018 % of Pre-Sales
Slide 26: Deliveries: Los Alerces – Móstoles, Madrid
Deliveries: Los Alerces – Móstoles, Madrid Launched WIP Delivery Land Marketing Plan Design / Procurement / Commercialisation Under Construction Post Acquisition Sale Location Mostoles, Madrid Units (#) 40 Sqm 4,525 Construction Company Obenasa Construction Started Q2 2015 Construction Months 17 Del
Slide 27: 6. A Socially Responsible Company
6. A Socially Responsible Company PLAZA HOMES - MADRID
Slide 28: A Socially Responsible Company
A Socially Responsible Company Corporate Governance: adapted to best practices for publicly quoted companies 3 Independent Directors joined the Board ahead of the IPO Modification of: By-laws; Board and Committees Regulations; and Compliance / Internal Audit Codes Approval of: General Shareholders M
Slide 29: 7. Q&A
7. Q&A PALACIO HOMES – CORDOBA (ANDALUSIA)
Slide 30: StS Neinor wou:
StS Neinor wou: