Metrovacesa Sa · BME:MVC
Metrovacesa Sa — 9M 2022 Earnings Presentation
24 slides from Metrovacesa Sa's earnings presentation, Oct 27, 2022
Slide 1: Results 3Q2022
Mesena 80 render (Madrid) Results 3Q2022 October 27th, 2022
Slide 2: Disclaimer
Disclaimer This Presentation neither constitutes nor forms part of any offer for sale or invitation to purchase or subscribe for, or request for an offer of purchase or subscription, of the shares belonging to Metrovacesa, SA (“Metrovacesa”). This Presentation, as well as the information included th
Slide 3: Agenda
Agenda Table of Contents 1. Highlights 2. Business Update 3. Financial Overview 4. Closing remarks Appendices Today’s Presenters Jorge Pérez de Leza Borja Tejada Juan Carlos Calvo CEO CFO Strategy & IR 3.
Slide 4: 1. Highlights
Mirades (Terrassa, Barcelona) 1. Highlights
Slide 5: Highlights
Highlights Good operating performance in 9M +22% YoY in deliveries / Stable backlog of presales / +64,6% in net profit Resilient demand for new housing Despite some slowdown since April 2022 / Limited market supply / Increased market uncertainty On track to meet key 2022 operational targets Operatio
Slide 6: 2. Business Update
Jardines de Tetuán (Madrid) 2. Business Update
Slide 7: Key operational data
Key operational data as of September 30th 2022 Active Deliveries / Land Construction Financials projects Sales portfolio Sales Backlog (1) 3,047 €936m €287m Sold units €308 k/unit ASP (2) 3,441 units under construction (3) 1,327 units delivered €30.2m Total cash in the period Land Sales Under commer
Slide 8: Sector dynamics
Sector dynamics Resilient demand for new housing, although increased uncertainty on the future Housing demand in Spain: Housing supply: House prices: Construction costs: Number of transactions (k units) New housing construction starts (k units) YoY increase (%) YoY increase (%) 600 120 10% 12% 8% 10
Slide 9: Pre-sales
Pre-sales Flat pre-sales YoY in BTS 9M22 pre-sales: 1,341 units # units • 9M net pre-sales flat YoY (+0.2%) in BTS Resilient Recent demand trends • 3Q pre-sales down 5% YoY in BTS ASP ASP pre-sales €278k €323k • Avg. monthly absorption ratio(1) of 2.6% 9M • Some slowdown in demand since April, but s
Slide 10: Residential deliveries
Residential deliveries On track to meet FY22 targeted 1,600-2,000 units 9M22 deliveries Deliveries by region 9M22 # units €346m % of total units Strong visibility on deliveries for 2022-2024 Others 1,327 6% Balearic I. 6% Andalucía €316m • Target: 1,600-2,000 units 27% Galicia 8% 2022 • 100% works c
Slide 11: Operational activity
Operational activity Providing high visibility for the next few years Pre-sales backlog Backlog evolution in # units: Units in construction 3,033 1,341 (1,327) 3,047 • Avg. unit price (ASP): • 915 units completed construction €308k (+10% vs. Dec.21) in 9M and 761 units started in the 3,047 3,698 • 7
Slide 12: Pipeline from land under management
Pipeline from land under management Several quality projects in the near term Zoom in on Madrid: next project launches from land originally under management Growing relevance of land under management Total units First launch in new project launches Mesena 80 155 units Oct 2022 • Greater visibility o
Slide 13: Land monetisation
Land monetisation Adapting with flexibility to a more challenging context Sales of land and commercial assets in 2018-2022, €m Land monetisation in 9M 2022 Land sales: €30.2m Others: c.€25m Total P&L in 2018-2022: €258.7m 106.8 • Residential use and non-core land. Sale prices in line with 91.5 P&L b
Slide 14: 3. Financial Overview
MB2 office project (Madrid) 3. Financial Overview
Slide 15: Profit & Loss
Profit & Loss Summary €m 9M 2021 9M 2022 % Change Revenues 335.2 351.8 +5.0% +5% revenues €351.8m Development 316.0 345.8 Land sales 19.1 6.0 Gross Profit 64.7 73.6 13.6% Development 66.4 73.5 +16.4% EBITDA % gross margin dev`t 21.0% 21.2% €34.1m Land sales (1.6) 0.1 Net margin 46.4 54.6 17.5% EBITD
Slide 16: Net debt
Net debt Solid financial structure Net debt details Evolution of net debt and LTV ratio €m Dec. 2021 Sep. 2022 300 8.5% 9.0% Developer loans 55.9 29.6 8.0% 250 Corporate debt 338.6 322.5 6.2% 7.0% 5.9% 200 6.0% Gross Financial Debt 394.5 352.1 5.0% 150 Unrestricted cash 231.3 200.1 4.0% 100 3.0% S/T
Slide 17: 4. Closing Remarks
Illa Natura (Terrasa, Barcelona) 4. Closing Remarks
Slide 18: A new dividend announcement
A new dividend announcement €1.05/share, equivalent to €159m • Subject to approval on General Meeting, called Dividend for 29/11/2022 €1.05 • Payment expected in December 2022 per share • The BoD may offer the option to receive payment in cash or in a cash/shares combination, at the discretion of sh
Slide 19: Moving to a more efficient capital structure
Moving to a more efficient capital structure While keeping prudent debt ratios Dividend history In excess of ordinary € per share distribution policy LTV ratio (%): MVC vs peers average Total 2019-2022: €422m or €2.78 /sh • Distributing current excess cash balance 12% before year-end, as an extraord
Slide 20: Closing remarks
Closing remarks Good progress on targets and strategy Market outlook: increased uncertainty Deteriorating macro context, with unclear impact MVC is very well positioned to manage the current context Visibility on future deliveries / Maintaining launches / Flexible to adapt Delivering on our very att
Slide 21: Appendices
Adhara (Torre del Mar, Málaga) Appendices
Slide 22: Profit and Loss
Profit and Loss (€m) 9M 2021 9M 2022 YoY A Total Revenues 335.2 351.8 5.0% Key comments Residential Development 316.0 345.8 Land Sales 19.1 6.0 Total COGs (270.4) (278.3) Residential Development (249.7) (272.3) A -Total revenues of €351.8m (up 5% YoY) Land Sales (20.8) (5.9) • Residential revenues o
Slide 23: Balance Sheet
Balance Sheet (€m) Dec.21 Sep.22 Key comments Investment Property 417.0 298.7 Other non-current assets 159.5 167.5 Total non-current assets 576.5 466.2 - Healthy balance sheet Inventory 1,844.0 1,886.4 Land 992.5 970.7 - Strong cash position of €287.1m: WIP & finished product 851.6 915.7 • Unrestric
Slide 24: Q&A
Residencial Avante (Valencia) Q &A