Instone Real Estate Group SE · XETR:INS
Instone Real Estate — Q1 2019 Earnings Presentation
28 slides from Instone Real Estate's earnings presentation, May 28, 2019
Slide 1: Q1 2019 Results Presentation
Q1 2019 RESULTS PRESENTATION MAY 28, 2019
Slide 2: Disclaimer
INSTONE REAL ESTATE Disclaimer BY VIEWING THIS PRESENTATION, YOU AGREE TO BE BOUND BY THE FOLLOWING TERMS AND CONDITIONS REGARDING THE INFORMATION DISCLOSED IN THIS PRESENTATION. THIS PRESENTATION HAS BEEN PREPARED BY INSTONE REAL ESTATE GROUP N.V. (THE "COMPANY", TOGETHER WITH ITS SUBSIDIARIES, "IN
Slide 3: Table of Contents
Table of Contents 01 | Q1 2019 Key Achievements and Portfolio Review 02 | Financial Performance 03 | Outlook 04 | Appendix 3 |
Slide 4: Q1 2019 Key Achievements
Q1 2019 Key Achievements Construction launched for 1st section of project „Schumannshöhe“ (Bonn) Building permit granted for 2nd and 3rd section of „Schumannshöhe“ and project „City-Prag“ (Stuttgart) Operational €1.4bn expected sales volume (Q1 2018: €1bn) currently marketed (relates to projec
Slide 5: Development of Project Portfolio
Development of Project Portfolio New approvals 2019 YTD: Project portfolio (exp. sales volume) Project / Location Exp. sales volume Exp. units Hamburg €182m 712 Hamburg €34m 70 Herrenberg €55m 141 Total €271m 923 Portfolio summary as of 31.03.2019: • €4,790m exp. sales volume • 45 projects; 11,041 u
Slide 6: Status Update on Project in German Metropolitan Region
Status Update on Project in German Metropolitan Region Status update: Project key facts: 1. A solution containing a modified urban development Large inner-city project in German metropolitan region concept has been developed 124K sqm gross floor area 2. The conclusion of a neighbourhood agreemen
Slide 7: Table of Contents
Table of Contents 01 | Q1 2019 Key Achievements and Portfolio Review 02 | Financial Performance 03 | Outlook 04 | Appendix 7 |
Slide 8: Basis of Presentation
Basis of Presentation IFRS 16 – Leases Lessee has to show a “Right of use asset” in the amount of the lease obligation and correspondingly a “Leasing liability” Profit and loss of the lessee shows the depreciation of the right of use asset and interest expenses for the lease obligation. Impa
Slide 9: Q1 2019 Results of Operations
Q1 2019 Results of Operations Q1 2019 Results of Operations (€m, ppa adj.) Q1 2019 Q1 2018 Delta • Revenue significantly increased due to progress in sales Revenues 84.2 52.7 59.8% and contruction activity Project cost -57.1 -33.7 69.4% Gross profit 27.1 19.0 42.6% • Gross margin of 32.2% reflects c
Slide 10: Taxes Review Key Findings
Taxes Review Key Findings • Substantial differences between IFRS financial statements (recognition of revenues over time) and German tax financial statements (recognition of revenue at completion of construction only) - therefore substantial deferred taxes Q1 2019 actual statutory tax: €0.6m Q1 2019
Slide 11: Operating Cash Flow Moderate Leverage
Operating Cash Flow Moderate Leverage In € million Q1 2019 Q1 2018 In € million Q1 2019 FY 2018 Delta EBITDA 16.8 8.2 Corporate debt 66.4 66.1 - Other non-cash items -2.1 -5.9 Project related debt 204.2 199.5 2.6% Taxes paid -3.6 -2.3 Financial debt 270.6 265.5 1.9% Change in working capital -35.9 -
Slide 12: Financing Strategy
Financing Strategy Current financing structure Target financing structure Term loan Promissory Group RCF IRE AG Currently no debt outstanding €200m note 3 years 3 years 3 years P&L sharing agreement IRE Development GmbH Promissory note RCF Maturity: >1year 2020/2022 Project level debt Project level
Slide 13: Table of Contents
Table of Contents 01 | Q1 2019 Key Achievements and Portfolio Review 02 | Financial Performance 03 | Outlook 04 | Appendix 13 |
Slide 14: Outlook confirmed
Outlook confirmed Outlook FY 2019 Revenue ramp-up* € million Outlook FY 2019 Revenues (adjusted) 500 - 550 Gross Profit Margin (adjusted) ~28% EBIT (adjusted) 85 - 100 Volume of concludes sales 450 - 550 contracts Thereof from projects with building right**: Thereof from existing projects**: (*Reven
Slide 15: Table of Contents
Table of Contents 01 | Q1 2019 Key Achievements and Portfolio Review 02 | Financial Performance 03 | Outlook 04 | Appendix 15 |
Slide 16: Project Cost Platform
Cost of materials cost of land incl. 10,9% incidental costs 8,4% Non-deductible input Q1 2019 €k 39,8% tax 9,8% shell works Cost of materials -79,319 Project Changes in inventories +23,594 8,6% roof and facade works Cost Indirect sales cost -523 13,7% 8,9% interior works technical building Capitaliz
Slide 17: Income statement (reported)
Income statement (reported) Commentary In €m Q1 2019 Q1 20181 1 In the first quarter of 2019, the Instone Group increased its revenues significantly compared 1 Total revenue 82.7 51.2 to the same period in the previous year. Revenues in the quarter under review amounted to Changes in inventories 23.
Slide 18: Condensed balance sheet
Condensed balance sheet Commentary In €m Q1 2019 FY 2018 5 As at 31 March 2019 (quarterly reporting date) on the basis of the first-time application of 5 Non-current assets 13.8 2.8 IFRS 16 on 1 January 2019, assets from granted rights of use were recognised on the balance 6 Inventories sheet in the
Slide 19: Condensed cash flow statement
Condensed cash flow statement Commentary In €m Q1 2019 Q1 2018 10 Cash flow from operations of the Instone Group amounting to €– 24.9 million in the quarter Consolidated earnings 7.2 -8.4 under review (previous year: €– 75.8 million) was mainly marked by the increase in payment Other non-cash income
Slide 20: Project Portfolio Key Figures
Project Portfolio Key Figures In € million Q1 19 Q4 18 Q3 18 Q2 18 Q1 18 Volume of sales contracts 62.8 206.2 104.2 120.0 30.0 Project Portfolio (as of) 4,790.2 4,763.2 3,620.3 3,589.1 3,408.5 thereof already sold (as of) 1,061.1 998.2 971.9 867.8 779.9 In units Q1 19 Q4 18 Q3 18 Q2 18 Q1 18 Volume
Slide 21: Project Portfolio (as of 31.03.2019)
Project Portfolio (as of 31.03.2019) Breakdown by region; based on sales volume Breakdown by status; based on sales volume Inner circle: Units sales agreement 1) includes Wiesbaden, Ulm, Mannheim, Hannover, Potsdam No unit sales agreement 1) thereof 3.2% of delivered volume of the project portfo
Slide 22: Q1 2019 – Revenue Contribution (Top Projects)
Q1 2019 – Revenue Contribution (Top Projects) Project City Adj. Revenues (€m) City Prag – Wohnen im Theaterviertel Stuttgart 17.0 Quartier Stallschreiber Strasse / Luisenpark Berlin 16.8 Marienkrankenhaus Frankfurt 9.8 Wohnen am Kurpark / Wilhelm IX Wiesbaden 9.5 Heeresbäckerei Leipzig 9.3 Franklin
Slide 23: Q1 2019 – Volume of Concluded Sales Contracts (Top Projects)
Q1 2019 – Volume of Concluded Sales Contracts (Top Projects) Project City Volume (€m) Units Marienkrankenhaus Frankfurt 15.9 14 Quartier Stallschreiber Strasse / Luisenpark Berlin 11.7 25 Theaterfabrik Leipzig 11.4 38 Sebastianstrasse / Schumanns Höhe Bonn 10.2 24 Wohnen am Kurpark / Wilhelms IX Wie
Slide 24: Sales Offer as of 31.03.2019 (Top Projects)
Sales Offer as of 31.03.2019 (Top 5 Projects) Project City Sales volume (€m) Units Marienkrankenhaus Frankfurt 134 120 Quartier Stallschreiber Strasse / Luisenpark Berlin 75.8 115 Sebastianstrasse / Schumanns Höhe Bonn 45.6 124 Wohnen am Kurpark / Wilhelms IX Wiesbaden 31.1 42 Therese Munich 9.6 2 T
Slide 25: Project Portfolio (projects >€30m sales volume)
Project Portfolio (projects >€30m sales volume, representing total: ~€4.6bn) Building Sales volume Land plot right Sales Construction Project Location (expected) acquired started started obtained Hamburg Essener Straße Hamburg 94 Mio. € Schulterblatt Hamburg 83 Mio. € Kösliner Weg Norderstedt-Garste
Slide 26: Project Portfolio (projects >€30m sales volume)
Project Portfolio (projects >€30m sales volume, representing total: ~€4.6bn) Building Sales volume Land plot right Sales Construction Project Location (expected) acquired started started obtained Rhine-Main Wiesbaden-Delkenheim, Lange Seegewann Wiesbaden 92 Mio. € Siemens-Areal Frankfurt 551 Mio. €
Slide 27: Project Portfolio (projects >€30m sales volume)
Project Portfolio (projects >€30m sales volume, representing total: ~€4.6bn) Building Sales volume Land plot right Sales Construction Project Location (expected) acquired started started obtained Baden-Wurttemberg City-Prag - Wohnen im Theaterviertel Stuttgart 126 Mio. € Wohnen am Safranberg Ulm 49
Slide 28: Financial Calendar / Events: Contact
Financial Calendar / Events: Contact 28 May 19 Publication of Quarterly Statement as of 31 March 2019 Thomas Eisenlohr 06 June 19 db access Conference, Berlin Head of Investor Relations 13 June 19 Annual General Meeting, Essen Instone Real Estate Group AG 20 June 19 Morgan Stanley Europe & EEMEA Pro
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