Metrovacesa Sa · BME:MVC
Metrovacesa Sa — FY2022 Earnings Presentation
34 slides from Metrovacesa Sa's earnings presentation, Feb 27, 2023
Slide 1: Results FY2022
Monteburgos 2 (Madrid) Results FY2022 February 27th, 2023
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
Adhara (Torre del Mar, Málaga) 1. Highlights
Slide 5: Highlights
Highlights ▪ Deliveries: c.1,700 units Key 2022 targets Target: 1,600-2,000 accomplished ▪ Operating cashflow: €151.8m Target: OP CF > €150m Outstanding ▪ Dividend paid: €250m or €1.65/sh dividend in 2022 A dividend yield of 26%(1) ▪ Resilient demand for new housing Maintain progress Despite the eco
Slide 6: 2. Business Update
Illa Natura (Terrassa, Barcelona) 2. Business Update
Slide 7: Key operational data
Key operational data as of December 31st 2022 Active Deliveries / Land Construction Financials projects Sales portfolio Sales Backlog (1) 3,171 €990m 4,101 units under construction (3) 1,699 units delivered in the period €53.3m €226.8m Sold units €312 k/unit ASP (2) Land Sales Net debt €259 k/unit A
Slide 8: Sector dynamics
Sector dynamics Market fundamentals remain supportive Housing transactions in Spain: Construction starts in Spain: k units k units 900 250 Demand: ~650k units in 2022 (+15% YoY) 800 700 649k 200 • Strong volumes in 1H, followed by a slowdown in 2H 600 500 150 • New housing proving more resilient tha
Slide 9: Pre-sales
Pre-sales Sound demand, with absorption levels near historic average FY22 pre-sales: 1,837 units 496 units ASP: Absorption rates (1) in 4Q22 +14% YoY # units • Similar to the historic • 4Q presales: above last two • Positive impact of avg. ASP: average (2.5%) quarters (+37% QoQ vs. 3Q) +14% YoY to €
Slide 10: Residential deliveries
Residential deliveries FY22: c.1,700 units delivered, in line with targets FY22 deliveries # units Increased • FY22 deliveries +4% YoY in units €442m deliveries • 372 units delivered in 4Q22 €472m Deliveries by region FY22 1,699 % of total units 1,627 Others • FY22 ASP € 259 k, in line with 9M22 Bal
Slide 11: Operational activity
Operational activity Consistent with medium term target of +2,000 units High visibility Pre-sales 1,837 units net presales in 2022 Pre-sales coverage backlog 3,171 3,033 • €990m in future revenues (+16.5% YoY) • Avg. unit price (ASP): €312k (+11.4% YoY) >80% >60% 2023 2024 2021 2022 Units in 1,794 u
Slide 12: Land pipeline
Land pipeline From land under management, to be topped-up with new purchases Land management gaining relevance in new launches… Expected for 2023-2025 In aggregate 2018-2022 • Major source of land for new project >5.0k 3,698 launches in coming years >3k 3,698 3.6k 3,698 4.7k 3,698 units Units in to
Slide 13: Land sales and commercial deliveries
Land sales and commercial deliveries Accelerated in 4Q22 Land monetisation in FY 2022 € 96.6 m Sales of land and commercial assets in 2018-2022, €m Land sales: €53.3m Commercial Deliveries: €43.3m Total revenues: €330m • Divestment in non-core land assets, accelerated in 4Q 106.8 P&L • Total of 1,52
Slide 14: Commercial assets
Commercial assets Good progress despite segment slowdown Monteburgos 2 delivered in December First contract signed for Oria Other activity • Turn-key project with Catalana Occidente • Signing of a 20,100 sqm (588 studio Sale of commercial land plots(1): apartments) student residence with Vita • 11,2
Slide 15: ESG
ESG Advancing towards our sustainability targets (ESG 24 General Sustainability Strategy) CORPORATE ENVIRONMENT SOCIAL GOVERNANCE • Client focus: ISO 14001 awarded in the activities of S&P Global Sustainability Assessment: Client referral rate of 7.5/10 88% percentile in the REA Real Estate housing
Slide 16: 3. Financial Overview
Jardines de Tetuán (Madrid) 3. Financial Overview
Slide 17: Profit & Loss
Profit & Loss Summary €m FY 2021 FY 2022 % Change Revenues 510.7 519.2 +1.7% Residential Development 472.2 441.5 EBITDA: €45.8m Land sales & Comm dev`t 38.6 77.7 Gross Profit 103.4 97.1 -6.1% Residential Development 105.4 93.7 % gross margin dev`t 22.5% 21.2% Mostly on the Land sales & Comm dev`t (1
Slide 18: Net debt
Net debt Strong financial structure Net debt details Evolution of net debt and LTV ratio €m Dec. 2021 Dec. 2022 300 9.4% 10.0% 8.5% 9.0% Developer loans 55.9 35.2 250 8.0% Corporate debt 338.6 315.7 6.2% 7.0% 200 Gross Financial Debt 394.5 350.9 6.0% 150 5.0% Unrestricted cash 231.3 124.1 4.0% S/T i
Slide 19: Cashflow
Cashflow Summary Cashflow €m FY 2022 + EBITDA 45.8 - Net financial expenses paid (18.8) - Corporate taxes paid (4.9) + Land monetisation: Book value of land sold (1) 31.5 €151.8m COGS of deliveries (land only) (2) 109.2 Gross operating +/- Other working capital changes (3) (5.2) cashflow - Land purc
Slide 20: Portfolio Appraisal
Portfolio Appraisal NAV of €14.04/sh as of Dec.2022 Net Asset Value calculation, € m Net Asset Value, €/sh Total GAV Eur m Dec.2021 Dec.2022 €2,423m Shareholders’ funds 2,079.6 1,805.6 Dividend: 1.65 +/- Capital gains gross 265.4 268.0 +/- Other adjustments 55.2 55.7 -0.9% YoY NAV €1,867m residentia
Slide 21: 4. Closing Remarks
Residencial Aria (Almerimar, Almería) 4. Closing Remarks
Slide 22: Shareholder remuneration
Shareholder remuneration Large dividend payment in 2022 Dividend history € per share Total 2019-2022: €422m or €2.78 /sh €250m paid in 2022 Other actions • €1.65 per share in 2022 • Cancellation of the share buyback €159m (via equity swap) • 26% dividend yield(1) • Following the distribution of the
Slide 23: Closing remarks
Closing remarks Moving forward in our roadmap ✓ Strong coverage in presales and construction Strong visibility for 2023-2024 starts despite the economic slowdown ✓ Higher than previous years ✓ Towards a mid-term target of +2,000 units Continuation in key operational annually targets and strategy ✓ S
Slide 24: Appendices
Residencial Q f2 (Valencia) Appendices
Slide 25: Profit and Loss
Profit and Loss (€m) FY 2021 FY 2022 YoY A Total Revenues 510.7 519.2 1.7% Key comments Residential Development 472.2 441.5 Land Sales & Comm. dev`t 38.6 77.7 Total COGs (407.3) (422.1) Residential Development (367.2) (347.8) A -Total revenues of €519.2m (up 2% YoY) Land Sales & Comm. dev`t (40.2) (
Slide 26: Balance Sheet
Balance Sheet (€m) Dec.21 Dec.22 Key comments Investment Property 417.0 240.4 Other non-current assets 159.5 167.1 Total non-current assets 576.5 407.5 - Total book value of property assets: Inventory 1,844.0 1,842.9 Land 992.5 883.6 • Investment property plus an inventory of WIP & finished product
Slide 27: Portfolio by provinces
Portfolio by provinces Strong presence in the key areas Portfolio details by province Top 6 provinces: 74% of GAV Ranked by % GAV December 2022 GAV (%) # of resi units <1% 3% Fully Under Location Total Resid. Commer Total permitted permitting <1% <1% Madrid 27% 20% 49% 4.5k 0.7k 3.8k Barcelona 17% 1
Slide 28: GAV Breakdown
GAV Breakdown 81% from FP land Portfolio value (GAV) breakdown, € m 23% 556 17% 455 19% 2,423 441 41% Market cap €1.080m (1) 972 GAV Total GAV Resi GAV Resi GAV Resi GAV MVC Active Projects FP non-active NFP Commercial Resi units (k) 28.5 7.7 9.6 10.2 0.9 GAV €/sqm 510 1,037 348 245 701 Ratio GAV to
Slide 29: Build to Rent
Build to Rent c.800 units underway to be delivered between 2023-2024 Recent deal: 178 units in Seville Overall BTR activity • Signed in November 2022 • Total of 10 projects with c.1,000 units signed since 2018 with institutional • Turnkey agreement to deliver 2 buildings already under construction w
Slide 30: Isla Natura / Palmas Altas (Seville)
Isla Natura / Palmas Altas (Seville) MVC’s largest development, a commercial success 146 units 49 units 1,145 17 49 units Active units Active projects 108 units 44% Units sold Units in commercialization 855 (12 projects) 33 units 379 Units under construction 108 units 31 units Units to start 290 com
Slide 31: Client profile
Client profile Location, price, age, motivation and financing (1) Units in commercialization by province MVC Client profile: type of acquisition Price range of sales: k€ per unit ASP units in commercialization % units 81% of offer between €150k-€400k Others 16% Barcelona 20% product for middle class
Slide 32: Data series
Data series Evolution of key operating data # Units 2018 2019 2020 2021 1Q22 2Q22 3Q22 4Q22 FY2022 Pre-sales in the period 888 1,511 1,037 2,093 568 412 361 496 1,837 Backlog of presales (units) 909 2,131 2,568 3,033 3,061 3,061 3,047 3,171 3,171 Backlog of presales (€ m) 271 597 744 850 878 916 936
Slide 33: Shareholding structure
Shareholding structure 49.36% 20.85% CEC / FCyC 20.24%(1) Quasar Others 3.95% 5.60% Notes: (1) Reported to the CNMV on 31/01/2023 33.
Slide 34: Q & A
Ramón Turró render (Barcelona) Q &A