Investis Holding SA · SIX:IREN
Investis Holding SA — H1 2016 Earnings Presentation
33 slides from Investis Holding SA's earnings presentation, Sep 14, 2016
Slide 1: Half-Year Results 2016
Half-Year Results 2016 14 September 2016
Slide 2: Disclaimer
Disclaimer This communication contains specific forward-looking statements, beliefs or opinions, including statements with respect to objectives, which are based on current beliefs, expectations and projections about future events and assumptions of the management of Investis Holding SA ("Investis")
Slide 3: Speakers
Speakers Stéphane Bonvin – Member of the BoD and CEO René Häsler – CFO 2016 HALF-YEAR RESULTS 3
Slide 4: Agenda
Agenda 1. Market Environment 2. IPO 3. 2016 Half Year – Financial Review 4. Outlook & Summary 2016 HALF-YEAR RESULTS 4
Slide 5: Market environment: demographics and attractiveness of Geneva and Vaud
Market environment Strong expected demographics and improved attractiveness of cantons Geneva and Vaud due to the Swiss Tax Reform III Improved rankings expected for Geneva and 2015-2026E demographics forecast Vaud among all Swiss cantons (2016-2020) 1) 10.1% Attractiveness of both cantons to impr
Slide 6: Geneva and Vaud show constant undersupply
Vacancy rates in Switzerland (in %) Geneva and Vaud show constant undersupply 4 Geneva / Vaud: 3.5 - Limited construction activity - Scarce free building land 3 - Higher share of renting vs ownership 2.5 2 1.5 average 1.3 1 0.5 0 Geneva Bern Vaud Uri Glarus Schwyz Nidwalden Valais Fribourg Jura Neuc
Slide 7: Development of interest rates in Switzerland
Development of interest rates in Switzerland 10y Swiss government bond interest development 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 14.09.2006 14.09.2007 14.09.2008 14.09.2009 14.09.2010 14.09.2011 14.09.2012 14.09.2013 14.09.2014 14.09.2015 -0.5 -1 Source: Bloomberg 2016 HALF-YEAR RESULTS 7
Slide 8: Prime yield development for selected Swiss residential markets
Prime yield development for selected Swiss residential markets vs 10y Swiss government bond Compression on yields 4.500% 10y Swiss gvt bond Residential Geneva Residential Lausanne 4.000% 3.500% 3.000% 2.500% 2.000% 1.500% spread 2.5-3% 1.000% 0.500% 0.000% 2009.1 2009.3 2010.1 2010.3 2011.1 2011.3 2
Slide 9: Market environment – Swiss Real Estate Service Market
Market environment – Swiss Real Estate Service Market Market will consolidate driven by larger national companies 3’250 – 3’500 companies nation wide with some 17’000 FTEs Market volume approx. CHF 2bln p.a. Segmentation: Small number of larger (national) players Many small businesses with
Slide 10: Agenda
Agenda 1. Market Environment 2. IPO 3. 2016 Half Year – Financial Review 4. Outlook & Summary 2016 HALF-YEAR RESULTS 10
Slide 11: Successful first Half-Year 2016 despite strong management absorption due to IPO
Successful first Half-Year 2016 despite strong management absorption due to IPO Listing on 30 June, 2016 Issuer Investis Holding SA Listing SIX Swiss Exchange (Standard for Real Estate Companies) Issuance Price CHF 53.- Performance in the last 10 weeks of trading + 13.5% at CHF 60.15 on 13 September
Slide 12: Agenda
Agenda 1. Market Environment 2. IPO 3. 2016 Half Year – Financial Review 4. Outlook & Summary 2016 HALF-YEAR RESULTS 12
Slide 13: Higher operating income underlines solid growth
Higher operating income underlines solid growth Overview – Key P&L items HY 2016 Revenues (CHFm) HY 16 HY 15 Δ % Properties Revenue 79.3 77.4 +2.5 Real Estate 23% Services 77% EBITDA before revaluation/disposals 13.0 14.7 -11.6 Income from revaluations 16.7 13.4 +25.1 EBIT 29.7 28.3 +4.9 EBIT margin
Slide 14: Sound Balance Sheet prevails
Sound Balance Sheet prevails Overview – Key Balance Sheet items Balance Sheet (CHFm) 30.6.16 31.12.15 Δ % IPO proceeds included in current assets as closing took place on 4 July 2016 CHF 7.4m of the IPO costs recognized in equity Cash and cash equivalents 40.7 48.0 -15.2 Share capital increase
Slide 15: Enhanced Cash Earnings
Enhanced Cash Earnings Overview – Key cash flow items Cash flow (CHFm) HY 2016 HY 2015 Δ % Cash flow in 2015 diluted by purchase of properties held for sale (CHF 10.3m) Cash flow from operating Lower investment activity in 1st HY 13.1 -0.3 n/a activities Cash dividend of CHF 16.25m – withholdi
Slide 16: Improved FFO to CHF 9.8m
Improved FFO to CHF 9.8m (vs. CHF 6.2m) (in CHFm) 13.1 0.2 0.1 3.6 9.8 Cash flow from Investment in Interest received Interest paid FFO operating activities properties held for sale 2016 HALF-YEAR RESULTS 16
Slide 17: Property key figures HY 2016
Property key figures HY 2016 Property Portfolio value of CHF 875m (+2.1%) (CHFm) HY 16 HY 15 Δ % Property Portfolio Revenue from letting of 20.2 20.5 -1.7 properties 8.7% EBITDA 12.2 13.1 -7.1 before revaluations/disposals EBITDA 29.9 27.7 +7.9 EBIT 29.8 27.6 +8.0 Like-for-like rental increase of
Slide 18: Stable operating performance in Properties
Stable operating performance in Properties Portfolio value Revenue development (CHFm) (CHFm) 20.5 20.2 875 857 5.2 4.9 +4.1% 5.2 5.2 -5.4% 810 810 +1.0% 2013 2014 2015 HY 2016 Revenue Disposal of l-f-l New Revenue HY 2015 properties rental properties HY 2016 increase acquired Portfolio value Gross y
Slide 19: Real Estate Services key figures HY 2016
Real Estate Services key figures HY 2016 Overview (CHFm) HY 16 HY 15 Δ % Revenue split Construction Mgmt Revenue 68.7 62.8 + 9.4 14% Personnel expenses -42.3 -38.8 -9.1 EBIT 1.5 1.8 -21.2 EBIT margin 2.1% 2.9% 55% Property Mgmt Facility Mgmt 31% Headcount (end of period) 1’112 1’047 +6.2 FTEs as of
Slide 20: Higher operating performance despite ongoing expansion of Real Estate Services
Higher operating performance despite ongoing expansion of Real Estate Services EBIT Bridge (CHFm) 1.1 29.7 0.0 3.6 1.9 28.3 3.1 1.1 HY 2015 EBIT Revenues Direct expenses Personnel Other operating Revaluations D&A HY 2016 EBIT expenses expenses and income from disposal of investment properties 2016 H
Slide 21: Agenda
Agenda 1. Market Environment 2. IPO 3. 2016 Half Year – Financial Review 4. Outlook & Summary 2016 HALF-YEAR RESULTS 21
Slide 22: Outlook for FY 2016
Outlook for FY 2016 Nine properties acquired in July / August for roughly CHF 65m which will increase – together with two properties finished in 2nd HY – the annualized full occupancy property rent to CHF 46.2m Barring exceptional circumstances an EBITDA before revaluations and disposals gains i
Slide 23: A compelling investment case for investors
A compelling investment case for investors Why invest in INVESTIS? Largest listed residential portfolio in the Swiss market Robust and well maintained portfolio focused on the Lake Geneva region Low vacancy Pure Swiss player Attractive and stable return profile Financial flexibility to t
Slide 24: Agenda 2017
Agenda 2017 22 March 2017 FY-Results 2017 27 April 2017 AGM, Zurich 2016 HALF-YEAR RESULTS 24
Slide 25: Annex
Annex 2016 HALF-YEAR RESULTS 25
Slide 26: Investis Group has been an entrepreneurial business since 1994
Investis Group has been an entrepreneurial business since 1994 Entry in Real Estate Services business; capitalise on strong property portfolio Consolidation and active refurbishment of the property Investment and formation of a portfolio large property portfolio Establishment of Real Estate Servic
Slide 27: Investis Group legal entities as per 19.7.2016
Investis Group legal entities as per 19.7.2016 Properties Real Estate Services 100% Investis Properties SA Property Management 100% Investis Patrimoine SA 100% 100% 100% Les Résidences Privées SA 100% Privera AG Régie du Rhône SA Régie du Rhône Crans-Montana SA Transimo SA Facility Management 100% 1
Slide 28: Leading Swiss residential property company in the Lake Geneva region
Investis Group is a leading Swiss residential property company in the Lake Geneva region and a national real estate services provider Residential property portfolio 91% located in National real estate Lake Geneva region service provider through 12 locations Properties Real Estate Services Rental i
Slide 29: A synergetic combination providing a wide market footprint and revenue synergies
A synergetic combination providing a wide market footprint and revenue synergies Cross-selling Properties Real Estate Services Cross-selling Cross-selling Network effect for sourcing new investments Integrated service platform allowing for synergies and additional insights into market In-house infor
Slide 30: Investis Properties: Robust residential portfolio
Investis Properties: Robust residential portfolio located in one of the world’s most attractive regions Residential portfolio as per 30 June 2016 Add-on Properties activities Number of residential units 2,219 Development Portfolio value CHF 875m Opportunistic development with high ROS(1) Rental in
Slide 31: Established position with high barriers to entry
Established position with high barriers to entry and differentiated success factors Regulatory restrictions “Lex Koller” effectively blocks foreign buyers from entering the Swiss residential property investment market Limited availability of Limited number of large Swiss residential portfolios Prope
Slide 32: Highly entrepreneurial and experienced management
Highly entrepreneurial and experienced management Board of Directors Riccardo Boscardin Albert Baehny Thomas Vettiger Stéphane Bonvin Independent Chairman Independent member Independent member Executive member Former positions as Non-executive chairman Managing Partner and board Founded Investis in
Slide 33: Thank you for your attention!
Thank you for your attention! 2016 HALF-YEAR RESULTS 33