Instone Real Estate Group SE · XETR:INS

Instone Real Estate — 9M 2019 Earnings Presentation

28 slides from Instone Real Estate's earnings presentation, Nov 26, 2019

  1. Slide 1: 9M 2019 Results Presentation

    9M 2019 RESULTS PRESENTATION 26 NOVEMBER 2019

  2. 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 AG (THE "COMPANY", TOGETHER WITH ITS SUBSIDIARIES, "INST

  3. Slide 3: Table of Contents

    Table of Contents 01 | Key Achievements 02 | Portfolio Overview 03 | 9M 2019 Financial Performance 04 | Outlook 05 | Appendix 3 |

  4. Slide 4: Key Achievements

    Key Achievements  Increased volume of new permits to €1,017m and project portfolio to €5.6bn exp. sales volume y-t-d  Since 30 June 2019, signed 4 forwards sales with total €815m expected sales volume: „Niederkasseler Lohweg“ (Dusseldorf), „Westville“ (Frankfurt/Main), „Siemens Areal / Schönhofvie

  5. Slide 5: Table of Contents

    Table of Contents 01 | Key Achievements 02 | Portfolio Overview 03 | 9M 2019 Financial Performance 04 | Outlook 05 | Appendix 5 |

  6. Slide 6: Development of Project Portfolio

    New projects (YTD 2019): Project Exp. sales volume Exp. Units Development of Project Portfolio Hamburg / Rothenburgsort €182m 716 Herrenberg III / Schäferlinde €56m 141 Project portfolio (exp. sales volume) Leipzig / Rosa-Luxemburg-Strasse €116m 330 Nuremberg / Seetor €103m 199 €362m ~ €5,6bn Nuremb

  7. Slide 7: Project Portfolio (as of 30/09/2019)

    Project Portfolio (as of 30/09/2019) Total portfolio by region Volume of sales contracts by customer type Total portfolio by development status Total portfolio by building right status (as of 30/09/19; based on sales volume) (for the period 01/19 - 09/19) (as of 30/09/19; based on sales volume) (as

  8. Slide 8: Table of Contents

    Table of Contents 01 | Key Achievements 02 | Portfolio Overview 03 | 9M 2019 Financial Performance 04 | Outlook 05 | Appendix 8 |

  9. Slide 9: 9M 2019 Results of Operations

    9M 2019 Results of Operations Results of Operations (€m, adj.*) • Gross profit margin of 32.7% reflects exceptionally high 9M 2019 9M 2018 Delta share of revenue contribution from high margin projects in Revenues 302.4 222.5 35.9% first nine month 2019 Project cost -203.5 -162.7 25.1% €m 9M 2019 9M

  10. Slide 10: Revenue Recognition and Volume of Sales Contracts (illustrative)

    Revenue Recognition (illustrative) Volume of Sales Contracts (illustrative) Condominium Sale Forward Sale from construction starts: 6 projects from construction starts:1 project from condominium sale: 2 projects from condominium sale: 1 project from forward sales:2 projects from forward sales: 5-7 p

  11. Slide 11: Operating Cash Flow and Leverage

    Operating Cash Flow Leverage In € million 9M 2019 9M 2018 In € million 9M 2019 FY 2018 EBITDA 59.7 21.0 Corporate debt 171.7 66.1 Other non-cash items -2.8 -2.8 Project related debt 279.8 199.5 Taxes paid -10.2 -10.9 Financial debt 451.5 265.5 1 Change in working capital -78.6 -35.1 - Cash and cash

  12. Slide 12: Table of Contents

    Table of Contents 01 | Key Achievements 02 | Portfolio Overview 03 | 9M 2019 Financial Performance 04 | Outlook 05 | Appendix 12 |

  13. Slide 13: Confirmed FY 2019 Outlook and Midterm Revenue Guidance

    Confirmed FY 2019 Outlook and Midterm Revenue Guidance Outlook FY 2019 Revenue (adj.) Guidance FY 2019 - 2022 € million Previous (03/19) New (09/19) Revenues (adj.) 500 - 550 700 - 750 Gross Profit Margin (adj.) ~28% ~24% EBIT (adj.) 85 - 100 110 - 125 Volume of sales contracts 450 - 550 >1,100 Ther

  14. Slide 14: Table of Contents

    Table of Contents 01 | Key Achievements 02 | Portfolio Overview 03 | 9M 2019 Financial Performance 04 | Outlook 05 | Appendix 14 |

  15. Slide 15: Project Cost and Platform Cost

    Cost of materials cost of land incl. incidental costs Non-deductible 23.3% input tax 31.5% shell works Q3 2019 €k roof and facade Cost of materials -286,251 works 8.8% interior works Project Changes in inventories +87,344 technical building 8.2% equipment Cost Indirect sales cost -1,778 10.4% others

  16. Slide 16: Income statement (reported)

    Income statement (reported) Commentary In €m 9M 2019 9M 20181 1 For the nine months to 30 September 2019, the Instone Group significantly increased its year 1 Total revenue 296.4 210.2 on year revenues to €296.4 million (previous year: €210.2 million). New sales contracts Changes in inventories 86.8

  17. Slide 17: Condensed balance sheet

    Condensed balance sheet Commentary In €m 30/09/2019 FY 2018 6 As at 30 September 2019, inventories increased to €547.8 million (31 December 2018: Non-current assets 21.3 2.8 €404.4 million) construction progress as well as land acquisitions. Approximately €70.1 of inventories are related to the firs

  18. Slide 18: Condensed cash flow statement

    Condensed cash flow statement Commentary In €m 9M 2019 9M 20181 10 Operating cash flow for the nine months to 30 September 2019 amounted to €- 32.0 million Consolidated earnings 38.5 -10.0 (previous year: €1.7 million). The number includes approximately €93.7 million in relation to Other non-cash in

  19. Slide 19: Financing Structure Provides Basis for Growth

    Financing Structure Provides Basis for Growth Financing structure • Corporate level refinancing largely completed Term loan Promissory note Syndicated RCF €200m €98.5m 3 years  3/5 years  3 years • • €200m term loan signed in Q2 Successful completion of new €98.5m promissory note P&L sharing agree

  20. Slide 20: Project Portfolio Key Figures

    Project Portfolio Key Figures In € million Q3 19 Q2 19 Q1 19 Q4 18 Q3 18 Q2 18 Q1 18 Volume of sales contracts 183.1 69.0 62.8 206.2 104.2 120.0 30.0 Project Portfolio (as of) 5,384.1 5,091.7 4,790.2 4,763.2 3,620.3 3,589.1 3,408.5 thereof already sold (as of) 1,261.1 1,128.7 1,061.1 998.2 971.9 867

  21. Slide 21: 9M 2019 – Revenue Contribution (Top Projects)

    9M 2019 – Revenue Contribution (Top Projects) Project City Adj. Revenues (€m) Quartier Stallschreiber Strasse / Luisenpark Berlin 68.2 Wohnen am Kurpark / Wilhelm IX Wiesbaden 40.3 Marienkrankenhaus Frankfurt/Main 34.5 Heeresbäckerei Leipzig 30.5 City Prag – Wohnen im Theaterviertel Stuttgart 24.6 F

  22. Slide 22: 9M 2019 – Volume of Concluded Sales Contracts (Top Projects)

    9M 2019 – Volume of Concluded Sales Contracts (Top Projects) Project City Volume (€m) Units Niederkasseler Lohweg Dusseldorf NA1 221 Quartier Stallschreiber Strasse / Luisenpark Berlin 55.1 100 Marienkrankenhaus Frankfurt/Main 40.5 42 Sebastianstrasse / Schumanns Höhe Bonn 26.6 61 Wohnen am Kurpark

  23. Slide 23: 9M 2019 – Construction Launches

    9M 2019 – Construction Launches Project City Exp. Sales Volume (€m) Units City-Prag – Wohnen im Theaterviertel Stuttgart ~110 ~250 Sebastianstrasse / Schumanns Höhe Bonn ~68 ~185 Schwarzwaldstrasse Herrenberg ~48 ~115 West.side Bonn ~35 ~115 Marina Bricks Regensburg ~29 ~50 Theaterfabrik Leipzig ~20

  24. Slide 24: Sales Offer as of 30/09/19 (Top Projects)

    Sales Offer as of 30/09/19 (Top Projects) Project City Sales volume (€m) Units Marienkrankenhaus Frankfurt 109.9 92 Beethovenpark Augsburg 101.4 309 Schulterblatt „Amanda“ Hamburg 77.2 100 Quartier Stallschreiber Strasse / Luisenpark Berlin 33.6 40 Schwarzwaldstrasse Herrenberg 33.5 78 Others ~94.4

  25. Slide 25: Project Portfolio as of 30/09/19 (Hamburg, Berlin, NRW)

    Project Portfolio as of 30/09/19 (projects >€30m sales volume, representing total: ~€5.1bn) Building Sales volume Land plot right Sales Construction Project Location (expected) acquired started started obtained Hamburg Schulterblatt "Amanda" Hamburg 94 Mio. € Kösliner Weg Norderstedt-Garstedt 102 Mi

  26. Slide 26: Project Portfolio as of 30/09/19 (Rhine-Main, Leipzig)

    Project Portfolio as of 30/09/19 (projects >€30m sales volume, representing total: ~€5.1bn) 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 Frankf

  27. Slide 27: Project Portfolio as of 30/09/19 (Baden-Wurttemberg, Bavaria)

    Project Portfolio as of 30/09/19 (projects >€30m sales volume, representing total: ~€5.1bn) 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. € Franklin Mann

  28. Slide 28: Financial Calendar 2020 / Investor Relations Contact

    Financial Calendar 2020 March 19, 2020 Publication of annual report 2019 May 28, 2020 Publication of quarterly group statement as of 31 March 2020 June 9, 2020 Annual General Meeting August 27, 2020 Publication of group interim report as of 30 June 2020 November 26, 2020 Publication of quarterly gro

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