Neinor Homes SA · BME:HOME
Neinor Homes SA — Q1 2018 Earnings Presentation
34 slides from Neinor Homes SA's earnings presentation, May 9, 2018
Slide 1: Results Presentation
May 9th, 2018 eo sts Neinor .ou:s Construimos casas pensando en personas. | eS [ Results Presentation Atria Homes Madrid (2019 Delivery)
Slide 2: Disclaimer
DISCLAIMER This Presentation has been prepared by Neinor Homes, S.A. (“Neinor”) for information purposes only and it is not regulated information or information which has been subject to prior registration or control by the Spanish Securities Market Commission. “Presentation” means this document, it
Slide 3: Today's Agenda
TODAY´S AGENDA Contents Member of: 01 Business Review Juan Velayos Lluis Chief Executive Officer 02 Financial Overview 03 Non-Financial Reporting Jordi Argemí García Chief Financial Officer 04 Q3 Investor Days 05 Q&A Juan Gómez Vega Chief Investor Relations Officer 06 Appendix
Slide 4: Atria Homes – Madrid (Center)
Atria Homes – Madrid (Center) 4
Slide 5: Executive Summary
EXECUTIVE SUMMARY Deliveries 2018 All 14 sites on track 2018 On track to deliver c. 1,000 units 1 finished, 13 working on enclosures/façades Deliveries 2019 All licenses received, all 31 sites WIP* On track to deliver c. 2,000 units Adequate site progress: 6 sites in façade works / 7 structure works
Slide 6: Ramp-up: Zoom into 2018 Deliveries
RAMP-UP: ZOOM INTO 2018 DELIVERIES 2018 1,000+ UNITS UNDER CONSTRUCTION Expected Delivery Calendar Strong Revenue Visibility of 2018 Deliveries ON TRACK TO DELIVER c. 1,000 UNITS IN 2018 90%+ of 2018 deliveries pre-sold Company focused on execution and confident on meeting deliveries targets Remaini
Slide 7: Ramp-up: Zoom into 2019 Deliveries
RAMP-UP: ZOOM INTO 2019 DELIVERIES 2019 2,000+ UNITS UNDER CONSTRUCTION Expected Delivery Calendar Strong Revenue Visibility of 2019 Deliveries ON TRACK TO DELIVER c. 2,000 UNITS IN 2019 • All licenses have been secured 60%+ of 2019 deliveries pre-sold • Sites in initial works, including Sant Just I
Slide 8: Zoom into 2020 & 2021 Deliveries
ZOOM INTO 2020 & 2021 DELIVERIES 2020-2021 KEY ACTIONS IMPLEMENTED TO SECURE 2020 DELIVERIES VISIBILITY INTO 2020 AND 2021 KEY ACTIONS FOR ON-TIME DELIVERY ALREADY IMPLEMENTED 5,500+ LAUNCHED UNITS FOR 2020 & 2021 DELIVERIES C. 4,000 UNITS TO BE DELIVERED IN 2020 5,500+ units launched 90%+ WITH LICE
Slide 9: €828m of Sales Revenue Secured
€828m OF SALES REVENUE SECURED Revenues 1,000+ UNITS STARTED PRE-SELLING IN Q1 – 3,000+ TO START DURING THE REST OF THE YEAR € 82m+ NET GROWTH IN THE ORDER BOOK IN Q1 294 UNITS (€98M) PRE-SOLD IN Q1 c. 80% of order book secured 2,494 units in pre-order book (€828m) - ASP €332k 900 through private co
Slide 10: Construction on Track
CONSTRUCTION ON TRACK Operations DISCIPLINE ON THE COST-AND-TIMING SIDE OF MARGIN PROTECTION SPLIT OF WIP ADVANCE 44(1) SITES IN CONSTRUCTION 3,000+ units 50 On track to meet ‘18 and ’19 deliveries 45 2 (1) 1 40 CONSTRUCTION ON TRACK 35 19 30 C. €430M CAPEX CONTRACTED Sites 25 44 C. 1% BELOW BUDGET
Slide 11: c.28% Expected Gross Margin on WIP
Margin C.28% EXPECTED GROSS MARGIN ON WIP Protection COMPANY FOCUSED ON MARGIN PROTECTION EXPECTED GROSS MARGIN ON WIP BY REGION C.28% c. 28% EXPECTED GROSS MARGIN(1) ON WIP North ON 44 SITES UNDER CONSTRUCTION East CUMULATIVE INCREASE OF C. 2% SINCE IPO ABSOLUTE GAIN OF C.€20M Centre SALES PRICES O
Slide 12: Introducing the Strategic Land Concept in Spain
INTRODUCING THE STRATEGIC LAND CONCEPT IN SPAIN Land Bank FOCUS CONTINUES TO BE FULLY PERMITTED LAND LAND ACQUISITION PROGRAM FOCUS IN 2018 LAND BANK SNAPSHOT – C. 13,200 UNITS(1) North East c.2,800 units ACQUISITION OF FULLY PERMITTED LAND c. 2,000 units 21% 15% CHERRY-PICKING HIGH QUALITY FULLY PE
Slide 13: Ancillary Businesses in Line with Expectations
ANCILLARY BUSINESSES IN LINE WITH EXPECTATIONS Ancillary Businesses LEGACY AND SERVICING GENERATING STEADY CASH FLOWS LEGACY SERVICING €7.5m sales in Q1(1), in line with budget 12% gross margin on book values €1.5bn AUM Stable AuM given asset boarding performed as expected compensating for registere
Slide 14: Funding: Self Financed Ramp-Up
Funding FUNDING: SELF FINANCED RAMP-UP Ramp-Up Sufficient cash generation to finance ramp-up and repay corporate & land debt CASH GENERATION 2018-2019 2018 Needs: <60M€ (delivery 2021) SELF FINANCED BUSINESS PLAN 2019 Needs: < 140M€ (delivery 2022) Current balance sheet allows for acquiring >2.200#
Slide 15: Alquerías Homes – Valencia (Levante)
Alquerias – Levante - JGD Alquerías Homes – Valencia (Levante) 15
Slide 16: P&L: In Line with Expectations
Financials P&L: IN LINE WITH EXPECTATIONS LEGACY AND SERVICING REPRESENTING MOST REVENUES – DELIVERIES TO START IN Q2 Summary P&L (in €M) €M Q1 2018 Revenues 19,1 €19M REVENUES Gross Margin 9,7 Legacy sales €7.5m* / Development €4.1m / Servicing €7.5m Gross Margin (%) 50,8% *Does not include €0.5m o
Slide 17: CF: Focus on Inventory Investment
CF: FOCUS ON INVENTORY INVESTMENT Financials A SELF-FINANCED BUSINESS PLAN STARTS TO RAMP-UP CAPEX INVESTMENTS Summary Cash Flow (in €M) €M Profit (Loss) before Tax1 Q1 2018 -7,9 MAXIMUM EQUITY OPTIMIZATION Adjustments 4,7 Amortization 0,2 Finance Costs/Revenues 2,3 LAND ACQUISITION FINANCED MAINLY
Slide 18: BS: Growing Inventories
Financials BS: GROWING INVENTORIES CORE BUSINESS REFLECTED IN THE BALANCE SHEET (NOW 94% OF TOTAL STOCK) Summary Balance Sheet (in € m) €M Q1 2018 FY 2017 Change €1.3BN BALANCE SHEET PPE 2,3 1,9 0,5 24,6% Investment Property 1,3 1,6 -0,3 -21,2% Other Non-Current Assets 1,9 1,6 0,3 17,2% Non-Current
Slide 19: Net Debt: Prudent Leverage Management
NET DEBT: PRUDENT LEVERAGE MANAGEMENT Financials FOCUS ON CAPEX LOANS AND POTENTIAL CORPORATE DEBT REPAYMENT Net Debt (in € m) €M Q1 2018 FY 2017 Change Gross Debt 462,6 417,7 45,0 10,8% NET DEBT €441M Non-Current Bank Borrowing 17,9 17,9 0,0 0,0% Increase mostly due to deferred acquisition price Co
Slide 20: Plaza Europa 34 Homes – Hospitalet, Barcelona (East)
Plaza €opa 38 Homes – Hospitalet, Barcelona (East) 20
Slide 21: Continuing with the Sector Transformation
CONTINUING WITH THE SECTOR TRANSFORMATION COMPANY GETS “FORO DE BUEN GOBIERNO” AWARD – 4 NEINOR STORES LAUNCHED Corporate Governance / New Board Members appointed by shareholder Adar Capital Partners (ACP) New significant Shareholder: ACP increased its stake to over 28%. A shareholder since the IPO
Slide 22: Q3 Investor Days
04! Q3 Investor Days Can Mates Homes IIl Sant Cugat, Barcelona (East)
Slide 23: Company Will Host Investor Days in Q3
COMPANY WILL HOST INVESTOR DAYS IN Q3 A COMPREHENSIVE TOUR AROUND THE COUNTRY WITH CENTRAL AND REGIONAL MANAGEMENT Contact the Investor Relations team for Company to host Investor Days on the week of more information or to register your interest in 24th September 2018. Exact dates TBC participating
Slide 24: Amara Homes
Amara Homes Las Rozas, Madrid (Center)
Slide 25: Amara Homes – Las Rozas, Madrid (Center)
Amara Homes – Las Rozas, Madrid (Center) 25
Slide 26: Ramp-up: Zoom into 2018 Deliveries
RAMP-UP: ZOOM INTO 2018 DELIVERIES 2018 THE 14 SITES EXPECTED TO BE DELIVERED IN 2018 NORTH Development URDULIZ HOMES Development LANDAKO HOMES Development SAN ROKE HOMES Development IRUN HOMES Region North Region North Region North Region North Units 36 Units 51 Units 76 Units 38 Pre-sales 100% Pre
Slide 27: Ramp-up: Zoom into 2018 Deliveries
RAMP-UP: ZOOM INTO 2018 DELIVERIES 2018 THE 14 SITES EXPECTED TO BE DELIVERED IN 2018 EAST Development PORT FORUM HOMES II Development DIAGONAL 119 HOMES Development CAN MATES HOMES Development LA MARINA DE BADALONA Region East Region East Region East Region East Units 86 Units 32 Units 45 Units 180
Slide 28: Ramp-up: Zoom into 2019 Deliveries
RAMP-UP: ZOOM INTO 2019 DELIVERIES 2019 THE 31 SITES EXPECTED TO BE DELIVERED IN 2019 NORTH Development GOIEGI HOMES Development URBAN HOMES Development ARBAIZENEA HOMES Development DESIGN HOMES Region North Region North Region North Region North Units 36 Units 39 Units 48 Units 28 Pre-sales 94% Pre
Slide 29: Ramp-up: Zoom into 2019 Deliveries
RAMP-UP: ZOOM INTO 2019 DELIVERIES 2019 THE 31 SITES EXPECTED TO BE DELIVERED IN 2019 NORTH Development ABRA HOMES Development NATURA HOMES Development LEOIANDI HOMES Region North Region North Region North Units 105 Units 34 Units 62 Pre-sales 70% Pre-sales 21% Pre-sales 52% Expected Delivery H2 201
Slide 30: Ramp-up: Zoom into 2019 Deliveries
RAMP-UP: ZOOM INTO 2019 DELIVERIES 2019 THE 31 SITES EXPECTED TO BE DELIVERED IN 2019 EAST Development PLAÇA EUROPA HOMES Development VOLLPALLERES HOMES II Development CAN MATES HOMES II Development LA CATALANA R-9 Region East Region East Region East Region East Units 92 Units 48 Units 50 Units 54 P
Slide 31: Ramp-up: Zoom into 2019 Deliveries
RAMP-UP: ZOOM INTO 2019 DELIVERIES 2019 THE 31 SITES EXPECTED TO BE DELIVERED IN 2019 CENTER Development ATRIA HOMES Development VIA HOMES Development ALEA HOMES Development PRADO HOMES Region Center Region Center Region Center Region Center Units 148 Units 70 Units 86 Units 70 Pre-sales 97% Pre-sal
Slide 32: Ramp-up: Zoom into 2019 Deliveries
RAMP-UP: ZOOM INTO 2019 DELIVERIES 2019 THE 31 SITES EXPECTED TO BE DELIVERED IN 2019 SOUTH EAST Development ALMIJARA HOMES Development TEATINOS HOMES Development CAÑADA HOMES Development ALBORADA HOMES(2) Region South East Region South East Region South East Region South East Units 104 Units 115 Un
Slide 33: Zoom into the €194M Strategic Land Acquisitions
ZOOM INTO THE €194M STRATEGIC LAND ACQUISITIONS Land Bank 3 DEALS(1) SECURING 1,400+ UNITS - € 17M PAID UPFRONT A B A B B C Land plot located in Biscay for the development of c. 200 units Land plot located in Biscay suitable for the development of c. 20 units C A C C Land in Málaga suitable for deve
Slide 34: Riverside Homes
Riverside Homes Madrid (Center)