Investis Holding SA · SIX:IREN

Investis Holding SA — FY2017 Earnings Presentation

36 slides from Investis Holding SA's earnings presentation, Mar 21, 2018

  1. Slide 1: Full-Year 2017 Results

    Investis Holding SA FULL-YEAR 2017 RESULTS IR-PRESENTATION – 21 MARCH 2018 1

  2. 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")

  3. Slide 3: Agenda

    Agenda  Highlights on Group performance and market overview  Details on the performance for the full year 2017 and outlook  Appendix IR-PRESENTATION - FULL-YEAR 2017 RESULTS - 21 MARCH 2018 3

  4. Slide 4: FY 2017 - Highlights

    FY 2017 - Highlights % + 28 Profit for the period % + 184 Net Profit without % revaluation effects 0.7 % Average interest rate + 17 + 18 % % Revenue growth IR-PRESENTATION - FULL-YEAR 2017 RESULTS - 21 MARCH 2018 4

  5. Slide 5: On track to achieve mid-term targets for 2019

    On track to achieve mid-term targets for 2019  Properties: annualised rental income > CHF 50m  Real Estate Services: high-single-digit EBIT margin  Financing: through unsecured senior debt IR-PRESENTATION - FULL-YEAR 2017 RESULTS - 21 MARCH 2018 5

  6. Slide 6: Real Estate Market in Lake Geneva Region remains top tier

    Real Estate Market in Lake Geneva Region remains top tier Source: UBS Real Estate Focus 2018 IR-PRESENTATION - FULL-YEAR 2017 RESULTS - 21 MARCH 2018 6

  7. Slide 7: Real Estate Market in Lake Geneva Region remains top tier

    Real Estate Market in Lake Geneva Region remains top tier The 50 most populous municipalities in Switzerland: Growth in population (2006-2015) and population density (number of residents per hectare of settlement area, 2015) in % Growth in population 2006-2015 35 30 25 20 15 10 5 Population density

  8. Slide 8: Highlights on Lake Geneva Real Estate Market

    Highlights on Lake Geneva Real Estate Market High demand persistent for affordable apartments in City Centre  Continuing positive immigration – On Swiss level +53,221 in 2017 vs +60,262 in 2016 – For Geneva +2,738 in 2017 vs +1,360 in 2016  2,169 new apartments built in Geneva +1% to a total of 23

  9. Slide 9: Main achievements since IPO

    Main achievements since IPO  Development of the property portfolio – Portfolio value up 28% since IPO to CHF 1.1 bln – CHF 3171) invested since 30.6.2016 – Annualised full occupancy property rent increased to > CHF 55m from CHF 42m (June 2016) – Revaluation gains: 2016: CHF 47m / 2017: CHF 25m – Co

  10. Slide 10: Agenda

    Agenda  Highlights on Group performance and market overview  Details on the performance for the full year 2017 and outlook  Appendix IR-PRESENTATION - FULL-YEAR 2017 RESULTS - 21 MARCH 2018 10

  11. Slide 11: Main developments in 2017

    Main developments in 2017  Investis Group: – Top line growth by +17%, mainly driven by organic growth, investments in Properties and acquisitions in Facility Services – Substantial improvement of operating performance; EBITDA before revaluations/disposals +30% – Further reduction of mortgage exposu

  12. Slide 12: Investis Group: Solid performance in Properties, operating profit improvement in Services

    Investis Group: Solid performance in Properties – substantial operating profit improvement in Services (CHFm) FY 17 FY 16 Δ in % FY 2017 Revenues Revenue 190.0 161.9 +17.3 24% EBITDA 37.3 28.7 +30.0 before revaluation/disposals FY 16 76% Income from revaluations 25.0 46.6 -46.4 EBIT 60.9 76.4 -20.3

  13. Slide 13: Top line driven by organic growth and acquisitions

    Top line driven by organic growth and acquisitions (CHFm) 3.9 190.0 5.8 18.0 2.6 5.6 161.9 2016 Properties Property HWP Facility Services Construction 2017 (l-f-l +1.9%) Management (organic) Management (organic) (exit) IR-PRESENTATION - FULL-YEAR 2017 RESULTS - 21 MARCH 2018 13

  14. Slide 14: FY 2017 - Highlights Properties

    FY 2017 - Highlights Properties % CHF 25 Revaluation gains m 73 % Improved Gross margin + 13 % Revenue growth + 1.9 + 18 % Like-for-like rental growth % IR-PRESENTATION - FULL-YEAR 2017 RESULTS - 21 MARCH 2018 14

  15. Slide 15: Substantial increase in rental income

    Substantial increase in rental income (CHFm) FY 17 FY 16 Δ% Property Portfolio 139 properties – 2,508 residential units Revenue from letting of 47.5 41.9 +13.5 properties 12% EBITDA 32.4 27.3 +18.7 … by main use: before revaluations/disposals Revaluations & disposals 25.6 49.6 -48.3 EBIT 58.0 76.7 +

  16. Slide 16: Properties: Adding value by expanding the portfolio

    Properties: Adding value by expanding the portfolio A robust, large and .… Rent potential based on Wüest Partner appraisal 90% located in the wealthy and stable Lake Geneva region (CHFm) 88% share of residential +13% 99% underlying occupancy (96.5% including renovation and strategic vacancies) Curre

  17. Slide 17: FY 2017 - Highlights Real Estate Services

    FY 2017 - Highlights Real Estate Services % CHF 7.8 m EBIT doubled vs. 2016 5.3 % EBIT margin + 8.5 Revenue growth % + 126 CHF+ 18 % m Rents under Management (PM) IR-PRESENTATION - FULL-YEAR 2017 RESULTS - 21 MARCH 2018 17

  18. Slide 18: Real Estate Services – developments above expectations in 2nd HY

    Real Estate Services – developments above expectations in 2nd HY Revenue split (CHFm) FY 17 FY 16 Δ% 1% Revenue 147.6 136.1 +8.5 Direct expenses -14.2 -25.3 +44.0 53% 46% Personnel expenses -101.9 -86.4 -18.0 EBIT 7.8 3.9 +101.3 EBIT margin 5.3% 2.9% Property Mgmt Facility Services Construction Mgmt

  19. Slide 19: Real Estate Services active nationwide with well-known local brands

    Real Estate Services active nationwide with well-known local brands Focus on two activities: Property Management and Facility Services Property Management Facility Services  Property management  Caretaking services  Co-ownership associations  Management services  Center management  Cleaning se

  20. Slide 20: Considerable lower interest expenses and partial reversal of deferred taxes

    Investis Group: Considerable lower interest expenses and partial reversal of deferred taxes (CHFm) FY 17 FY 16 Δ%  Substantial decrease of average interest rate to 0.7% (from 2.0% in 2016) – Exit from mortgages and interest derivatives EBIT 60.9 76.4 -20.3 Financial income 0.6 2.0 -68.3  Partial r

  21. Slide 21: Change in financing strategy – sound Balance Sheet prevails

    Change in financing strategy – sound Balance Sheet prevails Balance Sheet (CHFm) 31.12.17 31.12.16 Δ%  Property Portfolio value +31% since IPO Cash and cash equivalents 51 53 -4.5  Mortgages to be replaced by unsecured senior debt financing (i.e. no preferred bank debts (mortgages)) Properties por

  22. Slide 22: Outlook – mid-term targets 2019 confirmed

    Outlook – mid-term targets 2019 confirmed Post Closing Events  Acquisition of a portfolio in GE for CHF 108m as published For the Mid-term 2019  Targets confirmed: – Properties: annualised rental income > CHF 50m – Real Estate Services: High single digit EBIT margin – Financing: through unsecured

  23. Slide 23: Outlook – AGM 20 April 2018

    Outlook – AGM 20 April 2018 Board of Directors  All Board Members to stand for re-election Dividend  Distribution from statutory capital contribution reserves of CHF 2.35 per registered share or CHF 30.08 million recommended to shareholders – Free of withholding tax – Ex-date 24 April 2018 – Value

  24. Slide 24: Why invest in INVESTIS? Value proposition

    A compelling investment case for investors – why invest in INVESTIS? VALUE PROPOSITION PROPERTIES REAL ESTATE SERVICES Pure Swiss Player Largest listed residential portfolio in the Swiss market Nation wide service with own local offices Robust and well maintained portfolio focused on the Top-tier Pr

  25. Slide 25: Q&A

    Q&A IR-PRESENTATION - FULL-YEAR 2017 RESULTS - 21 MARCH 2018 25

  26. Slide 26: Agenda

    Agenda  Highlights on Group performance and market overview  Details on the performance for the full year 2017 and outlook  Appendix IR-PRESENTATION - FULL-YEAR 2017 RESULTS - 21 MARCH 2018 26

  27. Slide 27: Major development projects

    Major development projects are: Hérémence Time of construction: 2016-2026 Total costs: CHF 90m (current project) Land size: 25’088 m2 To be built: 1 Hotel (60 rooms) 1 Spa area (approx. 3’300 m2) 5 Chalets (individual) 7 buildings with 99 apartments to be sold individually or en bloc Ownership: Inve

  28. Slide 28: Investis Group is a leading Swiss residential property company

    Investis Group is a leading Swiss residential property company in the Lake Geneva region and a national real estate services provider STRATEGY AND INVESTMENT POLICY  Continuation of the buy-and-hold strategy through selected investments in the properties segment  Preservation and increase of portf

  29. Slide 29: Investis Group has been an entrepreneurial business since 1994

    Investis Group has been an entrepreneurial business since 1994 1994 Foundation  Foundation of «Compagnie Foncière de la Cité» with own funds 1994 – Investment and formation of a large  Accumulation of residential properties in the Lake Geneva region 2005 property portfolio mainly through reinvestm

  30. Slide 30: Entrepreneurial Management

    Entrepreneurial Management Board of Directors Executive Board Riccardo Boscardin Stéphane Bonvin Chairman CEO Investis Group Independent member Head of Properties Member of the Audit and Compensation Committee Albert Baehny René Häsler Vice-Chairman CFO Investis Group Independent member Chairman of

  31. Slide 31: Organisation

    Organisation IR-PRESENTATION - FULL-YEAR 2017 RESULTS - 21 MARCH 2018 31

  32. Slide 32: Real Estate Market in Lake Geneva Region remains top tier

    Real Estate Market in Lake Geneva Region remains top tier Dynamic in the rental apartments market in the most populous regions of Switzerland: Vacancy rate (2017) and new building permissions change between 2Q 2015 and 2Q 2017 in % in % 10 Vacancy rate 8 6 4 Avg Switzerland: 2.4% 2 Building permissi

  33. Slide 33: Regional indicator for rental apartments

    Highlights on Lake Geneva Real Estate Market Regional indicator for rental apartments Structurally deficit in supply Land lord market Tends towards land lord market Tends towards tenant market Tenant market Structurally supply surplus IR-PRESENTATION - FULL-YEAR 2017 RESULTS - 21 MARCH 2018 33

  34. Slide 34: Yield comparison for apartment buildings vs 10y gvt bond

    Yield comparison for apartment buildings vs 10 y gvt bond – highest yields in Geneva in % 4 3 2 1 0 2007 08 09 10 11 12 13 14 15 16 2017 Geneva Zurich 10y Swiss Government Bond Source: Wüest Partner IR-PRESENTATION - FULL-YEAR 2017 RESULTS - 21 MARCH 2018 34

  35. Slide 35: Case study: Buy and hold strategy / Rue du Nant 30 – Geneva

    Case study: Buy and hold strategy / Rue du Nant 30 – Geneva Acquisition in December 1998 for CHF 1.9m Renovation of Additional energy Stairs Residential block built in 1986 with bathrooms and efficiency renovation New lifts painting 40 residential units and two retail units kitchens works 1998 2012

  36. Slide 36: Thank you for your attention!

    Thank you for your attention! IR-PRESENTATION - FULL-YEAR 2017 RESULTS - 21 MARCH 2018 36

Investis Holding — FY2017 Earnings Presentation on 6ix