Instone Real Estate Group SE · XETR:INS
Instone Real Estate — H1 2018 Earnings Presentation
27 slides from Instone Real Estate's earnings presentation, Aug 24, 2018
Slide 1: H1 2018 Results Presentation
H1 2018 RESULTS PRESENTATION AUGUST 24, 2018
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 N.V. (THE "COMPANY", TOGETHER WITH ITS SUBSIDIARIES, "IN
Slide 3: H1 2018 wrap-up
H1 2018 wrap-up Positive business development accelerating in Q2 On track to achieve increased outlook for financial year 2018 Strong project portfolio ensuring sustainable profitable growth 3 |
Slide 4: Positive business development
Positive business development 1 Gross profit = Operating performance – cost of materials – cost of sales; 2 Shares outstanding = 36,988,336 4 | Source: Company information
Slide 5: Development of key balance sheet items
Development of key balance sheet items In € million FY 2017 (reported) H1 2018 (reported) Inventories 659.4 377.1 Financial receivables 33.0 0.7 Trade receivables 4.2 137.3 Equity 52.2 243.0 Equity ratio 6.6% 36.5% Financial liabilities 375.7 184.9 Other provisions 50.5 16.4 Trade payables 275.7 65.
Slide 6: KPIs – Acceleration in Q2 2018
KPIs – Acceleration in Q2 2018 In € million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Volume of sales contracts 90.8 120.4 88.5 58.4 30.0 120.0 Volume of new permits 0.0 174.2 203.9 128.0 0.0 173.2 Handovers 17.9 25.8 82.5 75.6 30.3 36.5 Project Portfolio (as of) na 3,039.8 3,374.8 3,410.0 3,408.5 3,589.1
Slide 7: H1 2018 wrap-up
H1 2018 wrap-up Positive business development accelerating in Q2 On track to achieve increased outlook for financial year 2018 Strong project portfolio ensuring sustainable profitable growth 7 |
Slide 8: Increased FY 2018 outlook (IFRS 15 adjusted)
Increased FY 2018 outlook (IFRS 15 adjusted) FY18 outlook FY18 outlook Initial (May 2018) Update, IFRS 15 adj. (Aug. 2018) Revenues €320-330m €370-400m Operating performance >€500m >€500m Volume of concluded sales contracts >€500m >€500m Gross profit margin1 ~28% ~24%3 Adj.2 EBIT €42-48m €48-54m
Slide 9: Ramp-up of revenues in line with planning
Ramp-up of revenues in line with planning (Completed contracts and IFRS 15) • H1 revenues of €144m in line with planning Outlook: • Main revenue contribution in H2 2018 €370-400m from following projects: Project Located Revenue Stallschreiber Berlin ~€60m Strasse / Luisenpark Heeresbäckerei Leipzig
Slide 10: Also volume of concluded sales contracts ramping up as planned
Also volume of concluded sales contracts ramping up as planned • Large projects with sales start this year: Outlook: >€500m Project Location Total exp. sales 100% volume 90% 80% Marienkrankenhaus Frankfurt €210m 70% City-Prag Stuttgart €115m 60% 50% west.side Bonn €178m 40% 30% 20% 10% 0% Q1 Q2 Q3 Q
Slide 11: H1 2018 wrap-up
H1 2018 wrap-up Positive business development accelerating in Q2 On track to achieve increased outlook for financial year 2018 Strong project portfolio ensuring sustainable profitable growth 11 |
Slide 12: Project portfolio remains strong, ensuring profitable growth
Project portfolio remains strong, ensuring profitable growth • 44 projects with 8,863 units pointing to an overall expected sales volume of €3.6bn • 92% of sales volume located in key metropolitan regions • 24% of sales volume already sold • 25% of sales volume already under construction Leipzig Inn
Slide 13: Increased project portfolio driven by new approvals
Increased project portfolio driven by new approvals Development of project portfolio in H1 2018 • New approvals include: • Neckartalterassen, Rottenburg (expected sales volume: ~€105m) • Semmelweisstrasse, Leipzig (expected sales volume: ~€66m) • Completed projects: • Freiburg, Leipzig • Increased e
Slide 14: Project portfolio (projects >€30m sales volume)
Project portfolio (projects >€30m sales volume, representing total: >€3.5bn) Building Sales volume Land plot right Sales Construction Project Location (expected) acquired started started obtained Hamburg NMA gesamt Hamburg 145 Mio. € Essener Straße Hamburg 89 Mio. € Schulterblatt Hamburg 83 Mio. € B
Slide 15: Project portfolio (projects >€30m sales volume)
Project portfolio (projects >€30m sales volume, representing total: >€3.5bn) Building Sales volume Land plot right Sales Construction Project Location (expected) acquired started started obtained Rhine-Main Increased from €197m Wiesbaden-Delkenheim, Lange Seegewann Wiesbaden 89 Mio. € Launched for s
Slide 16: Project portfolio (projects >€30m sales volume)
Project portfolio (projects >€30m sales volume, representing total: >€3.5bn) Building Sales volume Land plot right Sales Construction Project Location (expected) acquired started started obtained Baden-Wurttemberg Launched for sale City-Prag - Wohnen im Theaterviertel Stuttgart 115 Mio. € Wohnen am
Slide 17: Filling up the pipeline to ensure future growth
Filling up the pipeline to ensure future growth Exp. Sales Living space Exp. year of Units Status quo volume (€) (sqm) completion Rottenburg ~105m ~360 ~26,000 2023 Contract signed Hannover Leipzig ~66m ~210 ~14,000 2024 Contract signed Hannover ~110m ~280 ~23,000 2024 Part of contracts signed
Slide 18: IFRS 15 adjusted guidance confirms revenue ramp-up
IFRS 15 adjusted guidance confirms revenue ramp-up Revenues €900m - €1,000m €600m - €700m €500m - €600m €370m - €400m 2018 2019 2020 2021 18 |
Slide 19: Appendix: Additional financial information
APPENDIX ADDITIONAL FINANCIAL INFORMATION
Slide 20: Income statement
Income statement Commentary In €m H1 2017 H1 2018 1 Operating performance consists of booked revenues from realized projects as well as change Total revenue 47.5 143.9 in inventories due to projects currently ramping up. Due to the first-time adoption of IFRS 15 Changes in inventories 44.0 4.5 in 20
Slide 21: Cash flow
Cash flow Commentary In €m FY 2017 H1 2018 5 The net cash flow from operating activities of Instone Real Estate of €7 million in the first Consolidated earnings -31.0 -1.0 Depreciation and amortization 0.4 0.2 half year of 2018 (2017: €-34.5 million) has no significant impact on the financial positi
Slide 22: Balance sheet (1/2)
Balance sheet (1/2) Commentary In €m 5 The decrease in inventories is essentially the result of the first-time adoption of FY 2017 H1 2018 IFRS 15 for the reporting period from 1 January 2018 to 30 June 2018. Taking this new Intangible assets 0.0 0.0 standard into account, the previously as inventor
Slide 23: Balance sheet (2/2)
Balance sheet (2/2) Commentary In €m FY 2017 H1 2018 7 Financial liabilities for the period under review were reduced to €289.8 million (2017: Share capital 0.0 37.0 €375.7 million). This positive change resulted mainly from the repayment of the shareholder Capital reserve 85.4 189.8 loan amounting
Slide 24: Equity statement
Equity statement Commentary In €m 2017 Q2 2018 Q2 10 The distinct rise during the first half of 2018 was primarily due to the Company’s conversion into a public limited company under Dutch law and the subsequent listing 1 January 2.7 52.2 on the Frankfurt stock exchange: The issue of 7,000,000 new s
Slide 25: Net financial debt
Net financial debt In €m 31 December 2017 30 June 2018 Source: Company information based on balance sheet as of 31 March 2018. 25 |
Slide 26: Illustrative snapshot of operating performance / project gross profit
Illustrative snapshot of operating performance / project gross profit (*excluding sales costs) A. Example of a project according to the CC method Revenue and project gross profit realised at project delivery Land acquisition Start of construction (30% sold) Sale completion (100% sold) Delivery In €m
Slide 27: Contact and financial calendar 2018
For any questions please contact: Financial calendar / Events 2018: Thomas Eisenlohr 27 Aug Roadshow Frankfurt Head of Investor Relations 30-31 Aug Roadshow London Instone Real Estate Group N.V. 4-5 Sept Roadshow London Baumstraße 25, 45128 Essen 6-7 Sept Roadshow New York / Boston T +49 201 45355-3
Instone Real Estate Group — H1 2018 Earnings Presentation on 6ix