Investis Holding SA · SIX:IREN
Investis Holding SA — FY2016 Earnings Presentation
31 slides from Investis Holding SA's earnings presentation, March 2017
Slide 1: IR-Presentation Full-Year 2016 Results
Investis Holding SA IR-PRESENTATION FULL-YEAR 2016 RESULTS
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: Agenda
Agenda 1. Over-delivering on IPO promises 2. Key highlights 2016 3. Financials FY 2016 4. New EB members and way forward in Real Estate Services 5. Outlook 6. Q&A 7. Appendix – Strategy – Business Profile – Investment highlights IR-PRESENTATION - FULL-YEAR 2016 RESULTS 3
Slide 4: Over-delivering on promises made during IPO process – Usage of proceeds
Over-delivering on promises made during IPO process – Usage of proceeds Acquisition of the Investis Patrimoine SA minority for CHF 41.4m – for less than anticipated Acquisitions done in Real Estate Services to foster positioning: – Clim Assistance ‒ acquisition as at 31 October 2016 – Hauswartpr
Slide 5: Agenda
Agenda 1. Over-delivering on IPO promises 2. Key highlights 2016 3. Financials FY 2016 4. New EB members and way forward in Real Estate Services 5. Outlook 6. Q&A 7. Appendix – Strategy – Business Profile – Investment highlights IR-PRESENTATION - FULL-YEAR 2016 RESULTS 5
Slide 6: Highlights 2016 – delivered on profitable growth
Highlights 2016 – delivered on profitable growth Investis Group: – Top line growth by +2.9% – Improved operating performance by +26.8% Properties focuses on residential properties (88%) in the mid-market segment in the lake Geneva region with a gross rental yield above market average ‒ High qual
Slide 7: Agenda
Agenda 1. Over-delivering on IPO promises 2. Key highlights 2016 3. Financials FY 2016 4. New EB members and way forward in Real Estate Services 5. Outlook 6. Q&A 7. Appendix – Strategy – Business Profile – Investment highlights IR-PRESENTATION - FULL-YEAR 2016 RESULTS 7
Slide 8: Solid performance in both segments
Solid performance in both segments (CHFm) 2016 Δ in % 2015 2014 1) 2013 1) 2016 Revenues Properties Revenue 161.9 +2.9 157.4 155.6 150.8 Real Estate 24% Services 76% EBITDA before 28.7 -4.0 29.9 32.1 26.8 revaluation/disposals Income from revaluations 46.6 n/a 31.0 10.4 16.6 EBIT 76.4 +26.8 60.2 41.
Slide 9: Property key figures FY 2016
Property key figures FY 2016 (CHFm) FY 16 FY 15 Δ% Property Portfolio …. Revenue from letting of 136 properties – 2,334 residential units 41.9 40.8 +2.7 properties 12% EBITDA 27.3 25.0 +9.1 before revaluations/disposals Revaluations & disposals 49.6 32.1 +54.5 … by main use: EBIT 76.7 56.9 +34.8 88%
Slide 10: Stable operating performance in Properties
Stable operating performance in Properties Portfolio value 981 Portfolio split Rent potential based on Wüest Partner appraisal (CHFm) (CHFm) 1% 12% 1% +16% 857 810 810 CHF 52m 86% CHF 45m +4.1% -5.4% Residential Undeveloped plots of land 2013 2014 2015 2016 Commercial Properties held for sale Curren
Slide 11: Property quality
Robust and well-maintained residential portfolio further expanded in one of Switzerland’s most dynamic regions A robust, large and .… Portfolio structure 90% located in the wealthy and stable Lake Geneva region Year of construction(3) Pre 1951 12% 88% share of residential(1) Post 1970 25% 99% occupa
Slide 12: Real Estate Services key figures FY 2016
Real Estate Services key figures FY 2016 (CHFm) FY 16 FY 15 Δ% Revenue split Construction Mgmt Revenue 136.1 131.3 + 3.7 12% Personnel expenses -86.4 -79.2 -9.1 EBIT 3.9 6.2 -37.2 EBIT margin 2.9% 4.7% Facility Mgmt 32% 56% Property Mgmt Average FTEs 889 839 +6.0 Lower growth of top line in the 2n
Slide 13: Change of financing strategy impacting Financial expenses
Change of financing strategy impacting Financial expenses (CHFm) FY 16 FY 15 % Average interest costs decreased to 2.0% in 2016 (from 2.2% in 2015) Change of the financing strategy resulting in higher EBIT 76.4 60.2 +26.8 financial expenses for 2016: Financial income 2.0 1.3 49.2 – CHF 5.9m from
Slide 14: Sound Balance Sheet prevails – conservative financing strategy
Sound Balance Sheet prevails – conservative financing strategy Balance Sheet (CHFm) 31.12.16 31.12.15 31.12.14 31.12.131) Property Portfolio value +14.5% Total assets to surpass CHF 1 bln for the first time Cash and cash equivalents 53 48 53 48 Properties portfolio 981 857 810 810 Mortgages to
Slide 15: Agenda
Agenda 1. Over-delivering on IPO promises 2. Key highlights 2016 3. Financials FY 2016 4. New EB members and way forward in Real Estate Services 5. Outlook 6. Q&A 7. Appendix – Strategy – Business Profile – Investment highlights IR-PRESENTATION - FULL-YEAR 2016 RESULTS 15
Slide 16: Broadening competencies through expanded EB as at 1.4.2017
Broadening competencies through expanded EB as at 1.4.2017 * EB member The Management of Real Estate Services to be spread across PM and FM Dieter Sommer (CEO of Privera since 2014) and Walter Eberle (CEO of Hauwartprofis since 2009 and Treos since January 2017) both to join the EB Catherine D
Slide 17: Highly entrepreneurial and experienced management
Highly entrepreneurial and experienced 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 Independ
Slide 18: Discontinuing Construction Management as General Contractor
Discontinuing Construction Management as General Contractor Change in business proposition To withdraw as general contractor – considerable risk reduction / exposure – Actual projects will be processed as planed Impact on group financials in 2017, as a result of the above – lower revenues – lo
Slide 19: Agenda
Agenda 1. Over-delivering on IPO promises 2. Key highlights 2016 3. Financials FY 2016 4. New EB members and way forward in Real Estate Services 5. Outlook 6. Q&A 7. Appendix – Strategy – Business Profile – Investment highlights IR-PRESENTATION - FULL-YEAR 2016 RESULTS 19
Slide 20: Acquisition of Hauswartprofis as at 1.1.2017
Acquisition of Hauswartprofis as at 1.1.2017 1) Net assets Goodwill Purchase price 30% 70% CHF 21 m 100% Established 1990 – 240 employees Annual turnover of CHF 18m Above average EBIT margin Will continue to operate under its own name as an independent company but together with Treos under t
Slide 21: Outlook – AGM 27 April 2017
Outlook – AGM 27 April 2017 Board of Directors: All Board Members to stand for re-election 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 2 May 2017 – Value date 4 M
Slide 22: Outlook – solid performance expected for 2017
Outlook – solid performance expected for 2017 Investis Group: Financing to be further optimized – 2nd Bond CHF 140m, issued in February 2017, 2y tenor, 0.25% coupon – Mid-term targets remain unchanged Properties: Further property acquisitions done / in the pipeline Continued cost control Real
Slide 23: Q&A
Q&A IR-PRESENTATION - FULL-YEAR 2016 RESULTS 23
Slide 24: Agenda
Agenda 1. Over-delivering on IPO promises 2. Key highlights 2016 3. Financials FY 2016 4. New EB members and way forward in Real Estate Services 5. Outlook 6. Q&A 7. Appendix – Strategy – Business Profile – Investment highlights IR-PRESENTATION - FULL-YEAR 2016 RESULTS 24
Slide 25: Investis Group is a 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 STRATEGY AND INVESTMENT POLICY Continuation of the buy-and-hold strategy through selected investments in the properties segment Preservation and increase of portf
Slide 26: Investis Properties: Robust residential portfolio in one of the world's most attractive regions
Investis Properties: Robust residential portfolio located in one of the world’s most attractive regions Portfolio valued at CHF 981m – annualised full occupancy property rent at CHF 46.9m Focused on the Lake Geneva region Mainly residential properties 2,334 middle income residential units in 1
Slide 27: Investis Real Estate Services is active throughout Switzerland with well-known local brands
Investis Real Estate Services is active throughout Switzerland with well-known local brands Focus on two activities: Property Management and Facility Management Property Management Facility Management Property Management Caretaking services Co-ownership associations Management Services Cen
Slide 28: Why invest in INVESTIS?
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 Value creation through exe
Slide 29: Investis Group has been an entrepreneurial business since 1994
Investis Group has been an entrepreneurial business since 1994 Entry in Real Estate Successful listing Services business; at SIX Swiss Exchange Consolidation and capitalise on strong active refurbishment property portfolio of the property Investment and portfolio IPO 30th June 2016 formation of a
Slide 30: 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 Renovation of the bathrooms and Stairs 1.9m Residential block built in 1986 kitchens for CHF 1.7m. Additional New lifts for painting for with 40 residential units and two retail energy efficiency renovat
Slide 31: Thank you for your attention!
Thank you for your attention! IR-PRESENTATION - FULL-YEAR 2016 RESULTS 31