S O L O N E I E N D O M W I N N E R O F T H E O S L O A R C H I T E C T U R E AWA R D

Transcription

1 Side 1 S O L O N E I E N D O M W I N N E R O F T H E O S L O A R C H I T E C T U R E AWA R D «An outstanding example of innovation and construction» - The jury, Oslo Architecture Award 2016

2 SOLON IN BRIEF Side 2 Residential real estate developer established in 2006 Specialized in projects from 40 to 150 units in Oslo and surrounding area Current portfolio consists of ~1,900 units

3 BUSINESS OVERVIEW WHOLLY OWNED PROJECTS JOINT VENTURES Apartment complexes with typically units per project Detached houses located in the "gardens" of existing villa areas, typically 4-9 units Capitalize on strong brand name by entering into joint ventures on quality projects Vision: Strategy: Offering: Be the preferred and most profitable real estate developer in Norway Acquire five to six new properties each year units High-end projects at prime locations

4 SOLON POSITIONING High-end segment Black Bricks Small projects Large projects NCC Skanska OBOS Low-end segment

5 PURE PLAY RESIDENTIAL DEVELOPER Acquire land Project Design Marketing & Sale Construction Large network in addition to inhouse search capabilities for new properties. Solon targets transactions on an exclusive basis. Work with highly reputable and innovative partners. Solon is specialized at managing the zoning process Excellence in marketing with high quality sales material, websites and show rooms in order to maximize sales No in-house construction arm. All construction activity outsourced to reputable construction companies

6 RISK MANAGEMENT 1. ACQUISITION Acquire zoned land or unzoned land that is allocated for residential development Flexible and tailored model for partnering with sellers of property 2. PRE-SALES MINIMUM Pre-sales of minimum 60 % secures the majority of revenue before construction 10 % of purchase price is paid by the buyer up front 3. FIXED PRICE CONSTRUCTION CONTRACT Competitive construction contracts at fixed prices 4. LIMITED POST-DELIVERY RISK Post-delivery claims are the contractors responsibility

7 ,0 20,0 15,0 10,0 5,0 0,0 SALES VALUE PER QUARTER Side All time high sales value in 2016 of NOK 975 million ,2 Q all time high quarter mainly related to two projects in Kolbotn (which will be completed Q4 2017) Strong sales in Q ,6 6 5,5 6,1 Bygdøy project soft launched in Q and therefore value per unit above average Q Q Q Q Q4 2016

8 EXPECTED COMPLETIONS 2017 Number of units Expected 175 completed units in 2017 (113 units in 2016) Large fluctuations from quarter to quarter Main projects in Q are Jessheim and Kolbotn projects Q Q Q Q Expected completions in 2018 and 2019 combined in line with plans, but risk of movement of units between years

9 ,0 % 45,0 % 40,0 % 35,0 % 30,0 % 25,0 % 20,0 % 15,0 % 10,0 % 5,0 % 0,0 % REAL ESTATE SEGMENT RESULTS ,5 % 14,5 % 16,5 % Revenue EBITDA EBITDA margin

10 CONCLUDING REMARKS 1. Fast growing company with strong track record 2. Significant backlog and land bank secures a solid platform for continued growth 3. Lean organization with hands-on management 4. Geographically focused on the most attractive residential market in Norway 5. Substantial growth potential beyond the backlog and land bank

11 Side 11 FINANCIALS 3/29/2017

12 REVENUE 8 units delivered in Q vs 2 units in Q units delivered in 2016 vs 111 units in 2015 REVENUE (NOK million) Other revenues NOK 26 million in Q consists mainly of gain on sale of property included in revenue Q Q

13 OPERATING RESULTS Decrease in EBITDA from 2015 to 2016 is mainly due to Gain on sale of property in 2015 EBITDA (NOK million) 127 Unrealized loss on investment property of NOK 12 million in Transaction costs of NOK 9 million in 2016 Bionor included with NOK 1 million in Q Q

14 BALANCE SHEET Non current assets consist mainly of an investment property NOK 200 million and intangible assets of NOK 120 million ASSETS Inventories NOK million Investments in 2016 in the land bank amounted to NOK 275 million Cash and bank NOK 239 million Current liabilities includes interest bearing debt of NOK 368 million and prepayments from customers of NOK 110 million See next page for break down of total interest bearing liabilities Equity ratio of 28% at year end 2016 Non- current assets Current assets TOTAL ASSETS EQUITY AND LIABILITIES Total equity Non current liabilities Current liabilites Total liabilities TOTAL LIABILITIES AND EQUIT

15 INTEREST BEARING DEBT Interest bearing debt amounts to NOK million (NOK 1 083) million The financial expense was NOK 38 million(nok 31 million) Other; Commercial; The average interest rate on outstanding loans was 3.41% in 2016 Land; Construction;

16 EXTRAORDINARY SHAREHOLDERS MEETING Reverse share split and reduction of share capital Reverse share split: 1/200 Share capital reduction: From NOK 972 million to NOK 49 million Transfer NOK 923 million to non restricted equity Extraordinary shareholders meeting end of March 2017

17 SELECTED PROJECTS Side 17

18 ULLEVÅL TÅRN WINNER OF THE OSLO ARCHITECTURE AWARD 2016 Side 18

19 SÆTER TERRASSE COMPLETED DECEMBER 2016 Side 19 3/29/2017

20 JESSHEIM HAGE FIRST DELIVERY APRIL 2017 Side 20 3/29/2017

21 BYGDØY ( PREVIOUSLY THE CANADIAN EMBASSY) SALES START NOVEMBER 2016 Side 21

22 VOKSENKOLLEN COMPLETED JUNE 2016 Side 22

23 VILLA SKØYEN SALES START APRIL 2017 Side 23

24 SØNSTERUDVEIEN 30 SALES START APRIL 2018 Side 24

25 ULLEVÅL TÅRNS II SALES START MARCH 2018 Side 25

26 KOLBOTN HENGENDE HAGE FIRST DELIVERY DECEMBER 2017 Side 26

27 KOLBOTN HAGE FIRST DELIVERY DECEMBER 2017 Side 27

28 Solon Eiendom AS Org. nr Olav Vs gate 5, 0161 Oslo