12 th Annual General Meeting. + Vienna, 8 May 2013

Transcription

1 12 th Annual General Meeting + Vienna, 8 May 2013

2 conwert is a fully integrated real estate company focusing on residential properties and apartment buildings in Germany and Austria. This focus is complemented by a commercial property portfolio. conwert owns, develops, lets and sells properties in metropolitan regions. conwert s business model is based on three pillars: portfolio asset management, the development and sale of properties and the property service segment. conwert relies on a transparent corporate culture and a clear strategy for the implementation of its objectives. A code of conduct applicable to all employees of the group lays down the ethical principles of entrepreneurship and governs the behaviour of employees when dealing with one another and with the stakeholders. Content + Operational performance 2012 and market overview + Financial performance and balance sheet indicators Strategy and Outlook

3 Operational performance 2012 and market overview

4 + Business development 2012 and market overview conwert-portfolio Detailed overview as per 31 December 2012 (without KWG) Property assets by region (without KWG) Property assets by segment (without KWG) 5.1% Other 43.6% Austria 44.6% Commercial 51.3% Germany 55.4% Residential Austria Germany Other 2 Total Total conwert Group Residential Commercial Residential Commercial Residential Commercial Residential Commercial Number of properties , ,502 Number of rental units 3,118 1,941 13, ,253 3,226 20,479 Number of parking spaces 833 4,044 3,064 1, ,262 6,533 10,795 Total usable space (in 1,000 sqm) , ,924.4 Vacancies (%) Property assets (mill. ) , , , ) All data as per 31 December ) Czech Republic, Slovakia, Hungary, Ukraine, Luxembourg 3) The usable space relates to the reporting date of 31 December 2012 excl. parking spaces 4

5 + Business development 2012 and market overview Markets of conwert 2012 Focus on urban und stable growth markets High-quality 2.5 billion property portfolio, primarily in Germany and Austria Potsdam + Usable space: sqm + Market value: 184 million + Share in total portfolio: 7.3% + Thereof share ECO: + Residential share: 95.2% + Commercial share: 4.8% Berlin + Usable space: 269,326 sqm + Market value: 333 million + Share in total portfolio: 13.3% + Thereof share ECO: + Residential share: 91.4% + Commercial share: 8.6% Dresden + Usable space: 60,794 sqm + Market value: 52 million + Share in total portfolio: 2.1% + Thereof share ECO: + Residential share: 79.1% + Commercial share: 20.9% Leipzig + Usable space: 329,498 sqm + Market value: 250 million + Share in total portfolio: 10.0% + Thereof share ECO: + Residential share: 89.4% + Commercial share: 10.6% D CZ A SK Vienna + Usable space: 412,605 sqm + Market value: 750 million + Share in total portfolio: 29.9% + Thereof ECO share: 6.4% + Residential share: 47.9% + Commercial share: 52.1% Core markets (property portfolio > 20 million, service locations) Regional markets (property portfolio < 20 million, service locations) HU 5

6 + Business development 2012 and market overview Development of Vacancy Rates in Core Markets Sharp improvement vs Development of occupancy Change of occupancy % of portfolio Austria 12.9% 18.7% 31.0% 34.2% Vienna 9.8% 12.6% 22.2% 21.4% Others 8.8% 13.1% 33.2% 12.8% Thereof ECO 20.1% 31.8% 36.8% 10.6% Germany 7.2% 9.7% 25.7% 61.2% Berlin 4.4% 4.1% (6.4)% 14.0% Leipzig 9.3% 13.8% 32.6% 17.1% Potsdam 1.5% 1.9% 22.6% 6.2% Dresden 6.3% 8.7% 27.6% 3.2% Others 7.5% 10.4% 27.9% 20.8% Thereof ECO 6.9% 9.6% 28.3% 7.3% Other countries 40.9% 40.4% (1.2)% 4.6% conwert Group 10.6% 14.5% 26.2% 100.0% Thereof ECO 18.6% 27.1% 31.4% 19.2% Comment Very strong development also because of success in vacancy reduction of commercial assets Successful sale of one asset with 25,000 sqm and letting of another asset with 10,000 sqm vacant space Refurbishment of one project Very strong development of occupancy amid favourable economic development of region Strong overall improvement of vacancies 6

7 + Business development 2012 and market overview Development of Vacancies Like-for-like comparison in conwert s core regions Vienna Leipzig Berlin 16.60% 8.22% 13.24% 9.31% 2.62% 4.34% Dresden 7.17% Potsdam 1.76% % 6.30%

8 + Business development 2012 and market overview Development of Rents Like-for-like comparison in conwert s core regions in /sqm Vienna Leipzig Berlin Dresden Potsdam

9 + Business development 2012 and market overview Portfolio Restructuring 2012 Sales 2012 Acquisitions 2012 Yield Regional weighting + More than 400 million + ~ 500 million in Germany + Improvement in yield of entire property portfolio from 5.3% to 6.0% pro-forma at year-end Share Germany increased from 46.1% to 58.0% pro-forma at year-end ) inkl. KWG 9

10 Financial performance and balance sheet indicators 2012

11 + Ertragsentwicklung und Bilanzkennzahlen 2012 Performance 2012 Strong operating performance but results burdened by one-off effects Operating performance ( million unless indicated otherwise) 2012¹ 2011 Change (%) Net rental income (7.2) NRI margin (%) Total usable space (1,000 sqm) 1,924 2,120 (9,2) Initial yield (%) Asset value ( billion) (11.2) Extraordinary effects ( million unless indicated otherwise) Impact Write-down of goodwill and intangible assets (117.6) Fair value adjustments other countries (40.7) Fair value adjustments ECO Austria (19.0) Fair value adjustments ECO Germany (11.2) Other one-off effects (18.9) Shareholder value ( million unless indicated otherwise) 2012¹ 2011 Change (%) FFO I NAV/share (14.0) 1) FFO I: Earnings before tax (EBT) difference between sales and carrying amount of sold properties + operating expenses of sales result revaluation gains + revaluation loses + depreciation and valuation adjustments + non-cash part of financial result + one-off costs 11

12 + Earnings development and balance sheet indicators 2012 Balance Sheet Structure 2012 Assets ( million) 3,176 2, ,511 2, Property assets Others Equity and liabilities ( million) 3,176 2, ,517 1,689 1,025 1, Equity Financial debt Other liabilities Balance sheet indicators Ziel 2013 Loan-to-value (LTV) incl. cash and equivalents 54.4% 54.0% 50-55% Equity ratio 36.1% 39.3% 12

13 + Earnings development and balance sheet indicators 2012 Goodwill and Intangible Assets More details on write-downs Goodwill ( million) Value of customer relations ( million) As per As per Change conwert Management GmbH (72.6) alt+kelber Immobiliengruppe GmbH Defida Verwaltungs GmbH alt+kelber Immobilienvertrieb GmbH alt+kelber Immobilienverwaltung GmbH alt+kelber Immobilienmanagement GmbH RESAG Property Management GmbH conwert Baudevelopment GmbH RESAG Immobilienmakler GmbH (0.1) (0.4) (16.6) (4.1) (4.0) (25.3) (8.0) (6.5) (2.4) (16.9) (114.8) conwert Management GmbH alt+kelber Immobilienvertrieb GmbH alt+kelber Immobilienverwaltung GmbH alt+kelber Immobilienmanagement GmbH RESAG Property Management GmbH RESAG Immobilienmakler GmbH As per As per Change (1.2) (0.2) (0.2) (0.1) (0.5) (0.8) (0.3) (1.2) (2.8) 13

14 + Earnings development and balance sheet indicators 2012 NAV Composition Potential in negative equity from hedges ( unless indicated otherwise) Change (%) Equity (w/o minorities) 1,018 million 1,236 million (17.6) Number of shares outstanding (in million shares) Comment Reflecting negative impact of one-off effects in P&L and increase in negative equity Equity/share (17.6) Additional fair value of trading properties/share Fair value of financial instruments/share Long-term financing contribution of tenants/share (18.5) Reflects strong trading activity in 2012 Further increase to net million Deferred taxes/share NAV/share (13.9) Discount to current share price 2 45% 53% Significant discount to NAV remains 1) As per 31 December ) As per 6 May

15 + Earnings development and balance sheet indicators 2012 Overview Income Statement 2012 P&L burdend by one-off effects ( million) Change (%) Rental income (10.4) Net proceeds on property sales (29.7) Service revenues (7.5) Earnings before interest, tax, depreciation and amortisation (EBITDA) (22.1) Goodwill intangible assets write-down (118.6) - NM Net result from fair value adjustments (37.2) 0.3 NM Earnings before interest and tax (EBIT) (58.5) NM Financial result (96.1) (96.2) 0.1 Earnings before tax (EBT) (154.6) 23.6 NM Result after minorities (167.8) 23.3 NM FFO I 1 (excl. sales and one-off effects) FFO II 2 (incl. sales and one-off effects) (47.1) Net rental income (NRI) not incl. insurance compensation (7.2) NRI margin 58.7% 56.7% 3.4% Comment Reflects strategic decision to reduce sales volume going forward Commercial properties and CEE assets revalued Burdened by one-off effects of 5.4 million for swap restructuring and 4.1 million for repurchasing convertible bonds I On-track to show sustainable FFO I as basis for dividend payments in coming years Increase reflects operational improvements 1) FFO I: Earnings before tax (EBT) difference between sales and carrying amount of sold properties + operating expenses of sales result revaluation gains + revaluation loses + depreciation and valuation adjustments + non-cash part of financial result + one-off costs 2) FFO II: FFO I + difference between sales and carrying amount of sold properties - deduction of operating expenses of sales result + difference cash gains to IFRS gains on sales 15

16 + Earnings development and balance sheet indicators 2012 Other Operating Expenses More details on one-off effects ( million) 45.5 One-off effects in Savings 24.8% Inland revenue VAT review ( ) KWG acquisition costs Provisions for legal disputes Costs for relocation to new headquarters Other one-off items Other operating expenses (excl. one-off effects)

17 + Earnings development and balance sheet indicators 2012 Financial Results Adversely affected by one-off results ( million) Improvement Cash costs mortgage-backed loans, convertible bonds, corporate bond (77.5) (84.6) 8.4% Non-cash write-ups convertible bonds (4.7) (7.9) 40.5% Non-cash costs for repayments convertible bonds I (4.1) - NM Financial result after write-ups (86.3) (92.5) 6.7% Restructuring of derivatives and value of ineffective swaps (10.4) (5.1) NM IFRS cash costs (3.4) (4.5) 24.4% Note Significant improvement through restructuring of hedging portfolios expected Significant improvement due to repayment of convertible bond I Further development dependent on development of market value Interest paid to conwert (8.4)% Result associates and other % Financial results (96.1) (96.2) 0.1% Guidance also dependent on market value of swaps 17

18 + Earnings development and balance sheet indicators 2012 FFO Overview 2012 vs in Detail Strong operational FFO I before one-off effects ( million) EBT (154.6) 23.6 Deduction of difference between sales and carrying amount of sold properties (34.5) (49.1) Operating expenses of sales result Deduction of revaluation gains 37.2 (0.3) Depreciation and valuation adjustments Non-cash part of financial result and other non-cash costs One-off effects FFO I (w/o sales and excl. one-off effects) Difference between sales and carrying amount of sold properties Operating expenses of sales result (14.3) (21.2) Difference cash gain on sales to IFRS gain on sales FFO II (incl. sales, excl. one-off effects) FFO II (incl. sales and one-off effects)

19 + Earnings development and balance sheet indicators 2012 Development Capex and Maintenance Costs Substantial improvement in investments in portfolio Group ( /Ø sqm) Germany ( /Ø sqm) Austria ( /Ø sqm) excl. Projects excl. Projects excl. projects Capex Maintenance costs + Approx million were spent on Capex in 2012 ( 14.8 million in Austria, 23.7 million in Germany and 1.9 million in the other countries) + Capex 2012 reduced already + Capex include expenses for projects without projects, Capex figures/sqm are significantly lower and at a similar Capex level as among peers 19

20 + Earnings development and balance sheet indicators 2012 Conservative Financial Structure of conwert Low prolongation volume in the coming years + Cash-effective interest rate of appr. 4.45% after hedging + Appr. 9 years average term of all loans inclusive convertible bonds + Broad and long-term distribution of debt financing (more than 60 financing institutions of conwert Group) + Reduction of volume of swaps from 900 million to about 725 million 7 year prolongation profile ( million) Strike price: Strike price: Strike price: Mortgage-backed Loans Mortgage debt of KWG¹ Bond Convertible Bonds ) Based on preliminary figures 20

21 Strategy and Outlook

22 + Strategy and Outlook Strategy for 2013 and 2014 Target: increasing earnings power ability to pay sustainable dividends Selling-off non-core business activities Reinvestment of proceeds from sales in higher yielding assets Integration and enhancement of acquired assets + Sale of CEE properties with a current yield of 4.2% on average + Sale of other commercial assets with an average current yield of 5.8% + Portfolio focusing on core locations in Germany + 1% of yield enhancement for 500 million over coming 2 years implies 5 million of additional dividend potential per annum + Average yield in Austria residential currently 4% while ~7% in Germany for new acquisitions + KWG acquisition expected to yield synergies of 10 million in 2013 and Focus on vacancy reduction and cost savings with acquired assets FFO yield 4% 4% 4% 6% 2% conwert 2013 TAG¹ Deutsche Wohnen¹ GSW¹ LEG¹ 1) Based on broker estimates 22

23 + Strategy and Outlook Strategy Target: increasing earnings power ability to pay sustainable dividends Current portfolio composition (% based on asset distribution of portfolio) Portfolio % Austria 80.0% Germany 1.6% Other 46.4% Gerrmany residential 13.6% Austria residential 38.5% conwert commercial 20.0% Commercial 80.0% Residential 23

24 + Strategy and Outlook Expansion via KWG Acquisition Example KWG + conwert has acquired 75.7% in KWG over recent months for 3.8 million shares and 58.6 million in cash acquisition yield of 8.8% + Residential property company with complementary portfolio + Focus of KWG on North Rhine-Westphalia (NRW), Saxony, Lower Saxony and Berlin million of property assets + Total annual net cold rent planned at 31 million in 2013 Location Share (%) Space (1,000 sqm) NRW Berlin Lower Saxony/North Saxony/Thuringia Total ~602 Saarland conwert old New locations - KWG North Rhine- Westphalia Rhineland- Palatinate Bremen Hamburg Schleswig- Holstein Lower Saxony Hesse Baden- Wuerttemberg Mecklenburg-Western Pomerania Thuringia Saxony- Anhalt Bavaria Berlin Brandenburg Saxony 24

25 + Strategy and Outlook Pro-forma conwert Portfolio Including KWG Residential Austria Residential Germany KWG Total Germany Total core Non-core market Total Number of rental units 3,118 13,544 9,722 23,266 26,384 3,817 30,201 Total usable space (1,000 sqm) ,534 1, ,526 Vacancies (%) Property assets ( billion) Initial yield (%) Yield competitors 6.7% 6.0% 5.8% 4.1% 7.3% 6.9% 7.0% 7.0% conwert residential Germany¹ conwert Group¹ conwert commercial conwert Wohnen Österreich Deutsche Wohnen² GSW² LEG² TAG² 1) Incl. KWG on an pro-forma basis 2) Based on broker estimates 25

26 + Strategy and Outlook Integration of acquisitions and further structural adjustments + Portfolio adjustments and focus on core locations allow significant structural adjustments Number of employees Synergies KWG Capex and maintenance costs + Already reduced by more than 10% in Q Integration leads to merger of further locations and reduction of central costs. Expected synergies of 10.0 million in Improvement of processes leads to savings potential of ~ 6.0 million in Further operational improvements Vacancies + Target 2014: Residential < 5%, Commercial < 10% Rental income + Adjustments to market rents offer further potential in the mid-term 26

27 Disclaimer This presentation includes various forecasts and expectations as well as statements concerning the future development of the conwert Group. These statements are based on assumptions and estimates, and may be connected with known and/or unknown risks and uncertainties. Actual developments and results as well as the financial, earnings and asset position of the Group may therefore differ materially from these expectations and assumptions. The reasons for such variances may include market fluctuations, the development of property prices and rents as well as financial markets and foreign exchange rates, changes in national or international laws and regulations or fundamental changes in the economic and political environment. For this reason, futureoriented statements are only related to the day on which they are made. conwert will accept no obligation to revise or adjust such statements to reflect new information or future results.