15th Annual General Meeting June 2016

Transcription

1 15th Annual General Meeting + 28 June 2016

2 conwert is a fully integrated real estate company focusing on residential properties and apartment buildings in Austria and Germany, 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 + Business performance Group financials Overview earnings 1-3/2016 and outlook

3 + Business performance 2015 Strong performance in 2015 Increase in FFO I 53.4 mn vs mn in previous year 0.64 per share vs in previous year Non-core sales expedited 235 mn vs. 78 mn in previous year Sales 4% over carrying amount Property in Czech Republic sold off in full Fall in vacancy rates From 9.0% to 6.6% Down to 3.1% in core portfolio Financing costs cut Financing costs cut by 170 bps to 2.3% LTV reduced 49.2% LTV 1) vs. 53.6% in previous year 1) Under inclusion of the convertible bonds converted in January

4 + Business performance 2015 Clear portfolio strategy laid out in autumn Exceptional performance indicators in core portfolio at end of 2015 Portfolio segment Units 1) (no.) Fair value 2) ( mn) As % of total property portfolio Net cold rent ( /sqm) Like-for-like growth in net cold rent (%) Vacancy rate (% of space) Change in vacancy rates (%) Fair value/net cold rent (x) Yield (%) Premium markets 8,975 1, % % 2.1% x 4.7% Core markets 10, % % 3.7% x 7.4% Core portfolio 1, % % 5.7% x 8.2% Privatisation % % 2.4% x 3.0% Core residential market Premium commercial market 21,481 1, % % 3.1% x 5.6% % % 3.1% x 6.3% Core portfolio 21,865 1, % % 3.1% x 5.7% Residential (Non-core portfolio) Commercial (Non-core portfolio) 3, % % 17.4% x 7.6% 2, % % 13.9% x 6.2% Total portfolio 27,494 2, % % 6.6% x 5.9% 1) excl. parking spaces 2) incl. IFRS 5 property assets and assets held for sale (at fair value) 4

5 + Business performance 2015 Portfolio streamlining well underway Non-core sales proceeds in EUR mn Non-core sales of EUR 235 mn in Sales proceeds 4% above the carrying amount Full sale of portfolio in the Czech Republic Margin above carrying amount 3.0% 4.2% 5

6 + Business performance 2015 Cutting operating costs implementation Ongoing restructuring measures Operating costs as % of property assets + Centralising all back-office functions + Harmonising the organisation and processes + Reducing locations by 20% 3.5% 3.4% 3.7% 3.0% 2.7% 2.2% + SAP implementation + Optimising business activities in Austria Status and expected results Adjusted rent-ebitda margin of competitors 1 + Negotiations with Works Council concluded + Underway closing expected end of summer Cost savings of 8 mn p.a. expected (20%) + Improvement in NRR margin of around 2% expected 65.7% 69.3% 65.4% 66.3% Average: 65.3% 59.8% 1) FY 2015 except Buwog 6

7 Reactive + Business performance 2015 Forward-looking investments in the property portfolio Overview: maintenance and capex costs (in /sqm) Major investments realised, e.g. - Am Kiesteich, Berlin 15 mn - Baumertweg, Essen 9 mn - Gropius-Terrassen, Bochum 10 mn + Focus of investments is on reducing vacancy rates, e.g Gropius-Terrassen with 47% vacancy rate - Baumertweg with 51% vacancy rate + Reducing the reactive costs for maintenance and investments Q Maintenance Investments Major investment projects 7

8 conwert ist ein voll integriertes Immobilienunternehmen mit Schwerpunkt auf Wohnimmobilien und Zinshäuser in Österreich und Deutschlan,d Dieser Fokus wird durch ein Gewerbeimmobilienportfolio ergänzt, conwert besitzt. entwickelt. vermietet und verkauft innerstädtische Immobilien, Das Geschäftsmodell der conwert basiert auf drei Säulen: dem Portfolio Management. der Entwicklung bzw, dem Verkauf von Immobilien und dem Immobilien- Dienstleistungsbereich, conwert setzt bei der Umsetzung ihrer Ziele auf eine transparente Unternehmensstruktur und eine klare Strategie, Ein für alle Mitarbeiter des Konzerns geltender Verhaltenskodex legt die ethischen Grundsätze des unternehmerischen Handelns für die conwert- Gruppe fest und regelt den Umgang der Mitarbeiter untereinander als auch mit den Stakeholdern, Inhalt Content + Business performance Group financials Overview earnings 1-3/2016 and outlook

9 + Group Financials 2015 Overview of 2015 income statement Reflecting operational focus (in mn unless otherwise indicated) 1-12/ /2014 Change Rental income % Net proceeds on property sales % Service revenues % Net gains from fair value adjustments NM Earnings before interest and tax (EBIT) % Net finance result (80.6) (131.5) -38.7% Earnings before tax (EBT) (9.9) NM Profit/loss after tax 83.3 (8.9) NM Profit/loss after non-controlling interests 79.5 (12.0) NM Recurring FFO I 1) (excl. sales income) % FFO II without cash taxes/cash profit 2) % Net rental result (NRR) % NRR margin (in %) % NRR margin (adjusted) (in %) 3) % Comments Reflects the sales programme Revaluations in Q3 and Q4 Also a significant decrease in financing costs with an effect on cash Very strong earnings in Q4 Strong growth due to good operating performance and lower financing costs with an effect on cash Further improvement in NRR margin 1) FFO I: Earnings before tax (EBT) - difference between sales and carrying amount of sold properties + operating expenses of sales income -/+ revaluation gains/losses + depreciation and value adjustments + non-cash components of financial income and other non-cash costs not including interests of associates + restructuring costs/one-off costs - cash taxes on net rental income 2) FFO II: FFO I + difference between sales and carrying amount of sold properties - net sales income expenses 3) NRR margin (adjusted): NRR margin excluding operating costs charged to tenants 9

10 + Group financials 2015 Significant increase in FFO I FFO I (in EUR mn) Positive performance despite smaller portfolio + Operating improvements related to vacancy rates and rental income in EUR/share Decrease in average interest rates

11 + Group financials 2015 Stable EPRA NAV despite clearing existing liabilities NAV (in EUR mn) , , Positive effects from revaluation gains and improved net finance costs + Negative effects arising from lower market value of derivatives in EUR/share Dilution through convertible bond 11

12 + Group financials 2015 Balance sheet structure as of 31 December 2015 Balance sheet( mn) Financial liabilities ( mn) Other Property assets 2, ,692 2,888 1,466 Other liabilities 157 Bond debt Bonds dept Bank debt 210 1,275 Bank dept (Mortgages 361 (Mortgages & bridge financing) & bridge financing) 1,265 Equity Assets as of am 31/12/2015 Equity and liabilities as of 31/12/ December 2015 Share of debt of convertible bonds and retail bond Bridge financing 38 mn 33 Banks Range: < 20 mn 11 Banks Range: mn 6 Banks Range: > 50 mn Improvements in debt ratio (LTV) and equity/share 31/12/ /12/2014 Target Loan-to-value (LTV) incl. cash and cash equivalents Loan-to-value (LTV) (in-the-money convertibles as equity) 49.2% 53.6% 46.3% 47.5% 50% Equity/share

13 + Group financials 2015 Significant improvements to financing structure Significant elements of the financing policy Progress made in financing in 2015 Target LTV of 50% LTV cut from 53.6% to 49.2% Target interest rates 2% Interest rates cut from 4.0% to 2.3% Target maturity of loans 7 8 years Maturity of loans extended to 7.2 years Interest hedging 70 80% Interest hedging to 75% Dividends of 60% of FFO I Dividend proposal of 0.35/share for 2015 = 61% of FFO I 13

14 conwert ist ein voll integriertes Immobilienunternehmen mit Schwerpunkt auf Wohnimmobilien und Zinshäuser in Österreich und Deutschlan,d Dieser Fokus wird durch ein Gewerbeimmobilienportfolio ergänzt, conwert besitzt. entwickelt. vermietet und verkauft innerstädtische Immobilien, Das Geschäftsmodell der conwert basiert auf drei Säulen: dem Portfolio Management. der Entwicklung bzw, dem Verkauf von Immobilien und dem Immobilien- Dienstleistungsbereich, conwert setzt bei der Umsetzung ihrer Ziele auf eine transparente Unternehmensstruktur und eine klare Strategie, Ein für alle Mitarbeiter des Konzerns geltender Verhaltenskodex legt die ethischen Grundsätze des unternehmerischen Handelns für die conwert- Gruppe fest und regelt den Umgang der Mitarbeiter untereinander als auch mit den Stakeholdern, Inhalt Content + Business performance Group financials Overview earnings 1-3/2016 and outlook

15 + Overview earnings 1-3/2016 and outlook Q1 sees conwert right on track to meeting 2016 targets Strong rise in FFO I 18.2 mn compared to 12.7 mn in previous year 0.20 per share compared to 0.15 in previous year Almost half of non-core sales completed 155 mn in non-core sales recognised and signed by today 2016 Exclusive negotiations underway for property valued at > 300 mn Vacancy rates down, rents up Vacancy rates cut yoy from 9.4% to 7.2% Increase in rents of 2.9% Further reduction in financing costs Further reduction to 2.2% Further decrease in LTV LTV down to 47% 15

16 + Business performance 2015 Expanding the property portfolio: acquisition in Duisburg Household growth Duisburg 1) + 1,029 apartments + Purchase price of 46 mn + 25 minutes to Düsseldorf via the A59 + Stronger household growth than Duisburg as a whole + Core region for conwert + Closing /integration in Q Duisburg- Mittelmeidrich 1) GfK Geomarketing > 5.0% 0.0 to 5.0% -2.5 to 0.0% -5.0 to -2.5% < -5.0% 16

17 + Overview earnings 1-3/2016 and outlook conwert increases its FFO guidance to 70 mn Business outlook for strong growth in FFO I ( mn) e Portfolio change Cost savings Interest reduction 2016e Guidance + FFO I guidance 2016 increased to 70.0 mn + Main reasons: - Reducing of financing costs - Reducing of operating costs - Sales in non-core markets timing clearer after H

18 + Strategie. Management und Corporate Governance Performance of the conwert share Share significantly outperforms EPRA Euro Index 16 The CWI share at an eight-year high since September /share 1) /share 2) Discount to EPRA NAV/share: 27.8% 9 09/ / / /2016 conwert Analystenkonsensus Analysts cosensus EPRA Euro Index Discount to EPRA NAV/share: 8.3% 1) Analysts consensus at 23 June ) at 23 June

19 Financing strategy Operating efficiency Portfolio strategy + Overview earnings 1-3/2016 and outlook Strategic outlook and targets 1 Focusing the portfolio + Residential property in Germany and Austria focus on Germany 2 Expediting non-core sales and acquisitions mn non-core sales in Reinvesting sales proceeds in locations with positive growth in households 3 4 Increasing rents, reducing vacancies Increasing efficiency + Like-for-like rental increase in core portfolio to ~3% p.a., to be increased in the medium term + Cut vacancy rate in the core portfolio to below 3% in the short term + Cost reduction of 20% to be realised by the end of summer Cutting financing costs + Reduce financing costs to 2% 19

20 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,