IMMOFINANZ GROUP Q1 RESULTS 2012/13 25 September 2012
OVERVIEW: Q1 RESULTS 2011/12 VS. 2012/13 (*) FX effects: Revaluation of properties under construction resulting from foreign exchange effects (EUR +0.7 mill.), Revaluation of investment properties resulting from foreign exchange effects (EUR +56.6 mill.), Foreign exchange differences (EUR -94.0 mill.) and thereof FX effects realised in the Q1 2012/13 results (EUR +5.6 mill.). Non realised effects from derivative instruments: EUR -28.9 mill. Note: All amounts in MEUR, Data as of 31 July 2012 2
Q1 RESULTS 2012/13 All amounts in MEUR Q1 result 2012/13 Q4 result 2011/12 variance main contribution to variance Increased rental income (EUR +13.9 mill.) mainly due to the takeover of the remaining 50% Rental income 162.3 148.4 13.9 in the shopping center Golden Babylon Rostokino in Russia Operating costs charged to tenants 43.5 51.6-8.1 Counterpart to operating expenses Other revenues 7.2 4.4 2.8 Revenues 213.0 204.4 8.6 Real estate expenses -29.5-40.1 Compared to Q4 2011/12 inter alia reduced maintenance expenses (EUR -4.9 mill.) and 10.6 reduced operating costs charged to building owners (EUR -2.0 mill.) Operating expenses -41.5-48.3 6.8 Counterpart to operating costs charged to tenants Income from asset management 142.0 116.0 26.0 Income from property sales 6.0 18.2 Gain on property sales in Q4 2011/12 was extraordinary high due to the sale of -12.2 Mariahilferstraße 53, located in the 6th Vienna district. Income from property development 3.3-9.6 Q4 2011/12: Negative revaluation of properties under construction (EUR -6.2 mill.) mainly due to delay in the completion of the geriatric centre in Heller Park (BUWOG) and negative 12.9 revaluation of properties resulting from FX effects (EUR -8.8 mill.) Other operating income 4.9 20.9 Q4 2011/12: Reversal of provisions (EUR +6.3 mill.) as well as a cancellation of a financial -16.0 liability (EUR +6.8 mill.) due to a disposal Income from operations 156.2 145.4 10.8 Administration costs -34.5-38.8 Compared to Q4 2011/12 reduced personnel expenses (-2.6 mill.) and overhead expenses 4.3 (EUR -1.7 mill.) Results from operations ("EBITDA") 121.7 106.7 15.0 Revaluation excluding FX effects 11.4 37.4-26.0 Reduced revaluation of properties compared to Q4 inter alia in Poland and Russia FX effects 56.6-104.7 161.3 Other revaluation result -1.2-39.3 Q4 2011/12: Lower valuation of Gerling Quartier led to an write-off of receivables; additional 38.1 write-off of receivables resulting from a disposal in 2008 Operating profit (EBIT) 188.5 0.1 188.4 Net financing cost -48.6-36.7 Increased net financing costs due to lack of financing income from receivables against -11.9 Rostokino SPV and slightly increased financing costs Foreign exchange differences -94.0 48.0-142.0 Restructuring of SPV's will revert part of negative difference Other financial results -35.1-2.3-32.8 Revaluation losses on derivatives in Q1 2012/13 Shares of profit/loss from associated companies 0.1-3.5 3.6 No negative earnings contribution (EUR +3.6 mill.) compared to Q4 2011/12 Earning before tax (EBT) 10.9 5.6 5.3 Taxes -1.7-3.7 2.0 Net profit for the period 9.2 2.0 7.2 3
BALANCE SHEET AS OF 31 JULY 2012 All amounts in MEUR 31 July 2012 in % 30 April 2012 in % Investment property 9,887.6 9,864.1 Property under construction 330.1 300.6 Inventories 156.8 148.3 Assets held for sale 4.8 82.3% 42.2 84.6% Investments in associated companies 77.9 0.6% 78.9 0.6% Other financial assets 372.6 3.0% 247.6 2.0% Trade and other receivables 736.6 5.8% 678.1 5.5% Deferred tax assets 52.3 0.4% 58.9 0.5% Other assets 267.8 2.1% 269.3 2.2% Cash and cash equivalents 719.5 5.7% 559.2 4.6% ASSETS 12,605.9 100.0% 12,247.2 100.0% Equity 5,568.4 44.2% 5,551.1 45.3% Liabilities from convertible bonds 717.7 5.7% 729.4 6.0% Financial liabilities 5,017.9 39.8% 4,645.3 37.9% Trade and other liabilities 631.3 5.0% 632.3 5.2% Provisions 131.2 1.0% 136.8 1.1% Deferred tax liabilities 539.4 4.3% 552.5 4.5% EQUITY AND LIABILITIES 12,605.9 100.0% 12,247.2 100.0% Equity ratio of 44.2% Cash and cash equivalents of more than EUR 700 mill. Increase of financial liabilities mainly due to the refinancing of the shopping center Golden Babylon Rostokino and the issuance of a corporate bond 4
Q1 RESULTS 2012/13 5
FINANCING - MATURITY SCHEDULE 6
SUCCESSFUL SALES PROGRAMME Fully discretionary sales programme (volume EUR 2.5 bill.) launched at the beginning of FY 2010/11 Sales programme 2010-2015 in MEUR Five-year target 2,500.0 Target for 9 quarters years (May 2010 - July 2012) 1,125.0 Properties sold in FY 2010/11 (asset and share deal) 266.8 Financial assets sold in FY 2010/11 95.1 Total assets sold in FY 2010/11 361.9 Remaining sales programme until 2014/15 Carrying value in MEUR Carrying value in % Non-property assets 199.1 14.0% Portfolio optimisation 768.6 53.9% Cycle-optimised sales 456.9 32.1% IMMOFINANZ Group 1,424.6 100.0% MEUR 1,075.4 sold until July 2012 Properties sold in FY 2011/12 (asset and share deal) 498.9 Financial assets sold in FY 2011/12 131.1 Total assets sold in FY 2011/12 630.0 Properties sold in Q1 2012/13 (asset and share deal) 83.5 Total assets sold in FY 2012/13 83.5 Total assets sold until 31 July 2012 1,075.4 Variance to announced programme -49.6 streamline the portfolio (4 asset classes and 8 countries) optimise the balance sheet structure (90% real estate properties as a percentage of total balance sheet sum [31 July 2012: 82.3%]) 7
OUTLOOK Continuous increase of rental income through: Active asset management Impact of the acquisition of the remaining shares in the shopping center Golden Babylon Rostokino Focus on ongoing development projects inter alia in Russia, Austria, Poland and Germany Extended building permission for Galeria Zamek in Lublin (PL) Full takeover of Gerling development in Cologne Portfolio optimisation Higher Clock-Rate for the real estate machine More sales (especially in BUWOG) More developments (especially in Germany, Russia and Poland) Further reduction of overhead and personnel expenses in FY 2012/13 Integration of the Romanian residential developer Adama and start of new developments Dividend distribution of EUR 0.15/share for the current financial year Share buyback programme announced (5 cent per share, i.e. approximately EUR 50 mill. for the rest of the fiscal year) 8
GOLDEN BABYLON ROSTOKINO 100% TAKEOVER BY IMMOFINANZ GROUP Moscow, Russia 21 March 2012: Agreement with joint venture partner Patero for the full takeover 11 April 2012: Long-term financing agreement (10 years) with Russian Sberbank with a volume of up to USD 715 mill. 16 May 2012: Takeover completed One of the largest shopping centers in continental Europe 167,963 sqm lettable area 241,000 sqm total space Parking area with 7,500 spaces More than 500 shops Approx. 24 mill. visitors/year Located in Sviblovo, a densely populated district in northeast Moscow Easy access by car and easily reachable by public transport Balanced tenant mix of well-known local and international retail chains, including Media Markt, H&M, Inditex (Zara, Zara Home, Bershka etc.), a Castorama building materials outlet, the Finnish department store Stockmann, the Russian food hypermarket O key, cinema with 14 theaters and numerous gastronomy facilities 9
FULL TAKEOVER OF GERLING QUARTIER IN COLOGNE Gerling Quartier Cologne, Germany Location Gerling Quartier located in the city center of Cologne within the ring road surrounding the old city. Public transport 2 underground stations are located nearby. Completion costs: EUR 208 mill. Completion: 2013/14 Useable area: Total 94,000 sqm Office/Commercial 45,000 sqm Residential 49,000 sqm 10
EXTENDED BUILDING PERMISSION FOR GALERIA ZAMEK IN LUBLIN (PL) Galeria Zamek Lublin Location Situated across from Lublin Castle - near historic old city. Adjacent to city s most important traffic junction Public transport Several bus lines and proximity to the central bus station Completion costs: EUR 88 mill. Completion: Autumn 2014 Useable area: 37,000 sqm Building Shopping Center 2 floors above ground (retail) 2 floors underground (retail + parking) Main tenants Focus on fashion, entertainment and leisure. Anchor tenants: strong supermarket, international electronic & fashion retailers 11
Appendix
PORTFOLIO - OVERVIEW Property portfolio Number of properties Standing investments in MEUR Properties under construction in MEUR **) Project pipeline in MEUR Property portfolio in MEUR Property portfolio in % Austria 1,476 3,684.4 113.6 92.1 3,890.2 37.5% Germany 63 607.2 58.9 0.0 666.1 6.4% Czech Republic 34 608.3 41.5 4.8 654.6 6.3% Hungary 33 493.7 0.0 39.6 533.3 5.1% Poland 35 934.5 23.6 19.9 977.9 9.4% Romania 88 667.0 37.8 317.9 1,022.7 9.9% Russia 6 1,519.3 141.9 0.0 1,661.2 16.0% Slovakia 20 290.9 0.0 22.2 313.1 3.0% Non-core countries*) 67 559.6 18.3 82.4 660.3 6.4% IMMOFINANZ Group 1,822 9,364.9 435.5 578.9 10,379.3 100.0% 90.2% 4.2% 5.6% 100.0% *) Bulgaria, Croatia, France, Italy, Moldavia, Netherlands, Serbia, Slovenia, Sw itzerland, Turkey, Ukraine, USA **) Future standing investments, inventory properties completed and under construction 90.2% of property portfolio are income generating properties (standing investments) 51.2% of the property portfolio are located in Eastern Europe, 48.8% in Western Europe and the USA Appendix 1 13
PORTFOLIO - STANDING INVESTMENTS Standing investments Number of properties Occupancy rate in % Carrying amount in MEUR Carrying amount in % Rental income Q1 2012/13 in MEUR*) Running yield in % Property Financing in MEUR Financing costs in % LTV in % **) Austria 1,403 93.0% 3,684.4 39.3% 49.1 5.3% 1,627.2 2.0% 44.2% Germany 60 92.5% 607.2 6.5% 13.0 8.5% 367.5 2.8% 60.5% Czech Republic 28 80.6% 608.3 6.5% 9.9 6.5% 260.8 2.1% 42.9% Hungary 28 74.8% 493.7 5.3% 7.8 6.3% 224.2 2.8% 45.4% Poland 24 92.3% 934.5 10.0% 15.3 6.5% 536.3 2.4% 57.4% Romania 18 81.4% 667.0 7.1% 11.7 7.0% 307.7 3.8% 46.1% Russia 5 96.4% 1,519.3 16.2% 38.3 10.1% 504.1 7.4% 33.2% Slovakia 15 91.7% 290.9 3.1% 5.3 7.3% 192.2 3.4% 66.1% Non-core countries 36 83.7% 559.6 6.0% 11.6 8.3% 286.6 2.3% 51.2% IMMOFINANZ Group 1,617 89.9% 9,364.9 100.0% 161.9 6.9% 4,306.5 3.0% 46.0% Properties under construction & pipeline projects 1,014.4 0.4 193.5 4.8% Investment financing 0.0 0.0 299.4 1.2% Financing on corporate level (CB, Syn Loan) 0.0 0.0 999.3 3.9% IMMOFINANZ Group 10,379.3 162.3 5,798.8 3.1% 55.9% *) Rental income in Q1 2012/13 based on the primary use (Rental income according P&L based on the actual use and not according to the primary use) **) LTV calculation based on the actual outstanding liability (Calculation based on carrying amount of financial liabilities according to balance sheet is 55.3%) Standing investments Number of properties Occupancy rate in % Carrying amount in MEUR Carrying amount in % Rental income Q1 2012/13 in MEUR*) Running yield in % Property Financing in MEUR Financing costs in % LTV in % **) Office 105 80.6% 2,693.3 28.8% 40.9 6.1% 1,233.4 2.6% 45.8% Retail 189 93.1% 3,035.7 32.4% 65.7 8.7% 1,207.8 4.9% 39.8% Residential 1,250 95.3% 2,627.1 28.1% 33.6 5.1% 1,294.8 1.9% 49.3% Logistics 71 86.2% 820.0 8.8% 18.3 8.9% 466.5 2.6% 56.9% Other 2 90.5% 188.8 2.0% 3.5 7.4% 104.1 2.1% 55.1% IMMOFINANZ Group 1,617 89.9% 9,364.9 100.0% 161.9 6.9% 4,306.5 3.0% 46.0% *) Rental income in Q1 2012/13 based on the primary use (Rental income according P&L based on the actual use and not according to the primary use) **) LTV calculation based on the actual outstanding liability (Calculation based on carrying amount of financial liabilities according to balance sheet is 55.3%) Appendix 2 14
DEVELOPMENT PROJECTS Properties under construction Number of properties Carrying amount in MEUR Carrying amount in % Outstanding construction costs in MEUR Planned lettable/sellable space in sqm Fair Value after completion in MEUR Austria 12 113.6 26.1% 27.7 57,829 148.3 Germany 3 58.9 13.5% 124.5 47,385 195.7 Czech Republic 5 41.5 9.5% 50.7 37,136 112.5 Poland 3 23.6 5.4% 122.0 56,515 177.3 Romania 10 37.8 8.7% 0.0 60,814 38.7 Russia 1 141.9 32.6% 63.3 56,311 241.8 Non-core countries 3 18.3 4.2% 5.0 26,435 20.7 IMMOFINANZ Group 37 435.5 100.0% 393.2 342,426 935.1 Top projects Project Country Main use Planned rentable/sellable space in sqm *) Gerling Quartier Germany Office/Residential 75,454 GOODZONE Russia Retail 56,311 BUWOG projects Austria Residential 30,015 Galeria Zamek Lublin Poland Retail 29,297**) San Antigua USA Residential 22,823 Nimbus Poland Office 19,315 Heller Park Austria Other 18,322 CSOB Na Prikope Czech Republic Retail 16,043 Extension STOP.SHOP. Trebic Czech Republic Retail 12,740 Panta Rhei Germany Office 9,658 CSOB Jungmannova Czech Republic Office 7,668 Hotel Leonardo Austria Other 6,761 CSOB Jindrisska Czech Republic Office 6,750 *) The figures shown in the table represent 100% of the project **) Site area Properties which are currently under construction or already completed (apartments) Focus on Russia, Germany, Poland and Austria Appendix 3 15
PORTFOLIO - PROJECT PIPELINE Project pipeline Project pipeline Number of properties Carrying amount in MEUR Carrying amount in % Austria 61 92.1 15.9% Czech Republic 1 4.8 0.8% Hungary 5 39.6 6.8% Poland 8 19.9 3.4% Romania 60 317.9 54.9% Slovakia 5 22.2 3.8% Non-core countries 28 82.4 14.2% IMMOFINANZ Group 168 578.9 100.0% Reasons why not yet under construction: still in planning phase or required (building) permits not yet available or bank financing still under negotiation or desired pre-letting level not yet achieved projects not yet feasible More than 50% of pipeline projects are located in RO Acquisition of Adama (already closed) in order to 1. acquire a successful developer 2. takeover of a platform capable of managing IMMOFINANZ Group s pipeline projects in RO 3. get full control Appendix 4 16
FINANCING - STRUCTURE Outstanding liability Weighted as of 31 July 2012 in average interest Fixed interest Variable interest Fixed interest Variable interest Financial liabilties TEUR rate in % rate, share in % rate, share in % rate in % rate in % Convertible bond in EUR 725,820.0 4.07% 100.0% 0.0% 4.07% 0.00% Corporate bond in EUR 100,000.0 5.25% 100.0% 0.0% 5.25% 0.00% Bank liabilities in EUR 3,643,629.3 2.64% 12.4% 87.6% 3.91% 2.46% Bank liabilities in USD 598,016.6 6.67% 0.1% 99.9% 3.97% 6.68% Bank liabilities in CHF 155,788.0 1.42% 2.2% 97.8% 2.25% 1.40% Bank liabilities in RON 171.7 8.70% 0.0% 100.0% 0.00% 8.70% Local authorities in EUR 538,417.7 1.18% 100.0% 0.0% 1.18% 0.00% CPI linked Bond ILS 36,945.9 7.90% 100.0% 0.0% 7.90% 0.00% IMMOFINANZ Group 5,798,789.3 3.14% 32.1% 67.9% 3.33% 3.06% 70.4% of financed liabilities are fixed interest liabilities or are hedged by derivative instruments Weighted average interest rate including cost of hedging: 3.71% Conversion price in EUR per share Nominal value as of 30 April 2012 in TEUR Nominal value as of 31 July 2012 in TEUR Coupon Conversions Repurchase Convertible bond ISIN Maturity in % 2012/13 in TEUR 2012/13 in TEUR Convertible bond 2017 XS0332046043 19 Nov. 2012*) 8.93 3.75%**) 195,000.0 0.0-10,000.0 185,000.0 Convertible bond 2014 XS0283649977 20 Jan. 2014 14.16 2.75% 25,700.0 0.0 0.0 25,700.0 Convertible bond 2018 XS0592528870 08 Mar. 2016*) 3.94 4.25% 515,120.0 0.0 0.0 515,120.0 IMMOFINANZ Group 735,820.0 0.0-10,000.0 725,820.0 *) Put Option for convertible bondholder **) Yield to maturity (coupon 1.25%) Appendix 5 17
FINANCING WELL DIVERSIFIED BORROWING Borrowing on company level Financing structure Outstanding liability as of 31 July 2012 in TEUR Outstanding liability in % About 110 banks or insurance companies 4,397,605.7 75.8% Convertible bonds 725,820.0 12.5% Local authorities 538,417.7 9.3% Corporate bond 100,000.0 1.7% CPI linked Bond ILS 36,945.9 0.6% IMMOFINANZ Group 5,798,789.3 100.0% Borrowing on group bank level Financing with 110 different banks or insurance companies Appendix 6 18
CONTACT DETAILS AND FINANCIAL CALENDAR Investor Relations Telephone: +43 (0) 5 7111 Email: investor@immofinanz.com Financial Calendar Q1 2012/13 results 25 September 2012 Annual general meeting 05 October 2012 Ex-dividend day 08 October 2012 Value date (dividend) 15 October 2012 H1 2012/13 results 20 December 2012 Q3 2012/13 results 26 March Stock Symbols Vienna Stock Exchange: IIA ISIN: AT0000809058 Reuters: IMFI.VI Bloomberg: IIA AV American Depository Receipt ADR ticker symbol: IMNZY ADR ISIN: US45253U2015 Website: www.immofinanz.com Appendix 7 19
THANK YOU FOR YOUR ATTENTION Appendix 8 20