Conference Call on 1H 2007 Results 10 September 2007

Transcription

1 Conference Call on 1H 2007 Results 10 September 2007

2 Index Actual June PRE Consolidated Income Statement 2. PRE Net Financial Position 3. PRE Consolidated Balance Sheet 4. PRE Consolidated Net Cash Flow 5. PRE Asset Allocation 6. PRE Assets under management (Real Estate + NPL) 7. PRE Assets under management (only Real Estate) 1/2 8. PRE Assets under management (only Real Estate) 2/2 9. Investment & Asset Management Income Statement Highlights 10. Investment & Asset Management Sales and Acquisitions 11. Services Income Statement Highlights 12. Technical Services Income Statement Highlights 13. Commercial Services Income Statement Highlights 14. Credit Servicing Income Statement Highlights 15. Income Statement: breakdown by activity 16. Investment & Asset Management Income Statement Highlights 17. Commercial Services and Credit Servicing Income Statement Highlights (1/2) 18. Technical Services Income Statement Highlights (2/2)

3 Actual June 2007

4 PRE - Consolidated Income Statement ) JUNE Growth % 1. Pro Quota Aggregate Revenues (*) 2. Consolidated Revenues (*) 3. EBIT 4. Income from Equity Participations(**) 5. EBIT incl. Income from Equity Participations. 6 Interest Income from Participations 7. EBIT incl. Income and Financial Interest from Participations. 8. Other Interest Income/ Expenses 9. P.B.T. 10. Taxes 11. Net Income 12. Minorities' Interests 13. Group Net Income 811,9 673,5 421,8 308,4 19,4 37,7 105,9 54,6 125,4 92,3 11,1 9,4 136,5 101,7 (34,5) (10,0) 101,9 91,7 (16,6) (21,1) 85,3 70,6 (5,3) (0,6) 80,1 70,0 21% 36 % DGAG impact in % (*) 2007 figure does not include DGAG assets deconsolidation's impact, amounting to 529,9m. (**) Includes dividends from funds for 1,9m in 2007 and for 1,8m in Furthermore 2007 result includes capital gains related to the new JV with Banca Intesa in the Facility Management business for 42,1m 1

5 PRE Net Financial Position JUNE 2007 JUNE 2007 PRO- FORMA AFTER DECONS. DECEMBER 2006 JUNE 2006 Total NFP 1.094,8 205,8 96,4 thereof DGAG NFP 979,0 90,0 82,3 NFP without Shareholders' Loans 1.428,4 571,0 430,5 thereof DGAG NFP without Shareholders' Loans 997,4 140,0 465,2 Gearing 2,03 0,81 0,61 0,88 2

6 PRE Consolidated Balance Sheet ACTUAL JUNE 2007 JUNE 2007 Pro-forma Post Decons. DGAG DECEMBER 2006 JUNE Fixed Assets of which investments in participated funds and companies(*) 2. Net Working Capital 745, ,7 572,7 460, ,1 433, , ,3 88,9 3. Net Invested Capital 1.892, ,0 661,6 4. Shareholders' Equity 704, ,7 529,6 5. Funds 6. NFP of which Group Shareholders' Equity 694, ,3 518,6 92, ,9 49, , ,4 82,3 7. Net Invested Capital 1.892, ,0 661,6 8. NFP not including Shareholders'Loans 1.428, ,5 465,2 (*) Includes the stakes in participated companies and in Joint Ventures and the investments in real estate funds and in junior notes. 3

7 PRE - Consolidated Cash Flow Statement 1. EBIT including Income from Equity Participations 2. Depreciation 3. Change in Investments 4. Change in other fixed assets 5. Change in NWC 6. Change in Funds 7. Free cash flow 8. Interest Income / Expenses and Taxes 9. Cash flow before Dividends 10. Dividends paid 11. Dividends paid (Change in Minorities' Equity) 12. Net Cash flow 13. Capital increase with share premium and Treasury Shares use for Stock Option plan 14. Treasury Shares Purchase/Sale 15. Total Cash flow JUNE Pro-forma 2007 Post Decons DGAG 125, ,3 4,9 5 4,3 (24,0) (36) (130,1) (130,5) (131) (36,2) (852,9) ,3 28,5 29 8,7 (848,6) 40 62,2 (46,2) (46) (17,1) (894,9) (6) 45,1 (87,0) (87) (77,3) 0,0 0 (6,9) (981,8) (93) (39,1) 0,0 0 12,4 (16,6) (17) (25,1) (998,4) (109) (51,8) 4

8 PRE - Asset Allocation (market value) pro-forma with binding agreements as of today (acquisition value) without FIP ASSETS UNDER MANAGEMENT 15,5 Bn (Including NPL at Book Value for 2.0 Bn) AUM by product Tourism 3% NPL 13% Residential 26% Commercial 57% Land for Sale 1% Industrial 12% Office 63% Retail 25% 5

9 PRE AUM* (market value): Real Estate + NPL Euro Billion JUNE ,5 (***) +7% vs. Dic 06 5,2 8,8 4,1 0,4 5,2 3,6 0,2 2,0 10,3 Avg. stake PRE 27% (*): 32% Opportunistic/ Value Added 17% Core/ Core Plus Residential Tourism Commercial Land for Sale NPL(**) TOTAL DECEMBER 2006 Opportunistic 9,7 Core 14,5 (***) 5,4 2,2 0,4 5,4 4,3 0,2 1,9 9,0 Avg. stake PRE 21%: 32% Opportunistic/ Value Added 4% Core/ Core Plus Residential Tourism Commercial Land for Sale NPL (**) TOTAL (*) Asset Allocation (market value) pro-forma including binding preliminary agreements as of today (acquisition value); the average ownership share is calculated considering: a) for the DGAG portfolio and for the Retail&Entertainment Fund the final ownwrship (as a pecentage) agreed by contract; b) for Tecla and Berenice the post tender offer situation. FIP has not been included (**) Net Book Value (***) Non patecipated funds amount to 0,7bn in 2007 and approx. for 2bn in

10 PRE AUM* (market value): Real Estate only 1/2 JUNE ,5 Bn JUNE ,6 Bn Germany / Poland 27% Greater Milan 26% Rome 16% Germany/ Poland 14% Greater Milan 28% Rome 17% Other Italy 16% Main Italian cities 15% Other Italy 27% Major Italian cities 14% (*) Asset Allocation (market value) pro-forma with binding agreements as of today (acquisition value) without FIP 7

11 PRE AUM* (market value): Real Estate only 2/2 June ,5 Bn Core vs Opportunistic/Value Added Portfolio Opportunistic/Value Added Portfolio 61% December ,3 Bn (pro forma excl. FIP) Core vs Opportunistic/Value Added Portfolio Opportunistic/Value Added Portfolio 63% Core 39% 53% of portfolio in Italy 44% of portfolio in Italy Core 37% SPV 27% Funds vs SPV Italy only - AUM 9,9 Bn Funds vs SPV Italy only AUM 9,6 Bn SPV 34% Funds 73% (*) Asset Allocation (market value) pro-forma with binding agreements as of today (acquisition value) without FIP Funds 66% 8

12 Investment & Asset Management Income Statement Highlights INVESTMENT & ASSET MANAGEMENT ACTUAL JUNE 2007 INVESTMENT & ASSET MANAGEMENT ACTUAL JUNE Pro-quota Aggregate Revenues Investment FM & AM 473,5 48,1 518,6 FM Total Investment Total Growth % & AM 402,3 41,8 437,5 2. EBIT 19,4 6,4 25,8 7,5 15,0 22,5 3. Income from Equity Participations 58,9 4,7 63,6 53,1 3,1 56,2 4. EBIT incl. Income from Equity Participations 78,3 11,1 89,4 60,6 18,1 78,7 14% The result does not include apprx. 6m of success fees already accounted for in the funds' balance sheets and that will be accounted for in PRE's balance sheet in 2H Of which fair value revaluations 46,2 Spazio Office 32,8 Spazio Industrial 6. EBIT incl. Income from Equity Participations net of a Fair Value revaluation 32,1 27,8 15% Note: Total Revenues include intereliminations among sectors. 9

13 Investment & Asset Management Sales & Acquisitions (incl. binding agreements) SALES ACQUISITIONS 1.116, , , ,5 JUNE 2007 JUNE 2006 JUNE 2007 JUNE

14 Services Income Statement Highlights TOTAL SERVICES JUNE Growth % 1. Revenues 4. EBIT 261,3 189,6 2. EBIT before extarordinary items 21,2 27,7 3. Extarordinary items (9,3) 1,7 11,9 29,4 5. Income from Equity Participations 42,3 (1,1) 6. EBIT incl. Income from Equity Participations 54,2 28,2 92% 11

15 Technical Services Income Statement Highlights 214,7 Revenues 143,7 13,1 EBIT 11,2 (*) 79,7 Ingest Facility 0,9 135,0 110,2 111,7 Integrated Facility without Ingest Facility Property M. 12,2 (*) 8,6 6,2 24,8 32,0 3,6 5,0 ACT JUN 2007 ACT JUN 2006 ACT JUN 2007 ACT JUN 2006 ROS JUNE 2007 JUNE 2006 Total without Ingest Facility 9% 8% Integrated Facility without Ingest Facility 8% 6% Property M. 15% 16% (*) Excluding revenue and cost items referred to recently acquired Ingest Facility (EBIT 0.9m) and some negative items for -5,7 m attributable to Property Management referred to ; in ,7 m for the disposal of an asset within Facility Management are not included 12

16 Commercial Services Income Statement Highlights Revenues EBIT 36,6 49,6 6,7(*) 16,5 Commercial Services ACT JUN 2007 ACT JUN 2006 ACT JUN 2007 ACT JUN 2006 ROS JUNE 2007 JUNE2006 Commercial Services 18% 33% (*) Extraordinary expenses for 4,5 m of which 2,0 m for the optimization of the Franchising Network are not included Following the postponement of the sales activity due to the preparation of the new office platform, the value of assets dealt by the Agency as at June amounts to 759,8 m compared with 1.188,8 m in the same period last year. 13

17 Credit Servicing Income Statement Highlights 16,5 Revenues NS 2,4 EBIT NS Credit Servicing ACT JUN 2007 ACT JUN 2006 ACT JUN 2007 ACT JUN 2006 ROS JUNE 2007 JUNE 2006 Credit Servicing 15% NS NOTE: A comparison with 2006 result is not possible since the company was not consolidated line by line 14

18 Annexes

19 Income Statement Breakdown by activity TOTAL ACTUAL JUNE 2007 INVESTMENT & ASSET MGMT SERVICES OTHER 1. Total Aggregate Revenues 2. Pro-quota Aggregate Revenues 3. Consolidated Revenues (*) 4. EBIT 5. Income from Equity Participations (**) 6. EBIT incl. Income from Equity Participations 7. P.B.T , ,6 811,9 518,6 421,8 164,9 19,4 25,8 105,9 63,6 125,4 89,4 101,9 68,5 TOTAL ACTUAL JUNE 2006 INVESTMENT & ASSET MGMT 340,9 16,5 296,0 16,5 261,3 16,5 11,9 (18,4) 42,3 0,1 54,2 (18,2) 51,7 (18,3) SERVICES OTHER 8. Total Aggregate Revenues 9. Pro-quota Aggregate Revenues 10. Consolidated Revenues (*) 11. EBIT 12. Income from Equity Participations (**) 13. EBIT incl. Income from Equity Participations 14. P.B.T , ,4 673,5 437,5 308,4 112,5 37,7 22,5 54,6 56,2 92,3 78,7 91,7 79,1 267,4 35,9 225,9 31,1 189,7 27,2 29,4 (14,2) (1,1) (0,4) 28,2 (14,6) 27,4 (14,8) (*) Impact of DGAG assets deconsolidation for 529,9 m in 2007 not included (**) Including dividends from funds for 1,9 m in 2007 and 1,8 m in In addition to this, 2007 result include capital gains for 42,1 m resulting from the creation of the new JV in Facility Management with Banca Intesa Note: Total Revenues include intereliminations among sectors 15

20 Investment & Asset Management Income Statement Highlights JUNE TOTAL INVESTMENT AND ASSET MANAGEMENT REAL ESTATE INVESTMENT AND ASSET MANAGEMENT NPL Total Aggregate Revenues 1.584,6 1421, , ,6 8,4 7,8 2. Pro-quota Aggregate Revenues 518,6 437,5 510,4 429,7 8,2 7,8 3. Consolidated Revenues (*) 164,9 112,5 156,8 104,8 8,1 7,7 4. EBIT 25,8 22,5 24,2 19,4 1,7 3,1 5. Income from Equity Participations 63,6 56,2 58,7 54,0 4,9 2,2 6. EBIT incl. Income from Equity Participations 89,4 78,7 82,8 73,4 6,6 5,2 7. P.B.T. 68,5 79,1 61,3 73,4 7,2 5,7 DATI GESTIONALI 8. Sales 1.116, , , ,6 0,3 0,1 9. Capital Gains(**) 373,8 396,9 373,8 396,8 0,1 0,0 10. Pro-quota Sales 338,8 320,1 338,6 320,0 0,1 0,1 11. Pro-quota Capital Gains (**) 104,2 127,8 104,2 127,8 0,0 0,0 12. Margin % (excluding Fair Value revaluation) 21% 29% 21% 29% %. 37%. 0,0 13. Assets and NPL acquisitions completed as at 30/6 627, ,3 345, ,7 282,2 662,6 (*) Impact of DGAG assets deconsolidation for 529,9 m in 2007 not included (**) Total Capital Gains referred to Investment e Asset Management Real Estate, include Fair Value adjustment according to IAS 40 for 140,7 mi (46,2 m proquota) in 2007 and for 93,8 m ( 32,8 m pro-quota) in Note: Total Revenues include intereliminations among sectors 16

21 Commercial Services and Credit Servicing Income Statement Highlights (1/2) COMMERCIAL SERVICES CREDIT SERVICING ACTUAL JUNE 2007 ACTUAL JUNE 2006 ACTUAL JUNE 2007 ACTUAL JUNE Consolidated Revenues 2 EBIT 3 Income from Equity Participations 4 EBIT incl. Income from Equity Participations 5 P.B.T. 36,6 49,6 2,1 16,5 0,0 0,0 2,1 16,5 2,1 16,6 16,5 0,0 2,4 0,0 0,0 (0,7) 2,4 (0,7) 2,3 (0,7) 6 R.O.S. 6% 33% 15%. n.s. 7 R.O.S. Adjusted (*) 18% 33% 15%. n.s. MANAGEMENT ACCOUNTS 8 Sales + Preliminary Agreements 9 Revenues by Employee /000 (Annualised) 10 N Employees 759,8 1188,8 360,6 435, ,6 n.s (*) Following the postponement of the sales activity due to the preparation of the new office platform, the value of assets dealt by the Agency as at June amounts to 759,8 m compared with 1.188,8 m in the same period last year. In addition to that, extraordinary expenses have been charged for 4,5 m of which 2,0 m for the optimization of the Franchising Network Note 1: Credit Servicing headcount not consolidated as of June Note 2: Total Revenues include intereliminations among sectors 17

22 Technical Services Income Statement Highlights (2/2) FACILITY/PROJECT MANAGEMENT PROPERTY MANAGEMENT TOTAL TECHNICAL SERVICES ACTUAL JUNE 2007 ACTUAL JUNE 2006 ACTUAL JUNE 2007 ACTUAL JUNE 2006 ACTUAL JUNE 2007 ACTUAL JUNE Consolidated Revenues 189,9 111,7 24,8 32,0 214,7 143,7 2 EBIT 9,4 7,9 (2,1) 5,0 7,3 12,9 3 Income from Equity Participations 4 EBIT incl. Income from Equity Particip. 5 P.B.T. 42,3 (0,5) 51,7 7,4 49,7 6,8 0,0 0,0 (2,1) 5,0 (2,4) 4,7 42,3 (0,5) 49,6 12,4 47,3 11,5 6 R.O.S. 5%. 7% n.s. 16% 3% 9%. 7 R.O.S. Adjusted (*) 8%. 6%. 15%. 16%. 9%. 8%. MANAGEMENT ACCOUNTS 8 Revenues by Employee /000 (Annualised) 9 N Employees 338,2 334,4 216,6 215, (**) ,6 297, (*) Excluding revenue and cost items referred to recently acquired Ingest Facility and some negative items attributable to Property Management referred to for -5,7 m ; in ,7 m for the disposal of an asset within Facility Management are not included (**) of which 311 employees of Ingest Italia and 38 of Ingest Polonia Note: Total Revenues include intereliminations among sectors 18

23 Mr. Gerardo Benuzzi, the Senior Manager in charge of Pirelli RE's financial reporting, attests in compliance with art. 154-bis paragraph 2 of Legislative Decree 58/1998 that the accounting information contained in this presentation corresponds to the underlying documentary records, books of account and accounting entries.