UBM Development. A Trade Developer of European scale

Transcription

1 UBM Development A Trade Developer of European scale

2 Disclaimer This presentation was prepared by UBM Realitätenentwicklung Aktiengesellschaft ( the Company ; UBM Development ) solely for use at investors meetings and is furnished to you solely for informational purposes. This presentation dates as of. The facts and information contained herein might be subject to revision in the future. Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. None of the Company or any of its parents or subsidiaries or any of such person's directors, officers, employees or advisors nor any other person makes any representation or warranty, express or implied as to, and no reliance should be placed on, the accuracy or completeness of the information contained in this presentation. None of the Company or any of its parents or subsidiaries or any of their directors, officers, employees and advisors nor any other person shall have any liability whatsoever for any loss howsoever arising, directly or indirectly, from any use of this presentation. The same applies to information contained in other material made available at the meeting. This document is selective in nature and is intended to provide an introduction to, and overview of, the business of the Company. Wherever external source are quoted in this presentation, such external information or statistics should not be interpreted as having been adopted or endorsed by the Company as being accurate. This presentation contains forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which the Company operates. These statements generally are identified by words such as "believes", "expects", "predicts", "intends", "projects", plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements, including but not limited to assumptions, opinions and views of the Company or information from third party sources, contained in this presentation are based on current plans, estimates, assumptions and projections and involve uncertainties and risks. Various factors could cause actual future results, performance or events to differ materially from those described in these statements. The Company does not represent or guarantee that the assumptions underlying such forward-looking statements are free from errors nor do they accept any responsibility for the future accuracy of the opinions expressed in this presentation. No obligation is assumed to update any forward-looking statements. By accepting this presentation you acknowledge that you will be solely responsible for your own assessment of the market and of the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company s business. 1

3 UBM Development Company Highlights 2014 PRO-FORMA FIGURES Highlights 2 Production output shows strong plus of EUR 196m [+68%] up to EUR 483m EBITDA Margin improved by EUR 15m [3.3%] up to EUR 57m significantly Net income increased strongly by EUR14m [>100%] to EUR 28m Doubled payout per share 1 planned increasing from EUR 0.62 to EUR 1.25 Successful top-down merger of PIAG onto UBM Successful sales program reducing stock of assets 1 General Shareholder Meeting decision pending 2 Compared based on Pro-Forma 2014 UBM Development versus 2013 IFRS UBM (stadalone) 2

4 TIMELINE OVERVIEW UBM Development combines the strengths of UBM and S+P Milestones in UBM's history 1873: UBM listed on Vienna Stock Exchange : UBM enters CZ, PL and GER 2000: S+P founded, asset-light approach : UBM enters opportunistic markets with hotels (FR, NL) 2015/2016: Capital increase planned Realization of synergies New strategy: divestment of asset management portfolio Clear dividend policy 1990: Transformation from real-estate company to trade developer 2014/2015: Spin off and Merger of UBM and Strauss & Partner UBM Independent developer 2016/2017: Pure-play developer Portfolio reduction completed Goal: Prime Market at Vienna Stock Exchange 3

5 CAPITAL MARKET STRATEGY UBM Development with stronger capital market focus and attractive dividend development Capital Market Strategy Strong capital market focus and commitment to active investor relations approach Dividend per share Shareholder Structure Capital increase in 2015 to enable further growth, strengthen equity ratio and increase free float Listing on Standard Continuous Market planned for end of April at the latest, Goal: Prime Market % Free Float 40.7% Management + Supervisory Board 11.0% Syndicate (Ortner/ Strauss) 48.3% Dividend policy going forward, aiming for payout ratio 2 of 30-50% 4 1 Subject to decision of Annual General Meeting 2 Based on net income of the period 14

6 COMPANY OVERVIEW UBM Development at a glance UBM Development Key Facts Strong track record continuous improvement of net profit over recent 25 years Strategic shift from asset management towards asset light pure play trade developer Integrated group will lead to increased capacity of project development resources Lean company structure should lead to increase of profitability and dividend UBM Financials EURm PRO-FORMA FIGURES Total assets 631 1,077 Equity Production Output EBITDA EBIT Net income Strategy Areas of Operation, based on book value 3 Focus on three growth markets (Austria, Germany and Poland) and three asset classes (residential, office and hotel) Continuous product development and sale along the cash re-investment cycle Consistent cycle speed and high deal flow mitigates business model risk Asset light approach: Operating in partner structures where projects are not fully consolidated New capital market approach Austria Germany Poland Other 40% 26% 24% 10% Country Distribution Residential Office Hotel Landbank Other 11% 29% 23% 20% 17% Asset Classes 5 1 UBM Realitätenentwicklung stand-alone 2 Preliminary Pro-forma UBM Development (01/01/ /12/2014) including PIAG Immobilien AG 3 Book value only consists of completed projects and the percentage of completion for developments

7 PURE-PLAY DEVELOPER UBM Development s competitive strengths along the cash re-investment cycle Reinvestment & dividends Proceeds from high sales turnover rate used for future projects and dividends Acquisition Local network & know-how: helps securing attractive locations, converting land, acquiring permits Good reputation: makes UBM partner of choice Standardized due diligence to minimize risk Concept and design In-house experts carry out all customer-facing activities High level of cost control and flexibility 6 Optimized exit timing & yield Established contacts: help identifying right buyers Central transaction team & experience: higher number & frequency of transactions Good reputation: investors want to participate early in project Established strengths guarantee optimal development process Asset-light approach Operating in partner structures where projects are not fully consolidated Furthermore, engaging in forward deals to limit capital exposure Implementation Overpriced tenders prevented by in-house experts Tight cost and quality control during execution Flexible on-site management through in-house project managers

8 Value Add VALUE GENERATION Typical value-add potential of a fully-integrated real estate developer Development process broken down into key steps Development process by step Schematic illustration of the value add development Illustration "Green field" Development of green field Developed plot Development planning Pre-Marketing of property General Contracting Construction Exit with insignificant discount possible in earlier stages of development in current market environment Finalized project Marketing of property/ hotel management Divested building 7

9 Market attractiveness DIVERSIFICATION Go-to-market approach defined in terms of markets and asset classes Geographies: Targeting European metropolitan regions with high growth dynamics Segments: Increasing focus on Residential and Hotel while maintaining a diversified portfolio "Follow the Customer" European metropolitan regions with growth potential Focus on hotel Successful examples: Amsterdam, Paris Focus on Growth Top metropolitan areas in Germany, such as Frankfurt, Berlin, Munich, Hamburg, Stuttgart, Cologne, and Düsseldorf plus Vienna, Warsaw, Krakow Strengthen the Core Other large cities in core markets such as Graz, Salzburg (AT), Wroclaw (PL) Strategy for Sector relative share Details / Approach Residential Focus on mid- and high price segment Close look on attractive niches markets (e.g., student or elderly housing) Hotel Focus on European cities with top RevPar-development 1 Coverage of 3* to 5* segments, long stay apartments, and boarding houses Office Focus on CBD locations and business parks with good public infrastructure (e.g., near airports) Reduced share due to high volatility in the segment No coverage Market experience Deepen basis Other Combination of multiple asset classes in one project or other legacy assets Opportunistic approach due to limited number of projects 1 RevPar = Revenue per Room Available 8

10 HOTEL RESIDENTIAL DIVERSIFICATION Attractive project pipeline in metropolitan cities (1/2) St. Peter, Graz Land area: 1,740 m² Number of units: 36 Sales volume: 7,5 mn 05/2014 / 07/2015 Keibelstraße, Berlin Land area: 3,944 m² Sales volume: mn 04/2014 / 09/2015 Central Living, Frankfurt Land area: 3,643 m² GFS above ground: 7,423 m² Number of units: 78 BA II: 02/2014 / 02/2016 KAHN 1, Graz Land area: 4,549 m² GFS above ground: 3,648 m² Number of units: 48 07/2014 / 07/2016 St. Peter Hauptstraße Graz Keibelstraße Berlin Friedrich-Dessauer Straße Frankfurt a. M. Kahngasse Graz Holiday Inn, Berlin Category: Holiday Inn Express Rooms: 184 Operator: IHG 04/2015 / 11/2016 Holiday Inn, Munich Category: Holiday Inn Express Rooms: 302 Operator: IHG 04/2014 / 11/2016 Gateway Gardens, Frankfurt Category: 3-4* Rooms: /2015 / 12/2016 Hyatt Regency, Amsterdam Category: 5* Rooms: 211 Operator: Hyatt Regency 2015 / Klosterstaße 48 Berlin Birketweg Munich Bessie-Coleman-Str Frankfurt a. M. Sarphatistraat GV Amsterdam

11 MIXED OFFICE DIVERSIFICATION Attractive project pipeline in metropolitan cities (2/2) Arena Boulevard, Berlin Land area: 1,692 m² ~ 8,700 m² GFS above ground 06/2014 / 09/2015 Trikot, Munich Land area: 4,886 m² GFS above ground: 12,976 m² 04/2013 / 04/2015 Poleczki Business Park, Warsaw Poleczki B2: Land area: 6,533 m² GFS above gr. 9,600 m², in construction Poleczki B3: land area: 7,668 m² GFS above ground 9,600 m², 01/2016 / 04/2017 Poleczki C2: Land area: 7,700 m² GFS above ground 14,600 m², Start / Completion : 01/2017 / 06/2018 Am Ring 20, Munich Land area: 9,190 m² GFS above ground: 12,453 m² 04/2015 / 04/2017 Valeska-Gert Straße Berlin Elsenheimerstraße Munich Poleczki Warsaw Leuchtenbergring Munich Office: Residential: QBC ½ land area: 6,531 m² / GFS 47,000 m² / QBC 3 land area: 1,090 m² / GFS 8,900 m² / QBC 4 land area: 2,510 m² / GFS 20,000 m² / Hotel: Land area: 2,362 m² GFS: 14,100 m² (incl. loggia) Sales volume: 35.7 mn Number of apartments: 135 Start / Completion: 2015 / 2017 Boarding-House: 10 Category: 3- and 4 star Rooms: 311 (3*) and 266 (4*) Operator: Accor / Ibis (3*) and Novotel (4*) Start / Completion: 2015 / 2016 Land area: 1,014 m² GFS: 11,300 m² Serviced apartments: 175 Start / Completion: 2015 / 2017 Quartier Belvedere Central, Main Railway Station, Vienna, Austria

12 Financials 11 14/04/15

13 Consolidated income statement (UBM stand alone until 2013 and 2014 pro-forma including PIAG) PRO-FORMA FIGURES m (pro-forma) (UBM stand alone) (UBM stand alone) Produktionoutput 482,6 286,7 258,3 Sales revenues 315, Own work capitalized in non-current assets 27, Other operating income 12, Result from associated companies 24, Material expenses and other services (244,6) (145.5) (83.8) Personnel expenses (34,2) (20.4) (17.9) Other operating expenses (45,0) (34.8) (30.1) EBITDA 56, Depreciation & amortization (3,3) (2.5) (2.4) EBIT 53, Financial results (22,1) (11.6) 0.8 EBT 31, Taxes on income (3,2) (4.3) 0.8 Net income 28,

14 Consolidated balance sheet (UBM stand alone until 2013 and 2014 pro-forma including PIAG) PRO-FORMA FIGURES m (pro-forma) (UBM stand alone) (UBM stand alone) Total assets 1, Non-current assets Current assets Shareholders equity Equity ratio 24.6% 26.0% 24.2% Current liabilities Non-current liabilities Net debt Earnings per share ( ) Dividends per share ( ) Payout ratio 28.7% 29.0% 27.0% 13 1 Subject to decision of Annual General Meeting

15 IR Information for UBM Development Share Information Shareholder structure Merger PIAG/UBM 19 Feb 2015 Share price 1 40,00 EUR Market capitalisation 240 m EUR Official market Vienna Stock Exchange Std. Auction Market No indices Number of shares 6,010,000 outstanding Ticker symbol UBS VI ISIN AT Free Float 40.7% Management + Supervisory Board 11.0% Syndicate (Ortner/ Strauss) 48.3% IR Calendar Annual report Press conference Q th Annual General Meeting Trade Ex-dividend Payment dividend Half-year report Q IR Contact Do you have any questions? For further information please contact the department Investor Relations. Julia Kozielski T +43 (0) investor.relations@ubm.at 14 1 as of April 13 th, 2015

16 COMPANY OVERVIEW EBT and equity development of UBM EBT development ( m) ) EBT Thereof dividend paid Profit and loss transfer agreement Equity development ( m) Positive earnings since 1991 despite of several financial and economic crises Sustainable increase of equity due to stable earnings development and stable dividend policy 1) restated; the comparative figures have been adjusted in accordance to IAS 8 15