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Transcript of UBM Development - Startseiteubm.at/fileadmin/downloads/20150414_UBM_Analyst_Call_final.pdf · 3 UBM...
UBM Development
A Trade Developer
of European scale
April 2015
1
Disclaimer
April 2015
• 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 April 2015. 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.
2
UBM Development – Company Highlights 2014
• 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 share1 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
Highlights2
1 General Shareholder Meeting decision pending
2 Compared based on Pro-Forma 2014 UBM Development versus 2013 IFRS UBM (stadalone)
PRO-FORMA FIGURES
April 2015
3
UBM Development combines the strengths of UBM and S+P
Milestones in UBM's history
TIMELINE OVERVIEW
2000: S+P
founded,
asset-light
approach
1990:
Transformation
from real-estate
company to
trade developer
1873: UBM
listed on
Vienna Stock
Exchange
2001-2010: UBM
enters opportunistic
markets with hotels
(FR, NL)
1992-1999:
UBM enters
CZ, PL and
GER
2015/2016:
• Capital increase planned
• Realization of synergies
• New strategy: divestment of
asset management portfolio
• Clear dividend policy
2016/2017:
• Pure-play developer
• Portfolio reduction
completed
• Goal: Prime Market
at Vienna Stock
Exchange
2014/2015: Spin off and Merger of UBM and Strauss & Partner
UBM
Independent
developer
April 2015
4
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
• 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
Capital Market Strategy Dividend per share
1.25 €
+102%
20141 2013
0.62 €
1 Subject to decision of Annual General Meeting
2 Based on net income of the period
Dividend policy going forward,
aiming for payout ratio2 of 30-50%
Shareholder Structure
Free
Float
40.7%
Syndicate
(Ortner/
Strauss)
48.3%
Management +
Supervisory Board
11.0%
14 April 2015
5
UBM Financials
• 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 Development at a glance
April 2015
• 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
20131 20142 EURm
1 UBM Realitätenentwicklung stand-alone
2 Preliminary Pro-forma UBM Development (01/01/2014 – 31/12/2014) including PIAG Immobilien AG
3 Book value only consists of completed projects and the percentage of completion for developments
Production Output 483 287
EBITDA 57 32
EBIT 54 29
Net income 28 14
UBM Development Key Facts
Strategy Areas of Operation, based on book value3
COMPANY OVERVIEW
40%
10%
Country
Distribution
26%
24% 20%
Asset
Classes
17%
23%
11%
29% Other
Germany
Austria
Poland
Land-
bank
Residential
Other
Hotel
Office
Equity 265 164
Total assets 1,077 631
PRO-FORMA FIGURES
6
Asset-light approach
• Operating in partner structures
where projects are not fully
consolidated
• Furthermore, engaging in for-
ward deals to limit capital
exposure
UBM Development’s competitive strengths along the cash
re-investment cycle
Established strengths
guarantee optimal development
process
PURE-PLAY DEVELOPER
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
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
Reinvestment & dividends
• Proceeds from high sales
turnover rate used for future
projects and dividends
Implementation
• Overpriced tenders prevented
by in-house experts
• Tight cost and quality control
during execution
• Flexible on-site
management
through in-house
project managers
Concept and design
• In-house experts carry
out all customer-facing
activities
• High level of cost
control
and flexibility
April 2015
7
Typical value-add potential of a fully-integrated real estate
developer
April 2015
VALUE GENERATION
Development process broken down into key steps
Construction
Development
planning
Marketing of property/
hotel management
General
Contracting
Pre-Marketing of property
Development of
green field
Divested building
Developed
plot
Finalized project
"Green field"
Development process by step
Schematic illustration of the value add development
Valu
e A
dd
Exit with insignificant
discount possible in
earlier stages of
development in current
market environment
Illustration
8
Geographies: Targeting European metropolitan regions with high
growth dynamics
Segments: Increasing focus on Residential and Hotel while
maintaining a diversified portfolio
Sector
Strategy for
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-development1
• 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
Other • Combination of multiple asset
classes in one project or other
legacy assets
• Opportunistic approach due to
limited number of projects
"Follow the Customer" Focus on Growth
Strengthen the Core
Mark
et
att
racti
ven
ess
Market experience
Deepen basis No coverage
DIVERSIFICATION
1 RevPar = Revenue per Room Available
• European metro-
politan regions with
growth potential
• Focus on hotel
• Successful examples:
Amsterdam, Paris
• Top metropolitan
areas in Germany,
such as Frankfurt,
Berlin, Munich,
Hamburg, Stuttgart,
Cologne, and
Düsseldorf
plus
Vienna, Warsaw,
Krakow
• Other large cities in
core markets such as
Graz, Salzburg (AT),
Wroclaw (PL)
Go-to-market approach defined in terms
of markets and asset classes
April 2015
9
Attractive project pipeline in metropolitan cities (1/2) DIVERSIFICATION
HO
TE
L
2015 2018 15 16 17
• Land area: 1,740 m²
• Number of units: 36
• Sales volume:
€ 7,5 mn
• Start / Completion:
• 05/2014 / 07/2015
St. Peter,
Graz
Keibelstraße,
Berlin
• Land area: 3,944 m²
• Sales volume:
• € 58 – 60 mn
• Start / Completion:
• 04/2014 / 09/2015
RE
SID
EN
TIA
L
Central Living,
Frankfurt
• Land area: 3,643 m²
• GFS above ground:
7,423 m²
• Number of units: 78
• Start / Completion:
• BA II: 02/2014 / 02/2016
Holiday Inn,
Munich
• Category: Holiday Inn
Express
• Rooms: 302
• Operator: IHG
• Start / Completion:
• 04/2014 / 11/2016
Hyatt Regency,
Amsterdam
• Category: 5*
• Rooms: 211
• Operator:
• Hyatt Regency
• Start / Completion:
• 2015 / 2016-2017
St. Peter Hauptstraße 2
8042 Graz
Keibelstraße 6
10178 Berlin
Friedrich-Dessauer Straße
60438 Frankfurt a. M.
Birketweg
80639 Munich
Sarphatistraat 102-104
1018 GV Amsterdam
Gateway Gardens,
Frankfurt
• Category: 3-4*
• Rooms: 288
• Start / Completion:
• 04/2015 / 12/2016
Bessie-Coleman-Str. 16
60549 Frankfurt a. M.
Holiday Inn,
Berlin
• Category: Holiday Inn
Express
• Rooms: 184
• Operator: IHG
• Start / Completion:
• 04/2015 / 11/2016
Klosterstaße 48
Berlin
KAHN 1,
Graz
• Land area: 4,549 m²
• GFS above ground:
3,648 m²
• Number of units: 48
• Start / Completion:
• 07/2014 / 07/2016
Kahngasse 12
8045 Graz
10
Attractive project pipeline in metropolitan cities (2/2) DIVERSIFICATION
OF
FIC
E
2015 2018 15 16 17
Arena Boulevard,
Berlin
• Land area: 1,692
m²
• ~ 8,700 m² GFS
above ground
• Start / Completion:
• 06/2014 / 09/2015
Trikot,
Munich
• Land area: 4,886
m²
• GFS above ground:
• 12,976 m²
• Start / Completion:
• 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,
• Start / Completion: 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
• Start / Completion:
• 04/2015 / 04/2017
Office: Residential:
QBC ½ land area: 6,531 m² /
GFS 47,000 m² / 2016 - 2018
QBC 3 land area: 1,090 m² /
GFS 8,900 m² / 2015 – 2017
QBC 4 land area: 2,510 m² /
GFS 20,000 m² / 2016 - 2017
Land area: 2,362 m²
GFS: 14,100 m² (incl. loggia)
Sales volume: € 35.7 mn
Number of apartments: 135
Start / Completion: 2015 / 2017
Hotel: Boarding-House:
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
Poleczki 35
02-822 Warsaw
Valeska-Gert Straße
10243 Berlin
Elsenheimerstraße 1
80687 Munich
Leuchtenbergring 20
81677 Munich
MIX
ED
11 14/04/15
Financials
12
Consolidated income statement (UBM stand alone until 2013 and
2014 pro-forma including PIAG)
€m 31.12.2014
(pro-forma)
31.12.2013
(UBM stand alone)
31.12.2012
(UBM stand alone)
Produktionoutput 482,6 286,7 258,3
Sales revenues 315,3 217.3 134.0
Own work capitalized in non-current assets 27,4 0.3 0.0
Other operating income 12,9 2.3 7.8
Result from associated companies 24,8 12.7 4.5
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 56,8 31.9 14.5
Depreciation & amortization (3,3) (2.5) (2.4)
EBIT 53,5 29.4 12.1
Financial results (22,1) (11.6) 0.8
EBT 31,4 17.8 12.9
Taxes on income (3,2) (4.3) 0.8
Net income 28,2 13.5 13.7
April 2015
PRO-FORMA FIGURES
13
Consolidated balance sheet (UBM stand alone until 2013 and
2014 pro-forma including PIAG)
€m 31.12.2014
(pro-forma)
31.12.2013
(UBM stand alone)
31.12.2012
(UBM stand alone)
Total assets 1,077.4 630.8 633.0
Non-current assets 726.6 427.7 437.8
Current assets 350.8 203.1 195.2
Shareholders‘ equity 265.3 163.7 153.7
Equity ratio 24.6% 26.0% 24.2%
Current liabilities 250.8 118.6 92.8
Non-current liabilities 561.3 348.5 386.5
Net debt 571 321.9 333.3
Earnings per share (€) 4.35 2.14 2.15
Dividends per share (€) 1.251 0.62 0.55
Payout ratio 28.7% 29.0% 27.0%
1 Subject to decision of Annual General Meeting April 2015
PRO-FORMA FIGURES
14
IR Information for UBM Development
1 as of April 13th, 2015
Do you have any questions?
For further information please contact the
department Investor Relations.
Julia Kozielski
T +43 (0)50 626-3827
Official market
Merger PIAG/UBM 19 Feb 2015
No indices
Share price1 40,00 EUR
Market capitalisation 240 m EUR
Vienna Stock Exchange
Std. Auction Market
Ticker symbol UBS VI
Number of shares
outstanding
6,010,000
ISIN AT0000815402
14.04.2015 Annual report 2014
14.04.2015 Press conference
12.05.2015 Q1 2015
20.05.2015 134th Annual General Meeting
22.05.2015 Trade Ex-dividend 2014
26.05.2015 Payment dividend 2014
27.08.2015 Half-year report 2015
11.11.2015 Q3 2015
IR Calendar 2015
Share Information
IR Contact
Shareholder structure
April 2015
Syndicate
(Ortner/
Strauss)
48.3%
Management +
Supervisory Board
11.0%
Free
Float
40.7%
15
2.6 2.7 3.0 3.3 3.3 3.0 3.3 3.3 3.3 3.7
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
52.4 54.7 58.4 58.3 59.1 59.8 59.4 58.5 60.0 64.4 72.4 72.0 77.6
86.6 90.1 102.0
108.5
122.8 132.5
139.5 144.8 153.7
163.7
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
EBT Profit and loss transfer agreement Thereof dividend paid
EBT development (€m)
Equity development (€m)
4.1
6.8
3.1 3.3
9.3 9.9
16.6 16.8
14.2 14.4 14.6
12.9
17.8
11.2
3.5 3.1
3.9
8.3
4.9
7.2
4.4 3.4
11.4
Positive earnings since 1991 despite of several financial and economic crises
Sustainable increase of equity due to stable earnings development and stable dividend policy
EBT and equity development of UBM
1) restated; the comparative figures have been adjusted in accordance to IAS 8
1)
COMPANY OVERVIEW
April 2015