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


• Sales volume:

• € 58 – 60 mn


• 04/2014 / 09/2015

RE

SID

EN

TIA

L

Central Living,

Frankfurt


• GFS above ground:

7,423 m²



• BA II: 02/2014 / 02/2016

Holiday Inn,

Munich

• Category: Holiday Inn

Express

• Rooms: 302

• Operator: IHG


• 04/2014 / 11/2016

Hyatt Regency,

Amsterdam

• Category: 5*

• Rooms: 211

• Operator:

• Hyatt Regency


• 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


• 04/2015 / 12/2016

Bessie-Coleman-Str. 16

60549 Frankfurt a. M.

Holiday Inn,

Berlin

• Category: Holiday Inn

Express

• Rooms: 184

• Operator: IHG


• 04/2015 / 11/2016

Klosterstaße 48

Berlin

KAHN 1,

Graz



3,648 m²



• 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


• 06/2014 / 09/2015

Trikot,

Munich

• Land area: 4,886

m²


• 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,

• 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



• 12,453 m²


• 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*)


Land area: 1,014 m²

GFS: 11,300 m²

Serviced apartments: 175


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

[email protected]

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%

mailto:[email protected]

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

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