Deutsche EuroShop | Conference Call Presentation - Quarterly Statement H1 2017
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- The document is Deutsche EuroShop's half-year financial report for 2017, which includes key financial figures and performance metrics for H1 2017. - Retail turnover in German centers declined slightly by 0.4% on a like-for-like basis in H1 2017, while international turnover grew by 3.6%. - Key financial highlights include a 15.5% increase in consolidated profit to €56.2 million and a 7.8% rise in FFO per share to €1.25, driven by contributions from acquisitions. - The company forecasts further growth in 2018, with projected increases in FFO, FFO per share, EBT excluding valuation, revenue and E
Deutsche EuroShop | Conference Call Presentation - Quarterly Statement H1 2017
- 1. 16 AUGUST 2017 CONFERENCE CALL HALF-YEAR FINANCIAL REPORT 2017
- 2. RETAIL TURNOVER H1 20171 2 1 German centers on a like-for-like basis (turnover: €2.2 billion) 2 The sum may not equal the totals due to rounding RETAILERS Retail sector % change to 2016 rent-to-sales ratio in % % of sales % of space Department stores -1.4 6.3 7.3 13.0 Food -1.1 7.6 8.7 6.2 Fashion textiles -1.5 12.2 29.4 39.5 Shoes & leather goods -2.3 14.8 5.2 6.5 Sports -3.8 9.6 4.0 5.0 Health & beauty -1.3 7.2 11.8 6.0 General retail -3.0 10.9 8.6 9.3 Electronics +5.2 3.8 15.2 8.4 Services +5.0 4.8 5.0 1.8 Food catering +1.0 12.5 4.8 4.3 Total -0.4 9.1 1002 1002 Retail turnover development on a like-for-like basis: Germany -0.4%, abroad +3.6% DES-Portfolio overall: +0.4% Absolute turnover development: Germany +0.1%, abroad +4.0% DES-Portfolio overall: +0.8% 16 August 2017 Conference Call – Half-year Financial Report 2017
- 3. PROFIT AND LOSS ACCOUNT H1 2017 1 incl. at equity FINANCIALSin € thousand 01.01. – 30.06.2017 01.01 – 30.06.2016 Change Revenue 105,795 101,830 3.9% Property operating and management costs -10,451 -10,120 Net operating income 95,344 91,710 4.0% Other operating income 342 502 Other operating expenses -3,190 -3,387 EBIT 92,496 88,825 4.1% Other financial income and expenses 1,498 1,048 Interest expense -26,914 -27,138 At equity result 15,272 11,205 Profit/loss attributable to limited partners -9,319 -8,900 Net finance costs -19,463 -23,785 18.2% EBT 73,033 65,040 12.3% Measurement gains/losses1 -2,608 -4,985 Taxes -2,568 -2,555 Deferred Taxes1 -11,624 -8,827 Consolidated profit 56,233 48,673 15.5% 316 August 2017 Conference Call – Half-year Financial Report 2017
- 4. KEY FIGURES H1 2017 FINANCIALS30.06.2017 30.06.2016 Change FFO per Share (€) 1.25 1.16 7.8% Earnings per share (€, undiluted) 0.99 0.90 10.0% EPRA Earnings per share (€, undiluted) 1.20 1.11 8.1% 416 August 2017 Conference Call – Half-year Financial Report 2017
- 5. FUNDS FROM OPERATIONS (FFO) 1 The sum of the amounts may not equal the totals due to rounding ² Including the share attributable to equity-accounted joint ventures and associates ³ Under the assumption that the convertible bond has been fully converted at the end of its term in November 2017 FINANCIALSin € thousand 30.06.2017 per share1 30.06.2016 per share1 Consolidated net profit 56,233 €0.99 48,673 €0.90 + Measurement gains/losses investment properties² 2,608 €0.05 4,985 €0.09 + Bond conversion expense 484 €0.01 484 €0.01 + Deferred taxes² 11,624 €0.20 8,826 €0.16 FFO (undiluted) 70,949 €1.25 62,968 €1.16 FFO (after conversion)³ 70,949 €1.22 Weighted number of no-par value shares issued 56,754,256 53,945,536 Weighted number of no-par value shares issued (after conversion)³ 57,977,135 516 August 2017 Conference Call – Half-year Financial Report 2017
- 6. EARNINGS PER SHARE (EPRA) 1 The sum of the earnings per share amounts may not equal the totals due to rounding ² Including the share attributable to equity-accounted joint ventures and associates ³ These concern deferred taxes on investment properties and derivative financial instruments 4 Under the assumption that the convertible bond has been fully converted on 1 January of the respective year in € thousand 30.06.2017 per share1 30.06.2016 per share1 Consolidated net profit 56,233 €0.99 48,673 €0.90 + Measurement gains/losses investment properties² 2,608 €0.05 4,985 €0.09 + Measurement gains/losses derivative financial instruments² -1,751 -€0.03 -1,002 -€0.02 + Acquisition costs 276 €0.00 358 €0.01 + Deferred taxes related to EPRA adjustments²,³ 10,607 €0.19 6,996 €0.13 EPRA Earnings 67,973 €1.20 60,010 €1.11 Expense for convertible bond 1,172 1,172 EPRA Earnings (diluted) 69,145 €1.15 61,182 €1.07 Weighted number of no-par value shares issued 56,754,256 53,945,536 Weighted number of no-par value shares issued (diluted)4 60,021,528 57,211,375 FINANCIALS 616 August 2017 Conference Call – Half-year Financial Report 2017
- 7. BALANCE SHEET H1 2017 1 incl. non controlling interests FINANCIALSin € thousand 30.06.2017 31.12.2016 Change Non-current assets 4,467,048 4,036,533 430,515 Current assets 137,775 77,924 59,851 Total assets 4,604,823 4,114,457 490,366 Group equity 2,058,399 1,916,148 142,251 Right to redeem of limited partners 324,596 324,559 37 Total equity 2,382,995 2,240,707 142,288 Financial liabilities 1,649,780 1,445,581 204,199 Deferred tax liabilities 425,222 359,365 65,857 Other liabilities 146,826 68,804 78,022 Total equity and liabilities 4,604,823 4,114,457 490,366 30.06.2017 31.12.2016 Equity ratio1 51.7% 54.5% LTV ratio 34.5% 34.2% 716 August 2017 Conference Call – Half-year Financial Report 2017
- 8. LOAN STRUCTURE INCL. CONVERTIBLE BONDS1,2 1 as of 30 June 2017 2 excl. non-consolidated loans FINANCIALSInterest lockin Duration Principle amounts (€ million) Share of total loan avg. interest rate Up to 1 year 110.4 6.7% 1.94% 1 to 5 years 3.5 600.0 36.4% 4.04% 5 to 10 years 6.9 689.4 41.9% 2.78% Over 10 years 10.5 247.7 15.0% 2.59% Total1 5.4 1,647.5 100% 2.98% 3.88 3.76 3.69 3.67 2.98 0 1 2 3 4 5 6 7 8 2.50 3.00 3.50 4.00 2013 2014 2015 2016 2017 avg. interest rates weighted maturities yrs% 21 German and 4 foreign bank partners Weighted maturity of fixed interest periods 5.4 years1 Conference Call – Half-year Financial Report 2017 816 August 2017 1
- 9. Convertible Bond in € million End of fixed interest periods respectively expiring loans Avg. interest rate DES‘ share 2017-2019 0 2020 35.0 4.00% 50% 2021 48.6 4.65% 50% 2022 12.1 4.90% 50% MATURITIES UNTIL 20221,2 1 as of 30 June 2017 2 excl. non-consolidated loans in € million end of fixed interest periods respectively expiring loans avg. interest rate regular redemption payments total maturities 2017 99.5 1.75% 10.2 109.7 2018 148.3 2.49% 22.3 170.6 2019 123.1 4.73% 18.9 142.0 2020 134.1 4.52% 18.2 152.3 2021 198.3 4.48% 14.8 213.1 2022 217.8 3.26% 16.5 234.3 844.1 FINANCIALS Conference Call – Half-year Financial Report 2017 916 August 2017 Non-consolidated loans1 Phoenix-Center Hamburg Saarpark-Center Neunkirchen Saarpark-Center Neunkirchen Already fixed: Allee-Center Hamm: €4.9m, 1.68%, 6y Altmarkt-Galerie Dresden: €71.6m, 1.63%, 10y
- 10. REVENUE BRIDGE H1 2017 FINANCIALS€m 101.8 -1.1 = -1.1%+5.1 105.8 H1 2016 Olympia Center, Brno Standing assets H1 2017 1016 August 2017 Conference Call – Half-year Financial Report 2017
- 11. NET FINANCE COST BRIDGE H1 2017 1 Olympia Center, Brno ² Saarpark-Center, Neunkirchen FINANCIALS€m -25.5 +0.5 -19.9 +1.1 -0.9 H1 2016 Interest expense (without OCB ) Interest OCB Other financial income Minority profitshare at-equity (without SPN ) at-equity (SPN ) H1 2017 1.5 1116 August 2017 -26.0 -0.4 -9.3-0.9 Conference Call – Half-year Financial Report 2017 +2.7 1 2 2 2.6 12.2 +2.6 1
- 12. EBT BRIDGE H1 2017 1 Olympia Center, Brno ² Saarpark-Center, Neunkirchen 3 Without valuation result and swaps €m 60.1 +1.3 = +2.0% +0.7 70.3 +2.4 +3.4 H1 2016 Valuation result Swaps OCB SPN Other H1 2017 FINANCIALS 1216 August 2017 Conference Call – Half-year Financial Report 2017 +2.4 1, 3 2, 3
- 13. PROFIT BRIDGE H1 2017 1 Olympia Center, Brno 2 Saarpark-Center, Neunkirchen 3 Without valuation result and swaps €m FINANCIALS 48.7 +2.8 +0.6 56.2 +1.7 +2.1 H1 2016 Valuation result Swaps OCB SPN Other H1 20171, 3 1316 August 2017 Conference Call – Half-year Financial Report 2017 +0.3 = +0.6% 2, 3
- 14. FORECAST FINANCIALS 16 August 2017 14 1 Compound Annual Growth Rate (CAGR) 2014 - 2018 2 weighted, under the assumption that the convertible bond has been fully converted at the end of its term in November 2017 Conference Call – Half-year Financial Report 2017 FFO €m 120.5 123.4 129.9 140- 143 145- 148 2014 2015 2016 2017 2018 +5.0%1 NUMBER OF SHARES2 mn 53.95 53.95 53.95 57.98 61.78 2014 2015 2016 2017 2018 +3.4%1 FFO PER SHARE € 2.23 2.29 2.41 2.42- 2.46 2.35- 2.39 2014 2015 2016 2017 2018 +1.5%1 EBT EXCL. VALUATION €m 125.0 127.0 134.5 145- 148 154- 157 2014 2015 2016 2017 2018 +5.6%1 REVENUE €m 200.8 202.9 205.1 216- 220 220- 224 2014 2015 2016 2017 2018 +6% +2% +2.5%1 EBIT €m 177.5 176.3 178.6 187- 191 193- 197 2014 2015 2016 2017 2018 +2.4%1 +6% +3% +7% +7% +9% +6% +9% +4% +1% -3%
- 15. OUTLOOK COMPANY in divide to €r share for FY 2016 Increase in dividend to 1.45€ per share for FY 2017 Further optimization of financing costs The investment market remains hot We see a clear overdemand, especially in Germany DES is very selectively analyzing sales offers as they come to the market 1516 August 2017 Conference Call – Half-year Financial Report 2017
- 16. KEY DATA OF THE SHARE APPENDIX Listed since 02.01.2001 Nominal capital €58,527,236.00 Outstanding shares 58,527,236 Class of shares Registered shares Dividend 2016 (3 July 2017) €1.40 52W High €42.15 52W Low €33.82 Share price (14 August 2017) €34.69 Market capitalisation €1.99 billion Avg. turnover per day last 12 months (XETRA) 143,700 shares Indices MDAX, EPRA, GPR, MSCI Small Cap, EURO STOXX, STOXX Europe 600 Official market Prime Standard Frankfurt and XETRA OTC market Berlin-Bremen, Dusseldorf, Hamburg, Hanover, Munich and Stuttgart ISIN DE 000 748 020 4 Ticker DEQ, Reuters: DEQGn.DE Market maker Oddo Seydler 16 August 2017 Conference Call – Half-year Financial Report 2017 16
- 17. FINANCIAL CALENDAR APPENDIX 2017 Conference Call – Half-year Financial Report 2017 1716 August 2017 15.08. Half-year Financial Report 2016 04.-05.09. DES Real Estate Summer, Brno 12.-13.09. BoA Merrill Lynch Global RE Conf., New York 18.09. Goldman Sachs & Berenberg German Conf., Munich 19.09. Baader Investment Conf., Munich 29.09. Societe Generale Pan European RE Conf., London 04.-06.10. Expo Real, Munich 06.-07.11. Roadshow Tel Aviv 15.11. Quarterly Statement 9M 2017 16.11. Natixis European Mid Caps Conf., Paris 17.11. Roadshow Amsterdam, Societe Generale 17.11. Roadshow Brussels, Kempen & Co 21.11. DZ Bank Equity Conf., Frankfurt 05.12. Berenberg European Conf., Pennyhill 11.-12.12. HSBC Global RE Conf., Cape Town 18.12.-19.12. Roadshow Abu Dhabi & Dubai, Berenberg
- 18. CONTACT Important Notice: Forward-Looking Statements Statements in this presentation relating to future status or circumstances, including state- ments regarding management’s plans and ob- jectives for future operations, sales and earn- ings figures, are forward-looking statements of goals and expectations based on estimates, as- sumptions and the anticipated effects of future events on current and developing circumstan- ces and do not necessarily predict future re- sults. Many factors could cause the actual results to be materially different from those that may be expressed or implied by such statements. Deutsche EuroShop does not intend to update these forward-looking statements and does not assume any obligation to do so. APPENDIX 1816 August 2017 Deutsche EuroShop AG Investor & Public Relations Heegbarg 36 22391 Hamburg Tel. +49 (40) 41 35 79 – 20/ – 22 Fax +49 (40) 41 35 79 – 29 E-Mail: [email protected] Web: www.deutsche-euroshop.com Conference Call – Half-year Financial Report 2017 ir-mall.com facebook.com/euroshop flickr.com/desag slideshare.net/desag twitter.com/des_ag youtube.com/DeutscheEuroShop PATRICK KISS Head of IR NICOLAS LISSNER IRO WILHELM WELLNER CEO OLAF BORKERS CFO