Company presentation UBM April 2015

UBM Development
A Trade Developer
of European scale
April 2015
Disclaimer
•
•
•
•
•
1
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.
7 April 2015
COMPANY OVERVIEW
UBM Development at a glance
UBM Development Key Facts
• Listed since 1873
• Highly experienced management incentivized
•
•
•
due to direct shareholdings
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
Strategy
• Focus on three growth markets (Austria,
•
•
2
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
UBM Financials
20131
EURm
20142
Total assets
630.8
1,077
Equity
Production Output
163.7
286.7
31.9
265
483
57
EBIT
29.4
54
Net Profit
13.5
28
EBITDA
Areas of Operation, based on book value3
Austria
Residential
Residential
Germany
Office
Hotel
Poland
Hotel
11%
Landbank
29%
Other
40%
Office
14%
Other
33%
Other
26%
23%
38%
24%
20%
10%
17%
16%
Country
Distribution
Asset
Classes
Marked
for Exit
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
7 April 2015
COMPANY OVERVIEW
Highly experienced and committed management team with strong
track record
>40 years of industry
experience and group
tenure
>21 years of industry
experience
Responsibility for:
• Accounting, Controlling, Audit,
Tax, Compliance
Responsibility for:
• Asset Management,
Transaction, Marketing, Legal
>30 years of industry
experience
Heribert Smolé, CFO
Responsibility for:
• Strategy, Communication, IR,
Internal Audit, Risk Management, HR, Integration
Michael Wurzinger, COO
>24 years of industry
experience
>10 years of industry
experience
Responsibility for:
• Development in Austria,
Southeastern Europe, IT, QM
Responsibility for:
• Development in Germany,
Poland, Czech Rep., Western
Europe, Hotel Management
Karl Bier, CEO
Claus Stadler, COO1
3
Martin Löcker, COO
1 Designated as an additional member of the Managing Board, pending his formal appointment requires an amendment to
the Articles of Association to increase the maximum number of members of the Managing Board.
7 April 2015
COMPANY OVERVIEW
UBM Development combines the strengths of UBM and S+P
Milestones in UBM's history
1873: UBM
listed on
Vienna Stock
Exchange
1990:
Transformation
from real-estate
company to
trade developer
1992-1999:
UBM enters
CZ, PL and
GER
2000: S+P
founded,
asset-light
approach
2001-2010: UBM
enters opportunistic
markets with hotels
(FR, NL)
2014/2015: Spin off and Merger of UBM and Strauss & Partner
UBM
Independent
developer
4
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
7 April 2015
VALUE CREATING STRATEGY
Key strategic pillars of UBM Development
Strategic focus
Portfolio roadmap
• Focus on home
• Exit of large share of
markets: Austria,
Germany and
Poland…
current investment
portfolio (EUR 250m
planned)
• …and on three asset
• Strong project backlog
classes: Residential,
Hotel and Office
secures development
flow for the next few
years
Pure play trade
developer
• Full coverage of the
value chain
• Following the asset
light model
• In-house technical
expertise along the
value chain
5
Operational
efficiency
• Lean company
structure
• Growth in profitability
and dividend capacity
• Performance and risk
management secure
project returns
7 April 2015
CAPITAL MARKET STRATEGY
UBM Development with stronger capital market focus and
attractive dividend development
Capital Market Strategy
Dividend per share
Shareholder Structure
• Strong capital market focus
and commitment to active
investor relations approach
1.25 €
• Capital increase in 2015 to
enable further growth,
strengthen equity ratio and
increase free float
+102%
0.62 €
Free
Float
40.7%
• High management
incentive due to direct
shareholdings in course of
higher free-float
2013
• Listing on Standard
Continuous Market planned
for end of April at the latest,
Goal: Prime Market
6
20141
Syndicate
(Ortner/
Strauss)
48.3%
Management +
Supervisory Board
11.0%
Dividend policy going forward,
aiming for payout ratio2 of 30-50%
1 Subject to decision of Annual General Meeting
2 Based on net income of the period
7 April 2015
Key investment highlights
7
1
Pure-play developer
• “Trade developer” with focused
business model
2
Diversification
• Balancing of market volatility by investing in
several regions and asset classes
3
Synergies and culture change
• Critical mass and strong network
• Entrepreneurial management team
• Capital market commitment
4
Solid financial base
• Strong profit development
• Realization of cash potential by disposal of
non-core real estate assets
7 April 2015
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
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
74 transactions in last 3 years
8
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
32 land bank acquisitions in
last 4 years
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
Concept and design
• In-house experts carry
out all customer-facing
activities
• High level of cost
control
and flexibility
140
experts
Implementation
• Overpriced tenders prevented
by in-house experts
• Tight cost and quality control
during execution
• Flexible on-site
management
through in-house
project managers
7 April 2015
VALUE GENERATION
Typical value-add potential of a fully-integrated real estate
developer
Development process broken down into key steps
Value Creation
Exit with insignificant discount
possible in earlier
stages of development in current
market environment
Green
field
9
Development of
green field
Developed
plot
Development
planning
Pre-Marketing of
property
General
Contracting
Construction
Finalized
project
Marketing
of property/
hotel management
Divested
building
7 April 2015
PURE-PLAY DEVELOPER
Example of a typical development project –
Albert Roßhaupter Straße 43 in Munich
Acquisition of plot as a
commercial property.
Original plan was to
build offices and a
hotel. Negotiations with the city of
Munich followed to convert the plot
partly into residential property
in order to increase value.
Individual sale of flats to private
individuals. The hotel and office
parts were sold to a large
international investor.
10
Development of several concept
studies (school, office, hotel,
boarding house) to get
permit for residential part.
Breakthrough:
Agreement with authorities
to build 26 flats, a hotel with 207
rooms and an office part (3,200m2).
1
2
4
3
Implementation of construction
works. Carcass done by general
contractor. UBM responsible for
fit out works, project
management and
controlling.
7 April 2015
Key investment highlights
1
Pure-play developer
• “Trade developer” with focused
business model
2
Diversification
• Balancing of market volatility by investing in
several regions and asset classes
3
Synergies and culture change
• Critical mass and strong network
• Entrepreneurial management team
• Capital market commitment
4
Solid financial base
• Strong profit development
• Realization of cash potential by disposal of
non-core real estate assets
11
7 April 2015
DIVERSIFICATION
Go-to-market approach defined in terms
of markets and asset classes
Geographies: Targeting European metropolitan regions with high
growth dynamics
"Follow the Customer"
•
•
European metropolitan regions with
growth potential
Focus on hotel
Successful examples:
Amsterdam, Paris
Market attractiveness
•
•
Focus on Growth
Top metropolitan
areas in Germany,
such as Frankfurt,
Berlin, Munich,
Hamburg, Stuttgart,
Cologne, and
Düsseldorf
plus
Vienna, Warsaw,
Krakow
Segments: Increasing focus on Residential and Hotel while
maintaining a diversified portfolio
Sector
Residential
Hotel
Strategy for
relative share Details / Approach
• Focus on mid- and high price
segment
• Close look on attractive niches
markets (e.g., student or
elderly housing)
•
•
Focus on European cities with
top RevPar-development1
Coverage of 3* to 5*
segments, long stay
apartments, and boarding
houses
Strengthen the Core
•
Office
Other large cities in
core markets such as
Graz, Salzburg (AT),
Wroclaw (PL)
•
Other
No coverage
Deepen basis
Market experience
•
•
•
Focus on CBD locations and
business parks with good
public infrastructure (e.g., near
airports)
Reduced share due to high
volatility in the segment
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
12
7 April 2015
DIVERSIFICATION
Positive market outlook indicators across targeted markets
Austria
Germany
Poland
• Broad asset class diversification
• City focus on Vienna, Salzburg, Graz
• Broad asset class diversification
• City focus on Berlin, Munich,
• Asset class focus on hotel
• City focus on Warsaw, Wroclaw, and
•
and Linz
Trend: centralization of population in
metropolitan areas
Population development in Vienna1
(in k people)
•
Hamburg and Frankfurt
Trend: strong demand and increasing
price levels for housing space in
metropolitan areas
+4%
1,838
1,767
’14A ’15E ’16E ’17E ’18E ’19E ’20E
Project example
Quartier Belvedere Central, Vienna
4,000,000
3,500,000
2013
Krakow
Trend: structural change fuels growth
of office and residential real estate
markets
Growth of office occupation in PL3
(in %)
Population growth in GER Top 6
markets2 (in k people)
Thousand
•
2020e
3.7%
+137
+65
+127
+7
1,500,000
1,000,000
500,000
0
2.2%
+28
+14
Berlin Ham- Munich Colo- Frank- Stuttgart
burg
gne
furt/
Main
Project example
Trikot Office, Munich
’13
1.7%
’14
2.2%
’15
’16
Project example
Alma Tower, Krakow
Sources: 1: ÖROK, ²: Börse Frankfurt, Wohnungsmarktbericht Deutschland JLL, UNHABITAT, ³: DekaBank
13
7 April 2015
Book value, in €m
DIVERSIFICATION
Current portfolio1 UBM Development – asset values
Segment Matrix UBM Development – balance sheet view2,3
€13.5m
€119.3m
1.3%
€84.0m
11.0%
€1.6m
€21.9m
€94.7m
5.1%
€53.8m
5.0%
8.3%
€53.6m
11.0%
€22.0m
8.6%
9.2%
€89.8m
€119.1m
0.2%
€99.1m
10.0%
€54.9m
7.8%
Regional
split
€108.1m
Portfolio share in %
Land Bank2,3
€42.2m
4.95%
€19.1m
€42.7m
3.9%
€16.1m
3.9%
€26.6m
Other
2.0%
Residential
2.0%
Office
1.8%
Other
1.5%
2.5%
Hotel
Split by segment
€ 864.4m
14
1 Portfolio consists of completed projects held for sale and current developments
2 All data as of December 31st 2014
3 Including 100% of value of fully consolidated assets and respective value shares of at equity held assets
€ 217.8 m
7 April 2015
DIVERSIFICATION
RESIDENTIAL
Attractive project pipeline in metropolitan cities (1/2)
St. Peter,
Graz
Keibelstraße,
Berlin
Central Living,
Frankfurt
KAHN 1,
Graz
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Land area: 1,740 m²
Number of units: 36
Sales volume:
€ 7,5 mn
Start / Completion:
05/2014 / 07/2015
St. Peter Hauptstraße 2
8042 Graz
Keibelstraße 6
10178 Berlin
15
15
•
•
•
Land area: 3,643 m²
GFS above ground:
7,423 m²
Number of units: 78
Start / Completion:
BA II: 02/2014 / 02/2016
•
•
•
Friedrich-Dessauer Straße
60438 Frankfurt a. M.
16
HOTEL
2015
Land area: 3,944 m²
Sales volume:
€ 58 – 60 mn
Start / Completion:
04/2014 / 09/2015
Holiday Inn,
Berlin
• Category: Holiday Inn
Express
• Rooms: 184
• Operator: IHG
• Start / Completion:
• 04/2015 / 11/2016
Klosterstaße 48
Berlin
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
17
Gateway Gardens,
Holiday Inn,
Frankfurt
Munich
• Category: Holiday Inn • Category: 3-4*
Express
• Rooms: 288
• Rooms: 302
• Start / Completion:
• Operator: IHG
• 04/2015 / 12/2016
• Start / Completion:
• 04/2014 / 11/2016
Birketweg
80639 Munich
Bessie-Coleman-Str. 16
60549 Frankfurt a. M.
2018
Hyatt Regency,
Amsterdam
• Category: 5*
• Rooms: 211
• Operator:
• Hyatt Regency
• Start / Completion:
• 2015 / 2016-2017
Sarphatistraat 102-104
1018 GV Amsterdam
DIVERSIFICATION
OFFICE
Attractive project pipeline in metropolitan cities (2/2)
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
Valeska-Gert Straße
10243 Berlin
Elsenheimerstraße 1
80687 Munich
MIXED
2015
16
15
16
Poleczki Business Park,
Warsaw
Am Ring 20,
Munich
•
•
•
•
•
•
•
•
•
•
•
•
•
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
Poleczki 35
02-822 Warsaw
Land area: 9,190 m²
GFS above ground:
12,453 m²
Start / Completion:
04/2015 / 04/2017
Leuchtenbergring
20
7 April 2015
81677 Munich
2018
17
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
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
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
Boarding-House:
Quartier Belvedere Central,
Main Railway Station, Vienna,
Austria
Key investment highlights
1
Pure-play developer
• “Trade developer” with focused
business model
2
Diversification
• Balancing of market volatility by investing in
several regions and asset classes
3
Synergies and culture change
• Critical mass and strong network
• Entrepreneurial management team
• Capital market commitment
4
Solid financial base
• Strong profit development
• Realization of cash potential by disposal of
non-core real estate assets
17
7 April 2015
SYNERGIES AND CULTURE CHANGE
UBM Development - value added through productivity synergies
and enhanced growth
GROWTH
1
Full value chain expertise in all markets
• UBM Realitätenentwicklung’s technical expertise plus S+P’s
experience with asset-light approach
• Most client-facing activities carried out in-house: consistent
cost control, greater flexibility, deeper customer
relationship
Leveraging asset class synergies
• Combining S+P's and UBM Realitätenentwicklung’s experience
and know-how in the hotel, office and residential segments
leading to better penetration of all asset classes in all
markets
•
COST / PRODUCTIVITY
EXAMPLES
• Location consolidation
• Previously outsourced
activities by S+P are now
carried out by in-house
experts which leads to
higher cost control
• Avoidance of operational redundancies and best practice
2
18
EXAMPLES
• Application of the asset-light
approach to the office and
hotel segment
• Full end-to-end service for the
customer in cities where S+P
could not use the UBM
network in the past
•
•
sharing
Process integration: bundling know-how, Shared Services, etc.
Improve borrowing conditions due to increased size
•
Projects in markets where so
far mainly S+P has been
active; e.g. in Berlin
Better penetration of the
residential market in Austria
7 April 2015
Key investment highlights
1
Pure-play developer
• “Trade developer” with focused
business model
2
Diversification
• Balancing of market volatility by investing in
several regions and asset classes
3
Synergies and culture change
• Critical mass and strong network
• Entrepreneurial management team
• Capital market commitment
4
Solid financial base
• Strong profit development
• Realization of cash potential by disposal of
non-core real estate assets
19
7 April 2015
SOLID FINANCIAL BASE
Strong financial growth trajectory expected to continue…
UBM Development 20142
UBM Realitätenentwicklung stand alone
Production output
Growth, in %
xx
483
-8
Production
output
(in EURm)
and growth
(yoy)
281.9
11
258.3
286.7
Merger
EBITDA
57
2011
121
2013
EBIT
54
13.7
Net profit
(in EURm)
13.5
8.9
Net profit
28
2011
20
121
2013
1 Restated; acc IAS 8; 2 Preliminary 2014 pro-forma numbers
2014
2015
7 April 2015
SOLID FINANCIAL BASE
…. and is backed up by a solid financing structure
UBM Realitätenentwicklung stand alone
xx Equity ratio, in %
Equity in EURm
Mid-and mid-term targets
UBM Development 2014
2014 preliminary
Total assets: EUR 1.077mn
24.4
145
24.2
154
26.0
164
Equity: EUR 265mn
Net debt1: EUR 571mn
Targets (mid-term)
Equity ratio: 30 – 40%
Equity/
Equity
Ratio
Payout ratio: 30 – 50%
LTV: 40 – 50%
Net debt1:
571
-250
2011
21
2012
2013
20142
Mid-term
1 Net Debt: debt resulting from bonds, financial liabilities, liabilities to affiliated companies, financing of working capital reduced
by liquid funds and excess cash
2 2014 preliminary pro-forma numbers
7 April 2015
UBM DEVELOPMENT ASSET LIGHT PORTFOLIO APPROACH
Portfolio reduction in 2015/16 will boost earnings and increase
cash-flow
INDICATIVE PLANNING FIGURES
Planned Divestments UBM Development1,
in percentage of total divestments
Divestment targets
Regional Split
250
72
4.2%
10.3%
15.2%
12.7%
5.9%
12.1%
2.5%
8.4%
Already
realized
EUR 250m
total net
cash-in target
Other
10.8%
Residential
22
1 Excl. M6 highway
2 Includes projects under development
Hotel
10.1%
1.5%
6.4%
Office
Split by segment
Other
7 April 2015
DIVERSIFICATION
A pure-play trade developer with an asset-light
focus - unique among publicly traded companies
Differentiation of UBM from its peer group
Asset Manager
Europe
Immofinanz
SIMPLIFIED ILLUSTRATION
Asset Management and Development
Real Estate Developer
CA IMMO
IMMOBEL
National
GTC
Pure Play
Asset Managers in
Germany and Austria
Kaufman
Broad
VIB
Vermögen
++
HIAG
Asset intensity
nexity
Berkeley
ISARIA
DOM
--
UBM Development offers a unique combination of core competence, asset classes, and focus markets
Diversification
Balancing of market volatility by
investing in several regions and asset
classes
23
Technical expertise
Benchmark in architecture, planning
and realization
Network
Experienced management with strong
network for developments, financing
and transactions
7 April 2015
VALUE GENERATION
Ongoing project
developments
PROJECT DEVELOPMENTS
(including pipeline)
Standing asset
base
UBM’s value comprises value of standing assets, ongoing
developments and potential project pipeline (1/2)
STANDING ASSET BASE
24
TOTAL VALUE
7 April 2015
VALUE GENERATION
Standing asset base1
Ongoing project developments
UBM’s value comprises value of standing assets, ongoing
developments and potential project pipeline (2/2)
Future scope of
ongoing
developments
(orderbook)
Total project volume
EUR 1.1bn
Finalized share of
ongoing
developments
GAV: EUR 400mn
Current total
development
pipeline of
EUR 1.5bn
incl. assumed
minimum margin
requirement
Hotels
•
•
Not yet on UBM’s balance sheet
Profit margin will be realized once the project is sold
– Target gross margin of total volume depends on asset class and
reflects costs including overhead of UBM Group
– Represents ca. 24 months of outstanding project duration
•
Accounting treatment depends on asset class
– All directly allocable costs charged to the project
– No partial profit realization
– Represents on average ca. 12 months of project duration
•
Accounted for at costs, regular depreciation
•
Accounted for at costs plus reasonable exit margin significantly below
target gross margin, but conservative markup to market value
•
Accounted for at costs plus reasonable exit margin significantly below
target gross margin, but conservative markup to market value
GAV2: EUR 682mn
LTV3: 58.6%
Office
Average rental
yield: 7%
Other
1 Currently marginal residential assets on UBM’s balance sheet
2 Including 100% of value of fully consolidated assets and respective value shares of at equity held assets but not including off-balance lease structures
3 Only includes debt of project entities, excluding mezzanine and bond instruments on UBM Group level
25
7 April 2015
GROWTH POTENTIAL
UBM is continuously screening projects worth of up to EUR 5bn p.a. to
fuel growth backed by a strong project pipeline of currently ca. EUR 1.5bn
UBM‘s project volume is spread across asset classes and regions
Estimated total project volume for the next 3 years
13.6%
24.4%
5.4%
16.8%
7.6%
13.5%
6.5%
1.9%
Regional
split
Other
4.2%
Residential
4.6%
Office
Hotel
1.5%
Other
€ ~1.5bn
26
7 April 2015
INVESTOR RELATIONS
IR Information for UBM Development
Share Information
Merger PIAG/UBM
Share price1
Market capitalisation
Official market
Number of shares
outstanding
Ticker symbol
ISIN
27
Shareholder structure
19 Feb 2015
41,00 EUR
246 m EUR
Vienna Stock Exchange
Std. Auction Market
No indices
6,010,000
UBS VI
AT0000815402
Free
Float
40.7%
Syndicate
(Ortner/
Strauss)
48.3%
Management +
Supervisory Board
11.0%
IR Calendar 2015
IR Contact
14.04.2015
14.04.2015
12.05.2015
20.05.2015
22.05.2015
26.05.2015
27.08.2015
11.11.2015
Do you have any questions?
Annual report 2014
Press conference
Q1 2015
134th Annual General Meeting
Trade Ex-dividend 2014
Payment dividend 2014
Half-year report 2015
Q3 2015
1 as of Mar 31st, 2015
For further information please contact the
department Investor Relations.
Julia Kozielski
T +43 (0)50 626-3827
[email protected]
7 April 2015
Contents
• Projects Overview
• Financials & Other
29
7 April 2015
DIVERSIFICATION
Reference projects (1/3)
Office
Neue Mitte Lehen, Salzburg, Austria
Project B picture
•
•
•
•
•
•
Size: 16,626 m² gross land area
Construction completed: 2008
Main tenants: DM, Libro, Ernstings Family, Flöckner, Stadtbücherei, Egos, Bodner, …
Avg. rent per sqm per month: € 17.40
Owner: UBM Development
Address: Schumacherstraße 14, 5020 Salzburg
Office Campus / O2 World, Berlin, Germany
Project B picture
• Size: 26,000 m² gross land area
• Construction completed: June 2014
• Main tenants: Zalando, Anschutz Entertainment, EHC Eisbären Management
• Avg. rent per sqm per month: € 15.54
• Sold in December 2014
• Address: Mühlenstraße 11-12, 10243 Berlin
ALMA Tower, Cracow, Poland
Project C picture
30
•
•
•
•
•
•
Size: 13,171 m² gross land area
Construction completed: April 2014
Main tenants: Alma, Vistula, Krakchemia, Onet
Avg. rent per sqm per month: € 14.0
Owner: UBM Development
Address: Pilotów 10 3, 1-462 Krakow
7 April 2015
DIVERSIFICATION
Reference projects (2/3)
Hotel
KEMPINSKI, Palais Hansen, Vienna, Austria
Project A picture
•
•
•
•
•
•
Number of rooms: 152, category 5*
Occupancy rate 2014: 63.4%
Construction completed: February 2013
Managed by Kempinski Hotel Vienna Management GmbH
Owner: UBM Development and project partners
Address: Schottenring 24, 1010 Vienna
ANGELO Westpark, Munich, Germany
Project B picture
•
•
•
•
•
Number of rooms: 207, category 3*plus
Occupancy rate 2014: 73%
Construction completed: February 2013; Sold in September 2013
Managed by Vienna International Hotelmanagement AG
Address: Albert-Roßhaupter-Straße 45, 81369 Munich
Intercontinental, Warsaw, Poland
Project C picture
31
•
•
•
•
•
Number of rooms: 401, category 5*plus
Occupancy rate 2014: 79.55%
Construction completed: 2003
Managed by Intercontinental Hotels Group
Address: Emilii Plater 49, 00-125 Warszawa
7 April 2015
DIVERSIFICATION
Reference projects (3/3)
Residential
Sternbrauerei, Salzburg, Austria
Project A picture
• 100 units and 146 parking spaces
• Sales volume: € 62.9 mn
• Construction completed: June 2014
• Address: Rainbergstraße 1 & Steinbruchstraße 1, 5020 Salzburg
Inselstraße, Berlin, Germany
Project B picture
•
•
•
•
88 units
Sales volume: € 34.75 mn
Construction completed: November 2013
Address: Inselstraße 9-10, 14129 Berlin
Villa Galicija, Krakow, Poland
Project C picture
32
•
•
•
•
72 units
Sales volume: € 8.2mn
Construction completed: 2011
Address:Ul. Dominikanow 32, 31-409 Krakau
7 April 2015
Contents
• Projects Overview
• Financials & Other
33
7 April 2015
DIVERSIFICATION
Current portfolio1 UBM Development – operational KPIs
Segment Matrix UBM Development – full view2
Area3 in thd. sqm, hotel segment in number of rooms in operation
20.5
67.2
38.9
36.8
0.9
108.6
11.2
9.3
46.1
Area in thd. sqm/
hotel rooms
Land Bank2,3
719 rooms
782.4
703 rooms
119.2
37.1
517 rooms
492.9
48.0
144 rooms
1,398.7
Regional
split
Other
Office
Other
Residential
Split by segment
434.2 thd. sqm
1 Portfolio consists of completed projects held for sale and current developments
Hotel
2,083 rooms
2,793 thd. sqm
34 2 Assuming a 100% share for rooms and area - both for fully consolidated and at equity held assets; 3 For land bank: full view, size of plot
7 April 2015
Book value, in €m
DIVERSIFICATION
Current portfolio1 UBM Development AG –
fully consolidated properties
Portfolio share in %
Segment Matrix UBM Development2
€12.2m
€115.6m
€11.9m
6.8%
€41.2m
12.0%
Regional
split
€47.6m
16.5%
1.74%
€84.0m
Land Bank
€1.6m
€50.9m
€35.1m
€21.9m
1.7%
5.9%
0.2%
€78.9m
€35.9m
7.3%
€53.6m
€20.7m
7.6%
5.0%
€11.0m
11.3%
5.1%
€42.6m
3.0%
€10.0m
6.1%
€26.6m
Other
3.1%
Residential
1.6%
Office
1.4%
Other
3.8%
Hotel
Split by segment
€ 517.2m
35
1 Portfolio consists of completed projects held for sale and current developments
2 All data as of December 31st 2014 – only fully consolidated projects
€ 183.9m
7 April 2015
Book value, in €m
DIVERSIFICATION
Current portfolio1 UBM Development –
at-equity held properties
Portfolio share in %
Segment Matrix UBM Development2
€1.3m
€3.7m
Land Bank
€60.5m
1.0%
0.3%
€87.2m
15.9%
€13.7m
22.9%
€38.9m
3.6%
Regional
split
€15.8m
€17.9m
10.2%
€84.0m
€21.5m
22.0%
€11.0m
4.2%
€0.1m
5.6%
€9.2m
4.7%
0.0%
€16.1m
Other
2.9%
Residential
Office
2.4%
Other
4.2%
Hotel
Split by segment
€ 347.2m
36
1 Portfolio consists of completed projects held for sale and current developments
2 All data as of December 31st 2014 – only at equity held projects
€ 33.9m
7 April 2015
DIVERSIFICATION
UBM's hotel development models 1/2: Straight sale
UBM Development develops
hotel assets
Cash streams
Purchase
price for the
hotel
Hotel operator
Investor
Monthly lease payments
•
•
•
37
UBM Development sells hotel to investor when development is finalized
UBM Development is no longer involved in daily operations
Operator leases hotel from investor and operates it
7 April 2015
DIVERSIFICATION
UBM's hotel development models 2/2: Sell,
lease & operate
Revenues from hotel operation
Purchase price for the hotel
Hotel operator
Investor
Management fee
38
Cash streams
Monthly lease payments
(20 years contract)
•
•
UBM Development sells hotel to investor when development is finalized
•
UBM Development receives all proceeds from hotel operation and pays management
fee to operator
•
UBM Development guarantees lease payments for 2 years and builds provisions for it
Investor is not permitted to run hotel; UBM Development steps in to create rental
income (lease payment)
7 April 2015
SYNERGIES AND CULTURE CHANGE
Strong and well-established local brands under the umbrella of
UBM Development form a strong network
UBM
Development
Insights
Headquarters in Vienna allow
local proximity and optimal
cooperation
Local companies
in home markets and interesting
locations enable access to local
know-how, opportunities, skilled
employees, and partners
Strong local brands enable
tailored market presence
39
7 April 2015
BACK UP - FINANCIALS
Consolidated income statement (UBM stand alone until 2013
and 2014 pro-forma including PIAG)
€m
Sales revenues
31.12.2014
(pro-forma)
31.12.2013
(UBM stand alone)
31.12.2012
(UBM stand alone)
31.12.2011
(UBM stand alone)
315,3
217.3
134.0
196.3
Own work capitalized in noncurrent assets
27,4
0.3
0.0
0.0
Other operating income
12,9
2.3
7.8
7.6
Result from associated
companies
24,8
12.7
4.5
(1.0)
(244,6)
(145.5)
(83.8)
(133.9)
Personnel expenses
(34,2)
(20.4)
(17.9)
(16.0)
Other operating expenses
(45,0)
(34.8)
(30.1)
(29.2)
EBITDA
56,8
31.9
14.5
24.8
Depreciation & amortization
(3,3)
(2.5)
(2.4)
(1.7)
EBIT
53,5
29.4
12.1
23.1
(22,1)
(11.6)
0.8
(8.6)
EBT
31,4
17.8
12.9
14.5
Taxes on income
(3,2)
(4.3)
0.8
(5.6)
Net income
28,2
13.5
13.7
8.9
Material expenses and other
services
Financial results
40
7 April 2015
BACK UP - FINANCIALS
Consolidated balance sheet (UBM stand alone until 2013 and
2014 pro-forma including PIAG)
€m
31.12.2014
(pro-forma)
Total assets
31.12.2013
31.12.2012
(UBM stand alone) (UBM stand alone)
31.12.2011
(UBM stand alone)
1,077.4
630.8
633.0
592.6
Non-current assets
726.6
427.7
437.8
389.2
Current assets
350.8
203.1
195.2
202.4
Shareholders‘ equity
265.3
163.7
153.7
144.8
24.6%
26.0%
24.2%
24.4%
Current liabilities
250.8
118.6
92.8
131.8
Non-current liabilities
561.3
348.5
386.5
315.0
Net debt
571
321.9
333.3
288.1
Earnings per share (€)
4.35
2.14
2.15
1.65
Dividends per share (€)
1.251
0.62
0.55
0.55
28.7%
29.0%
27.0%
33.3%
Equity ratio
Payout ratio
41
1 Subject to decision of Annual General Meeting
7 April 2015
COMPANY OVERVIEW
EBT and equity development of UBM
EBT development (€m)
16.6
17.8
16.8
14.2
14.4
14.6
12.9
11.4
9.3
8.3
4.1
3.1
1991
1992
EBT
1993
9.9
7.2
6.8
3.3
11.2
1994
4.9
3.9
3.1
1995
1996
3.5
1997
4.4
3.4
1998
1999
2000
2001
2002
2003
2.6
2.7
3.0
3.3
3.3
3.0
3.3
3.3
2004
2005
2006
2007
2008
2009
2010
2011
3.3
3.7
20121) 2013
Profit and loss transfer agreement
Thereof dividend paid
Equity development (€m)
122.8
102.0
54.7
58.3
59.1
59.8
59.4
58.5
60.0
52.4
58.4
64.4
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
72.4
72.0
2001
2002
77.6
2003
86.6
90.1
2004
2005
2006
132.5
139.5 144.8
153.7
163.7
108.5
2007
2008
2009
2010
2011
2012
2013
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
42
7 April 2015

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