Q1 2016 Results - Kardan - K… · GTC RE 65% TGI 14% KFS 21%*** Financial Highlights Kardan In €...
Transcript of Q1 2016 Results - Kardan - K… · GTC RE 65% TGI 14% KFS 21%*** Financial Highlights Kardan In €...
Q1 2016 Results
26 May 2016
Emerging markets player
Core activities*
Corporate Governance
Kardan
Mainly Asia, Africa & CEE
Real Estate – Kardan Land China
Water Infrastructure ‐ Tahal
Listed: Amsterdam & Tel‐Aviv
* The sale of TBIF was announced on March 15, 2016. As a result TBIF is now being reported as discontinued operations under ‘Other’
Kardan Group
Kardan N.V.
Real EstateKardan Land China
Water InfrastructureTahal
Financial ServicesTBIF **
*Net investment on the basis of Equity investment and shareholders loans as of 31.03.2016** The sale of TBIF was announced on March 15, 2016. As a result TBIF is now being reported as discontinued operations under ‘Other’*** Including assets not to be sold reflecting net investment of 5%
100% 98% 100%
100%
GTC RE65%
TGI14%
KFS21%***
Financial Highlights Kardan
In € millions Real Estate Asia
Water Infrastructure
Other TotalQ1‐2016 Q1‐2015
Year 2015
Profit (loss) from continuing operations (2.0) 0.9 0.3 (0.8) (31.0) (59.2)
Profit (loss) from discontinued operations ‐ (1.5) 3.9 2.4 23.6 36.3
Profit (loss) for the period (2.0) (0.6) 4.2 1.6 (7.4) (22.9)
Attributable to: Non‐controlling interest ‐ (0.3) ‐ (0.3) 0.2 ‐
Net result to equity holders (2.0) (0.3) 4.2 1.9 (7.6) (22.9)
Other Comprehensive income (expense) to KNV (9.9) 15.5 (2.0)
Total ComprehensiveIncome (Loss) to KNV (8.0) 7.9 (24.9)
Financial Highlights Kardan Q1 2016
• € 1.9 mn net profit to equity holders (Q1/15: € 7.6 mn loss)
• Total Comprehensive loss € 8.0 mn (Q1/15: € 7.9 mn income)Shareholders’ equity: € 63.3 mn (year end‐ 2015: € 71.5 mn)
• Positive foreign exchange impact (€3.3 mn) on financing expenses (appreciation Euro vs NIS) (Q1/15: € 29.7 mn negative impact); Negative foreign exchange impact (€9.7 mn) on equity (depreciation Euro vs RMB) (Q1/15: € 17.6 mn positive impact)
• Real Estate Asia• Improved operational performance
• Increasing occupancy in Galleria Dalian• Limited deliveries of apartments, but strong sales trend
• Offset by impact devaluation of RMB vs EUR on financing expenses Resulting in net loss of € 2.0 mn (Q1 2015: profit of € 8.9 mn)
Financial Highlights Kardan Q1 2016 (continued)
• Water Infrastructure• Stable result from operations
• Despite decrease in revenues due to nearing completion of large project• Low oil prices impact investment appetite customers• Optimised cost structure
• Increased profit from continuing operations• Discontinued operations (25% KWIG) impacted by currencies and tax Resulting in net loss of € 0.3 mn (Q1 2015: € 17.8 mn profit incl € 20 mn gain)
• Other• TBIF contributed strong results• Significant lower financing expense due to weakening NIS vs EUR Resulting in net profit of € 4.2 mn (Q1 2015: loss of € 34.3 mn)
• Announcement of sale of TBIF;
• Changes in the Board of Directors; Ariel Hasson succeeded Shouky Oren as CEO;
• Agreement with contractor for pumped storage project in Israel.
Main events 2016 YTD
Real Estate Asia
Kardan Land China www.kardanland.com
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EBIT: ‐ € 0.7 mn profit (Q1 2015: € 0.7 mn loss) ‐Mainly driven by increase in the results attributed to the joint ventures‐ Rental revenue Galleria Dalian starts to kick in
Total revenues ‐ Total revenues increased from €1.4 mn in Q1 2015 to €1.9 mn in Q1 2016
Rental revenues ‐ Increasing opening rate to 57% (31.12.2015 – 43%)‐ Signing rate – 70%
Equity Earnings ‐ Results increased due to currency effects related to intercompany loans‐ Gross margin stable at 30%
Real Estate Asia – Q1 2016 highlights
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Real Estate Asia – Q1 2016 highlights
1748 1767 22722847
1730 2012
3461
18831194
21181254 1389
2010 2011 2012 2013 2014 2015
Residential Apartments
Delivered Sold
Q1/16 Q1/15 FY 2015Apartments JV sold in period 387 171 1,120
Apartments JV delivered in period 385 742 2,008
Apartments Dalian sold in period - - 269
Apartments Dalian delivered in period 1 2 4
Total apartments sold, not yet delivered 2,207 2,267 2,208
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Real Estate Asia – Q1 2016 highlights
• Galleria Dalian: ‐ 3% decrease in valuation due to depreciation of the RMB versus the Euro
• Currency: ‐ Impact of devaluation RMB versus Euro
• Net loss to Kardan: ‐ € 2.0 mn (Q1 2015: € 8.9 mn net profit)‐ Excluding forex impact: net loss € 0.4 mn in Q1 2016 vs a loss of € 0.2 mn in Q1 2015
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Europark: opening Galleria Dalian (August 2015)
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Galleria Dalian
• Location: ‐ Dalian: city with approx. 7 million residents and one of China’s fastest growing cities‐ next to Davos Center and near renewed port: many visitors‐ green surroundings‐ connected to new subway station & offering sufficient parking space
• 65,000 square meter net rentable area
• Tenants include large international retailers
• Approximately 70% signed tenancy agreements at present
• Focuses on comprehensive lifestyle concept, combining the shopping experience with entertainment (IMAX cinema, fitness centers, Kid’s floor, Restaurants etc.)
• Designed by international architects: La Guardia‐LuoWon several real estate awards during construction
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Europark: signing sale of Building B (August 2015)
Europark Building B:‐ Sale agreement Building B to Fraser Suite Dalian
‐ Consideration: RMB 481 mn (approx. € 68 mn) of which 50% was paid
‐ Core & Shell completed; interior according to specific design under construction
‐ 262 service apartments + 14 parking spaces
‐ Estimated delivery: Q4 2017
Water Infrastructure
Tahal Group International www.tahal.com
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Water Infrastructure – Q1 2016 highlights
• Revenue decreased by 22% y‐o‐y in Q1 2016 mainly due to being close to finalizing a large project‐ Delays (in progress of) projects‐ Low oil prices impact investment appetite clients
• The gross margin remained stable at 16% in Q1 2016 (Q1 2015 ‐15%)
• EBIT stable at: € 1.0 mn in Q1 2016 (Q1 2015: € 1.0 mn)
• Improved cost structure as result of management actions
• Financing income of € 0.7 mn (Q1 2015: expense of € 2.4 mn due to one‐off charge on an early repayment of loan during Q1 2015 of € 3 mn)
• Sale of KWIG (25%) is expected to be completed in the coming months
• Net loss to Kardan: € 0.3 mn (Q1 2015: € 17.8 mn, incl. € 20 mn gain of sale of KWIG)
• Backlog as at 31 March 2016: $ 296 mn; in April 2016 Tahal won 2 projects in Russia and Romania of $ 35 mn which will be added to the backlog
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Water infrastructure activities worldwide
Other
Other
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“Other” Q1 2016 Highlights
• TBIF reported as discontinued operations and now presented under `Other‐ Results TBIF increased from € 3.6 mn in Q1 2015 to € 3.9 mn in Q1 2016 as a
result of increased lending volumes and good risk management parameters.
• Financing income of € 7.0 mn due to the decrease in CPI and the weakening of the NIS against the EUR (Q1 2015: expense of € 29.7 mn)
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(EUR million) 2016 2017 2018 2019 2020 Total
Debentures –Series A* ‐ 41.3 44.6 ‐ ‐ 85.9
Debentures ‐ Series B* ‐ 42.7 46.1 92.2 92.2 273.2
Total ‐ 84.0 90.7 92.2 92.2 359.1
Maturity of liabilities
Company Only – Kardan N.V. (principal only, March 31, 2016)
(*) Net of debentures held by subsidiaries
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Kardan debt development *
(*)Company Only – Kardan N.V. as at March 31, 2016; principals only are presented as per January 1 of each year and exclude accrued interest and hedges and presented net of debentures held by subsidiaries. The gross debt presented up to March 31, 2016, is presented according to actual forex rates (NIS to Euro); looking forward the NIS / Euro exchange rate of March 31, 2016 has been applied.
555
432397
344370 359
275
184
92
02011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Gross debt of Kardan NV
Debentures
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Cash flow forecast Kardan
Company only ‐ Kardan N.V. April 1, 2016 – March 31, 2018
Sources € millions
Cash & ST investments as at 01.04.2016 7.1Sale of assets 226.7Total sources 233.8
UsesSeries A debentures (principal) 85.9Series B debentures (principal) 88.8Interest expenses 42.3G&A expenses less management fees 8.2Total uses 225.2
Expected cash & short term investments at 31.03.2018: 8.6
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Outlook 2016
Kardan N.V.:
• Improving results from segments
• Continued focus on generating cash to service the debt
It is noted that Kardan has a significant exposure to currency movements:
‐ Kardan reports in Euro
‐ Liabilities are in NIS
‐ Assets are predominantly in RMB
Disclaimer
This presentation has been prepared on behalf of Kardan N.V. solely for information purposes. It is not an investment advice or an offer or solicitation for the purchase or sale of any financial instrument. While reasonable care has been taken to ensure that the information contained herein is not untrue or misleading at the date of the presentation, Kardan N.V. makes no representation that it is accurate or complete. The information contained herein is subject to change without notice. Neither Kardan N.V. nor any of its officers or employees accepts any liability for any direct or consequential loss arising from any use of this presentation or its contents. Copyright and database rights protection exist in this presentation and it may not be reproduced, distributed or published by any person for any purpose without the prior express consent of Kardan N.V. All rights are reserved.
Thank you
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Investor Relations Contact details
Floor van Maaren/ Eva Lindner
Office: +31 20 305 0010
Kardan N.V.
Claude Debussylaan 30Viñoly Building, 13th floor1082 MD AmsterdamThe Netherlands
www.kardan.nl
Ohad Lev
Office: + 972 3 608 3444
Mobile: + 972 54 333 0830
Kardan N.V.
154 Menachem Begin Rd.Tel Aviv 64921Israel
The Netherlands Israel
Appendix
Kardan Q1 2016 financials
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In € million Q1
2016 2015Delivery of units 0.1 0.5
Rental income 0.9 ‐
Management fee and other revenues 0.9 0.9Total revenues 1.9 1.4
Cost of delivery of units 0.1 0.5
Cost of rental income 0.4 ‐Other expenses, mgt & service recharge expenses, net 1.3 0.3
Gross profit 0.1 0.6SG&A expenses 2.3 2.6
Adjustment to fair value of investment properties ‐ 0.6
Gain on disposal of assets, other income & equity earnings 2.9 0.7
Result from operations before finance expenses 0.7 (0.7)
Financing income (expenses), net (4.6) 9.6
Income tax (expenses) / benefit 1.9 ‐
Net profit (loss) to Kardan N.V. (2.0) 8.9
Real Estate Asia – Q1 2016
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In € million Q1
2016 2015
Contract revenues 29.6 37.8
Contract cost 24.9 32.2
Gross profit 4.7 5.6
SG&A expenses 3.6 4.3
Gain (loss) on disposal of assets, other income and equity earnings (loss)
(0.1) (0.3)
Result from operations before financing expenses
1.0 1.0
Financing income (expenses) net 0.7 (2.4)
Income tax (expenses) / benefit (0.8) (0.6)
Profit (loss) from continuing operations 0.9 (2.0)
Net profit(Loss) from discontinuedoperations (1.5) 20.0
Net Profit (loss) (0.6) 18.0Non‐controlling interest holders (0.3) (0.2)Net profit (Loss) to equity holders (0.3) 17.8
Water Infrastructure Q1 2016
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In € million Q1
2016 2015Corporate expenses
General & administrative expenses (0.9) (1.4)
Financing income (expenses), net 1.5 (35.9)
Equity earnings (losses) ‐ (0.1)
Income tax (expenses) / benefit (0.3) (0.1)
0.3 (37.5)Result of unsold assets in the former ‘banking and retail lending’ segment
Other expenses (0.3) (0.7)
Other income ‐ 0.3
Financing income (expenses), net (0.2) (0.2)
Equity earnings (losses) 0.5 0.2
‐ (0.4)Profit (loss) from continuing operations 0.3 (37.9)Profit (loss) from discontinued operations 3.9 3.6Net Profit (Loss) attributable to equity holders 4.2 (34.2)
Other Q1 2016