Mastertitelformat bearbeiten Annual report 2014 April 2015!
Company Highlights Warimpex Finanz- und Beteiligungs AG, Vienna is one of the largest investors in commercial property development, operation and sale in the CEE region with 18 Hotels (4,600 rooms) and 5 office buildings (43.100 sqm) in 8 countries Superior locations and upper-end quality of hotels provide good customer value Intercontinetal****, Warsaw Andel s****, Lodz Kempinski*****, Vienna Crowne Plaza****, St.Petersburg Growth and value creation through active management of undervalued assets in emerging markets EUR 78 mn. (i.e. EUR 1.4/share) hidden reserves as of 31.12.14 Listed in Vienna and Warsaw and traded at discount to NNNAV Proven strong track record of professional, high-experienced management team and high transparency 2
Portfolio Overview 3 Hotels Development AIRPORTCITY St. Petersburg Offices incl. land reserve 1 Hotel Development: conference centre commercial project 4 Hotels 6 Hotels 1 Office Building Development: 2 offices 1 land reserve 2 Hotels 1 Hotel 3 Office Buildings 1 Hotel land reserve 3
Operational Update 02/2015 AIRPORTCITY St. Petersburg: Sale of Jupiter tower closed 12/2014 PLN 14 mn. (ca. EUR 3.3 mn.) corporate bonds placed 11/2014 AIRPORTCITY St. Petersburg: Signing for the sale of Jupiter tower 6/2014 EUR 5 mn. convertible bonds placed 6/2014 Warimpex sells Hotel Savoy in Prague 5/2014 Florian Petrowsky new member of the board 3/2014 New tenant for Erzsébet Office in Budapest for 12,250 m² 2/2014 PLN 9 mn. (ca. EUR 2.15 mn.) corporate bonds placed 2/2014 AIRPORTCITY St. Petersburg: Term sheet signed for Jupiter Tower 12/2013 Warimpex sells five-star Le Palais Hotel in Prague 4 4
Company Overview stake adjusted 2014 Strong regional diversification with focus on profitability EBITDA by Segment Hotel NOP by Geography Current Rooms by Chain Scale Development and services; -12% FR 10% 5 stars; 7.1% 3 stars; 7.0% Office Buildings (IP); 12% DE; 10% CZ; 23% Hotels; 88% RU; 17% 4 stars; 85.9% RO; 2% PL; 38% EUR 25.4mn. EBITDA EUR 31.0 mn. Net Operating Profit 3,169 Rooms Source: Company Annual Report Segment Reporting Dec.2013 5
Hotel Portfolio at a Glance Hotels (as of 31.12.2014) City 100% Country Rooms Stake Occupancy Rate RevPAR 2014 2013 2014 68 % 67 % EUR 53 Angelo**** Prague CZ 168 100 % Diplomat**** Prague CZ 398 100 % Dvořák**** Karlovy Vary CZ 126 100 % Angelo**** Plzeň CZ 144 50 % Angelo**** Katowice PL 203 50 % InterContinental**** Warsaw PL 404 50 % operational lease Chopin*** Krakow PL 220 100 % Amber Baltic**** Międzyzdroje PL 191 100 % Andel s**** Krakow PL 159 100 % operational lease Andel s**** Łódź PL 278 100 % Angelo Airporthotel**** Bucharest RO 177 100 % Angelo Airporthotel**** Ekaterinburg RU 211 60 % Liner*** Ekaterinburg RU 151 60 % Crowne Plaza**** St. Petersburg Airport RU 294 55 % Andel s**** Berlin DE 557 50 % Dream Castle**** Paris FR 397 50 % Magic Circus**** Paris FR 396 50 % Andel s****, Lodz Palais Hansen Kempinski***** Vienna AT 152 9,88 %** 4,636 rooms in total (stake adjusted 3,169 rooms) Note: ** recognized as financial instrument 6
Hotel market 1-12 / 2014 Occupancy, Room Rate, Room RevPAR and Total Gross Operating Profit Occupancy is the proportion of the bedrooms available during the period which are occupied during the period Room Rate in EUR is the total bedroom revenue for the period divided by the total bedrooms occupied during the period 90% Occ. 1-12/2013 Occ. 1-12/2014 140 ARR 1-12/2013 ARR 1-12/2014 80% 120 70% 100 60% 80 50% EUR 60 40% 40 30% 20 20% Berlin Bucharest Prague St. Petersburg Warsaw Room RevPAR is the total bedroom revenue for the period divided by the total available rooms during the period 0 Berlin Bucharest Prague St. Petersburg Warsaw GOP PAR is the Total Gross Operating Profit for the period divided by the total available rooms during the period 100 RevPAR 1-12/2013 RevPAR 1-12/2014 60 GOP PAR 1-12/2013 GOP PAR 1-12/2014 90 80 50 70 40 60 EUR 50 EUR 30 40 30 20 20 10 10 0 Berlin Bucharest Prague St. Petersburg Warsaw 0 Berlin Bucharest Prague St. Petersburg Warsaw Source: www.trihospitality.com 7
Hotel market 1-3 / 2015 Occupancy, Room Rate, Room RevPAR and Total Gross Operating Profit Occupancy is the proportion of the bedrooms available during the period which are occupied during the period Room Rate in EUR is the total bedroom revenue for the period divided by the total bedrooms occupied during the period 80% Occ. 1-3/2014 Occ. 1-3/2015 140 ARR 1-3/2014 ARR 1-3/2015 70% 120 100 60% 80 50% EUR 60 40% 40 30% 20 20% Berlin Bucharest Prague St. Petersburg Warsaw 0 Berlin Bucharest Prague St. Petersburg Warsaw Room RevPAR is the total bedroom revenue for the period divided by the total available rooms during the period GOP PAR is the Total Gross Operating Profit for the period divided by the total available rooms during the period 100 RevPAR 1-3/2014 RevPAR 1-3/2015 60 GOP PAR 1-3/2014 GOP PAR 1-12/2014 90 80 50 70 40 60 EUR 50 EUR 30 40 30 20 20 10 10 0 Berlin Bucharest Prague St. Petersburg Warsaw 0 Berlin Bucharest Prague St. Petersburg Warsaw Source: www.trihospitality.com 8
Strong Operating Cash Flow from Hotel Portfolio Net Operating Profit (EUR) per available room Difficult years in hotel industry Solid recovery 12.131 11.837-52 % 54 % 12 % 2 % 8.088 6.890 7.375 8.031 8.031 8.796 8.796 8.954 5.853 2006 Y 2007 Y 2008 Y 2009 Y 2010 Y 2011 Y 2012 Y 2012 Y 2013 Y 2013 Y 2014 Y Source: Annual Reports 2006-2014 9 9
Office Portfolio at a Glance 100% 43,100 sqm office in total (stake adjusted 30,600 sqm) Offices (as of 31.12.2014) City Country Area Stake Occupancy rate Tenant Parkur Tower Warsaw PL 9,700 sqm 50% 90% Sodexo, etc. AIRPORTCITY, Jupiter St. Petersburg Airport RU 17,000 sqm 55% 100% Gazprom Erzsebet Office Budapest HU 15,000 sqm 100% 79% Dioszegi Office Budapest HU 800 sqm 100% 100% Sajka Office Budapest HU 600 sqm 100% 100% Groupama Garancia Insurance Zeppelin, AIRPORTCITY St. Petersburg AIRPORTCITY, St.Petersburg Parkur Tower, Warsaw Erszebet Office, Budapest 10
Pipeline Overview Development Projects Expected opening Total area / no. of rooms Beneficial ownership (%) Under construction: Offices AIRPORTCITY St. Petersburg Phase II (Zeppelin) Q2-Q3 2015 16,500 m 2 55 Erzsebet Office Tower 2, Budapest Planning phase: Q2-Q3 2015 8,000 m 2 100 Zeppelin, AIRPORTCITY St. Petersburg Airport Car Park, AIRPORTCITY St. Petersburg Retail & Conference Centre, Berlin Prenzlauer Berg approx 20,000 m 2 55 2016/17 up to 18,000 m 2 50 Mogilska Office, Krakow 2016/17 up to 20,000 m 2 100 Chopin Office, Krakow 2016/17 app. 20,000 m 2 100 AIRPORTCITY St. Petersburg Phase III Offices Land reserves in Budapest, Bialystok, St. Petersburg (Phase IV up to 110,000 m 2 ) after 2016 approx. 40,000 m 2 55 - - - Erszebet Office Tower 2, Budapest 11
Under Construction - AIRPORTCITY St. Petersburg, Zeppelin tower AIRPORTCITY St. Petersburg Offices Phase II: Zeppelin, expected opening mid 2015-16,500m 2 office, fully pre-leased 2014 Fully pre-leased Financing in place as of Aug. 2013 as of Oct. 2014 12
Under Construction - AIRPORTCITY St. Petersburg Hotel Crowne Plaza ****, 294 rooms Phase I: Jupiter 1 and Jupiter 2 opened 2011 and 2012-17,000 m 2 office, fully leased to Gazprom Phase II: Zeppelin expected opening mid 2015-16,500 m 2 leasable office area Phase III Offices - 60,000 m 2 leasable office area Phase IV Offices - up to 110,000 m 2 leasable office area 13
Pipeline - AIRPORTCITY St. Petersburg, Phase III and Phase IV Phase III Offices - 60,000 m 2 total leasable office area - 5 office towers à 13 floors - internally connected stylobat area - retail, conference and restaurant zones - 4 underground car parking levels Phase IV Offices - 110,000 m2 leasable office area 14
Pipeline - AIRPORTCITY St. Petersburg, parking AIRPORTCITY Car Park - 19,500 m 2 total leasable area - 560 car parking spaces - 3 car parking decks (2 heated decks) - 1,600 m 2 archive/storage area - 500 m 2 retail zone - car wash station - car service station - bus parking spaces 15
Under Construction - Erzsébet Office Building, Budapest The project consists of 2 separate office buildings located on one plot of land with a total of 13,149 sqm. of net leasable office area Parking is provided for about 153 cars on the surface Total leasable area 15,764 sqm. (incl. storage and common area) Lease signed for 12,250 sqm. in March 2014 Office A Office A 16 Office B
Erzsébet Offices 17
Erzsébet Offices 18
Targets and Strategy Improve the financial and operational performance of our assets Ø Improve substantially recurring revenues and earnings Ø Generate stable cash flows from existing hotels Ø Increase NOP per available room and NAV per share Take advantage of recovery on transaction markets and further improve the capital structure and efficiency of the Group`s balance sheet Ø Recycle 5 % - 8 % of Gross Asset Value p.a. (in 2014: 2%, incl. Jupiter sale closed in Feb. 15: 9%) Target development and land bank to 10 % - 15 % of Gross Asset Value (currently approx. 10%) Ø Monetize the land bank through selective development or divestment Long-term leverage target of adjusted equity ratio* of 40 % - 50 % (31.12.14: 24 %, incl. Jupiter sale > 25%) Assuming that the real estate assets are recognized at their fair value 19 19
Segment Reporting 2014 EUR (in thousand) 2014 2013 +/- restated HOTELS Revenues 106,510 112,289-5% Net operating profit (NOP) 30,992 31,262-1% Rooms available 3,461 3,554-3% NOP per available room in EUR 8,954 8,796 2% NOP Hotels 30,992 31,262-1% Occupancy Rate, % 68% 67% 1pp RevPAR in EUR 53 53 - INVESTMENT PROPERTIES- OFFICES Revenues 10,560 11,555-9% EBITDA Investment Properties 5,994 4,197 43% Development & Services Revenues 2,866 10,223-72% Gains on property disposals 367 4,240-91% EBITDA D&S -3,022-1,811 - Note: *including Joint Ventures on a proportionate basis 20 20
Income Statement 2014 EUR (in thousand) Y 2014 Y 2013 +/- restated Revenues from Hotels 61,559 69,435-11% Revenues from Investment Properties 9,813 10,731-9% Revenues from Development & Services 2,476 10,019-75% Total revenues 73,848 90,185-18% Expense directly attributable to the revenues -45,559-60,382-25% Gross income from revenues 28,289 29,803-5% Income from the disposal of properties -30 2,030 - EBITDA 17,114 18,812-9% Depreciation, amortization and revaluation -22,274 16,839 - EBIT -5,160 35,674 - Financial result -31,592-23,578 34% Loss/Profit for the period -35,306-7,116-21 Measurement and foreign currency losses in Russia were the key reason for the loss of EUR 35.3 mn Operating costs decreased, Gross income from revenues minus 5 % to EUR 28.3 mn. EBITDA of EUR 17.1 mn. (- 9 %) even though there was no income from the disposal of properties 21
Balance Sheet - 2014 EUR (in thousand) 31 12 2014 31 12 2013 +/- restated Non-Current Assets 389,247 403,825-5% Current Assets 104,157 102,227-2% Total Assets 493,404 506,052-2% Total Equity 57,676 88,711-35% Long-term Debt 353,447 340,064 4% Short-term Debt 83,280 77,277 8% Total Liabilities 493,404 506,052-2% Sources: Financial Statements H1 2014 22
Cash Flow Statement - 2014 EUR (in thousand) 2014 2013 +/- restated Inflow 76,073 88,066-14% Outflow (55,531) (69,618) -20% Cash flow from operating activities 20,542 18,448 11% Inflow 17,195 12,922 33% Outflow (23,684) (13,879) 71% Cash flow from investing activities (6,488) (957) 578% Cash flow from financing activities (8,848) (18,869) -53% Cash and cash equivalents at the end of period 9,765 6,618 48% 23
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Warimpex Snapshot Business Model Warimpex Finanz- und Beteiligungs AG, Vienna Acquisition Growth Potential Development Long-term Value Creation Hotels Investment Properties Ongoing Income Acquisition of land next to and below Hotel Chopin in H1 2013 Lease of land next to AIRPORTCITY St. Petersburg for car park in 2014 Gazprom new tenant at AIRPORTCITY St. Petersburg New tenant for Erzsébet Office in Budapest Further developments in St. Petersburg, Krakow, Berlin and Budapest Core Assets Non Core Assets Sale 50% stake in angelo Hotel Munich (Jan 2013) Palace Hotel Prague (July 2013) Le Palais office Warsaw, (Oct 2013) Le Palais Hotel, Prague (Dec. 2013) Savoy Hotel, Prague (June 2014) Jupiter office, St. Petersburg (Feb. 2015) 25 25
Experienced Management Team Warimpex s principal shareholders, Franz Jurkowitsch (Chairman) and Georg Folian (Deputy Chairman), have each more than 25 years of experience in developing, operating and owning real estate assets in CEE Strong team of senior country managers in place with significant local experience The management team has a proven track record in the region in developing or acquiring and redeveloping numerous real estate projects Management Board of Warimpex Alexander Jurkowitsch Franz Jurkowitsch Georg Folian Florian Petrowsky Member Chairman Deputy Chairman Member 26
Over 30 Years Experience in Real Estate Asset Management HOTELS Number of rooms In Portfolio from Sale Palace Hotel Prague 5-star, 124 rooms Purchased 2001 2013 angelo Hotel Munich 4-star, 146 rooms Opened 2008 2013 Intercont Warsaw 5-star, 414 rooms Opened 2003 2012 Sobieski Hotel Warsaw 4-star, 435 rooms Purchased 2006 2011 andel s Krakow 4-star, 159 rooms Opened 2007 2009 andel s Hotel & Suites Prague 4-star, 239 rooms + 51 studios Opened 2002 2005 Sheraton Hotel Warsaw 5-star, 350 rooms Opened 1996 1996 Pruhonice Sport Hotel, Prague 4-star, 100 rooms Opened 1990 1990 Holiday Inn, Warsaw 4-star, 172 rooms Developed 1989 Forum Hotel, Prague 4-star, 560 rooms Developed 1989 Jelina Gora Hotel 4-star, 172 rooms Developed 1989 Panorama Hotel, Prague 4-star, 456 rooms Developed 1983 Novotel Hotel, Budapest 4-star, 324 rooms Developed 1982 Penta Hotel, Budapest 4-star, 400 rooms Developed 1982 OFFICES Area (sqm) In Portfolio from Sale Csalogany office, Budapest 2,600 sqm Purchased 2003 2009 Pauler office, Budapest 3,000 sqm Purchased 2006 2008 andel s City SO 11, Prague 4,000 sqm Opened 2007 2007 Warsaw Towers, Warsaw 20,000 sqm Opened 1999 2000 27
Strong Track Record in Developing and Selling Properties in CEE Annual Gains from Disposal (EUR mn.) Total Gain from Disposal 2005-2013 Angelo Munich, Palace and Le Palais, Prague, Le Palais Office Warsaw Hotel InterContinental Warsaw, currently leased back 2013 2012 4,2 12,4 25% stake in Hotel Sobieski, and Louvre Joint Venture. 2011 3 EUR 122,3 mn. Stake in Palais Hansen, Vienna and the Le Palais office building, Warsaw Office building in Budapest, andel s Krakow 10% stake in AIRPORTCITY St. Petersburg, Villa Margereta, office building in Budapest 2010 2009 2008 8,8 3,9 13,9 25% stake in AIRPORTCITY St. Petersburg 2007 31,5 Brno shopping centre 2006 6,3 andel s Prague 2005 38,3 0 10 20 30 40 28
Stable NNNAV per share compared to June 2009 despite higher number of shares following capital increase in 2010 Comparison of NNNAV per share and the Company s share price on the VSE EUR 12 11 10 9 8 7 6 5 4 3 2 1 0 Juni.07 Juni.08 Juni.09 Juni.10 Juni.11 Juni.12 Juni.13 31.06.2014 share price NNNAV/share Source: Company Annual Reports 29
CBRE Valuation of Warimpex Assets as of 31 Dec. 2014 Gross Asset Value vs. Book Value (EUR mn.)*- Gross Asset Value Structure (EUR mn.)* hidden reserves 600 500 400 300 200 498,0 382,6 60,6 54,7 520 500 480 460 440 420 498,0 419,7 78.3 Hidden reserves 100 400 0 Gross Asset Value Existing hotel assets Existing office building assets Projects under development 380 Gross Asset Value Book Value Total GAV*: EUR 498.0 mn. Book Value: EUR 419.7 mn. REVALUATION POLICY: The company does not revalue its HOTEL properties each financial year All gains from the appreciation in value of a property are recognized at the time the property is sold 30
Warimpex on the Stock Exchange Shareholder structure Free Float 40% MetLife PTE > 5% Aviva OFE > 5% Franz Jurkowitsch 14% Georg Folian 14% Amber Privatstiftung 11% Bocca Privatstiftung 11% Key Exchange Data Number of shares 54,000,000 Vienna Stock Exchange Warsaw Stock Exchange Ticker symbols Equity Ratio (31.12.2014) ATX Prime, Immobilien-ATX Market Main 50 Plus, WIG SWIG80 Stock Exchanges WXF Reuters WXFB.VI 12% (24% adjusted)* *) assuming fair value of real estate assets according to latest external valuations 31
Long-Term Positive Global Trends Warimpex business stands at the intersection of three powerful global trends 1 2 3 EXPANDING MIDDLE CLASS STRONG GROWTH IN GLOBAL TOURISM STRONG GROWTH IN RECEIPTS 1 bn. 48 Middle Class Population 1990 2010 2030 Global Tourist Arrivals (in mn.) 435 2 bn. 940 5 bn. 1809 1990 2010 2030 Global Tourism Receipts in CEE (in bn.usd) +16.9% 4% CAGR +500 million 5% CAGR +870 million +6.6% 56 56 60 2010 2011 2012 2013 Source: UNWTO, 2014 32
Company History Impressive History 1980 Warimpex enters real estate market Novotel, first Warimpex hotel opened in Hungary 1982-1988 Penta Hotel Budapest, Forum Hotel Prague 1988-1989 1994-1996 Holiday Inn, Warsaw Hotel Palace, Prague Hotel Savoy, Prague Hotel Sheraton, Warsaw 1999 Warsaw Towers (20,000sqm office building) 2001-2003 2004-2006 Shopping and Entertainment Gallery, Brno Hotel Andel s, Prague Hotel Le Palais, Prague Hotel InterContinental, Warsaw Andel s Suites, long stay apartments, Prague Leaders Club guests recognition Award for Le Palais Hotel Angelo, Prague Hotel Chopin, Krakow Hotel Sobieski, Warsaw 2009-2014 Hotel Andel s, Lodz Hotel Angelo, Kattowice Hotel Andel`s, Berlin Hotel Angelo, Bucharest Hotel Angelo, Ekaterinburg Hotel Crowne Plaza, AirportCity St. Petersburg Le Palais office, Warsaw Jupiter towers, AirportCity St. Petersburg Palais Hansen Kempinski Vienna 2007-2008 IPO in Vienna and Warsaw Hotel Andels s, Krakow Hotel Liner, Ekaterinburg Hotel Angelo, Munich Hotel Angelo Pilsen 33 33
Notes 34
Notes 35
Corporate calendar 29 April 2015 Publication of the Annual Report 2014 28 May 2015 Publication of the results for the first quarter of 2015 8 June 2015 Annual General Meeting 27 Aug 2015 Publication of the results for the first half of 2015 30 Nov 2015 Publication of the results for the third quarter 2015 Contact details Franz Jurkowitsch Daniel Folian Christoph Salzer CEO Investor Relations Press Tel.: +43 1 310 55 00 125 Tel.: +43 1 310 55 00 156 Tel.: +43 1 310 55 00 143 franz.jurkowitsch@warimpex.com daniel.folian@warimpex.com presse@warimpex.com 36