Massimo Caputi Prelios - Approvato Prelios Business Plan 2014-2016

8/12/2019 Massimo Caputi Prelios - Approvato Prelios Business Plan 2014-2016

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PRELIOS: 2014-2016

,


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GROUPSergio Iasi C

2014 2016 B


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Business Model 1/2

PRELIOS GROUP

Prelios Group is a leading European asset management group providing a full ran

.

The Group has been listed on the Italian Stock Exchange since 2002.

Through independent operating companies, Prelios Group is the first platform of real e

services for the management and value enhancement of third parties portfolios.Prelios Grou com rises an extremel well- ualified structure which includes about 80

abroad, with significant professional skills and a track record of excellence in the inter

BUSINESS MODEL PRELIOS

Management Platform


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Business Model 2/2

PRELIOS GROUP

Over 20 years of experience in advanced real estate and financial services f

, ,

agencies and international awards

Prelios SGR*: manages real estate funds mainly with 25 funds and nearly 3.7 bln Eu

Prelios Credit Servicing is a financial intermediary (compliant with art. 107 of the Con

specialized in managing and recovering non performing loans (NPL) with 8.5 bln NP

Prelios Integrated Services provides a complete range of services encompassing the

assets

Prelios Integra is one of the leading Italian operators providing integrated servic

ro ect develo ment

Prelios Agency provides real estate agency services to national and internation

Prelios Valuations is one of the leading Italian independent operators in real es


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PRELIOS GROUPOwnershi structure

Below a glance at the current shareholder structure of the Company after th

ECONOMIC SHARE CAPITAL SHARE CAPITA

PIRELLI & C.

Economic share capital

PIRELLI & C.

Share capital

33,6%

23,3% UNICREDITUNICREDITGRUPPO

CAMFIN/LAURO

SESSANTUNO

233,1%

16,4%

CAMFIN/LAURO

SESSANTUNO

INTESA SANPAOLO

INTESA SANPAOLO

BANCA POPOLARE DI

MILANO


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PRELIOS GROUP2012-2013 Reor anization and Foundation for Relaunch

2012

Consolidated revenues: 85.9 mln (*)

Consolidated EBIT: - 18.9 mln (*)

* - .

MAIN EVENTS

Selection of the industrial partner (Feidos 11)


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PRELIOS GROUP2012-2013 Reor anization and Foundation for Relaunch

2013

Consolidated revenues: 73.1 mln *

Consolidated EBIT: - 28.1 mln (*)

Consolidated net result: - 332.8 mln (*)

MAIN EVENTS

Entr of new ualifieCompletion of the Group recapitalization process and debt

operating companies

Detailed due diligenc

NIC segmentation and

rescheduling

Strengthening the business development function at the

holding company and operating companies level

Implementation of ne

periodical assessme

Repositioning of the operating companies in three key

segments: asset management, property and project

services, NPLs management


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PRELIOS GROUPMain Results achieved in 2013

Contracts achieved for the establishment of two real es

Fund PAI and Fund Cassa dei CommercialistiManagement

ramewor agreemen e ween re os n egra e erv ce

Preliminary agreement with Enel for the mapping of instru

Revamped pipeline of new projects under developmen

development

costs by about

14 mln

vs. 2012

- .

Rationalization of resources both at holding company leve

Further reduction of personnel by 300 units planned in mid

disposal of German residential service platform

Reduction of nonconsolidated debt by

0.5 bln (vs. 1.5 bln at

Disposal of DGAG residential asset portfolio

Gradual disposal of Highstreet retail asset portfolio in Germ

Transfers of minor residential asset portfolios in Germany (S

Recovery ofRepurchase of 20% of PRECS held by Calyon


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PRELIOS GROUPInvestments Overview

TheInvestment Portfolio Management SBU is devoted to monitoring, manageme

Prelios Investments Real Estate Vehicles SPV Funds and NPLs in Ital Ge

Real Estate

Italy

232

millions


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PRELIOS GROUPNet Invested Ca ital break-down

ITALY OTHER C

Funds + Holdings 177,6

Vehicles (SPV) + Holdings 54,9

Germany

DGAG - Excluded Assets

DGAG - Residential

e c es - eve opmen ,

Vehicles - Portfolio 12,8

Vehicles with Significant Equity Commitments 6,5

Other* -6,3

Mistral

Prelios Minorities/Altro

NPL 11,4

NIC Total 243,8

Poland

NIC Total

Italy Other Count

Vehicles(SPV)+Holdings

22%22%

NPL

5%


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PRELIOS GROUP 2014-2016 PLANHi hli hts 1/2

The pure player model focused on two business lines is confi

Asset management (Prelios SGR and Prelios Credit Servic

Real estate services (Integrated services)Pure

Focus on larger accounts, long-term contracts and non-captive clie

Play a leading role to aggregate subjects in asset management an

Start the process to create an European asset management platfo

p ayer mo e

Geographical

presence

Italy

Germany (primarily shopping centers and use that country p

opportunistic development in the area of Northern Europe)

Stand alone

development

Revenue growth on a Stand Alone basis. Actions aimed at de

revenues through the implementation of projects encompassed in

and also by starting stable synergies with Shareholders/Lenders.

The Plan does not reflect the option of aggregation with Fortress o

management assumes that, from 2015, it will be possible to start f

Cost Efficiency actions aimed at further rationalizing the cost


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PRELIOS GROUP 2014-2016 PLAN

Hi hli hts 2/2

Disposal strategy confirmed, focus on maintaining the portfolio v

portfolioan pro ec ng e nves men s, e er y

a) transfer in 2014-2016 period

b) through possible deconsolidation transactions

Strengthening

of relations with

banking partners

Strengthen the relationships with banking partners with the goa

make Prelios become the reference player in the Real Estate an

NPL sector in the next two years

Financial

Improvements

Actions to balance the financial straits and promote the correlat

between cash inflows and cash out, trough optimizations and

postponement beyond the term of the Plan


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PRELIOS GROUP

RISTRUCTURINGPROCESS

Delay of more than

nine months in the

completion

of the Group

restructuring plan

ADVERSE MARKETENVIRONMENT

INTEGRATEDSERVICES

AGENCYREAL ESTATE

ASSETSPRECS GERMANY

Persistent downturn of

the market that does not

allow recovery of the

investment value

Delays in

attracting new

business plan

provided by

Fenice Plan

Overestimation of

transactions in 2013 and

of the potential of Prelios

network to attracting non-captive business

(especially in the second

half of 2013)

Solving management

mandates securitization

vehicles of Crdit

Agricole

Mandatory" sale

of the service platform

together with the sale

of the residential porfolioof DGAG

Need to realign the

values of some more

difficult assets than

expected in theFenice Plan

New 2014-2016 Business Plan vs Fenice Plan

4


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PRELIOS GROUP 2014-2016 PLANHighlightsNew Positioning as a Pure Management Company (1/2)

The pure player model focused on two business lines is confirmed

Asset management (Prelios SGR and Prelios Credit Servicing)

Real estate services (Integrated services)

Focus on larger accounts, long-term contracts and non-captive clientsPlay a leading role to aggregate subjects in asset management and services

Start the process to create an European asset management platform

Pure

player model

Geographical

presence

Focus on:

Italy

Germany (primarily shopping centers and use that country presence

as a platform for opportunistic development in the area of Northern Europe)

Stand alone

development

Revenue growth on a Stand Alone basis. Actions aimed at developing management platformrevenues through the implementation of projects encompassed in the business development

pipeline and also by starting stable synergies with Shareholders/Lenders.

The Plan does not reflect the option of aggregation with Fortress operating structures.

The management assumes that, from 2015, it will be possible

to start further aggregation options

Margin

ImprovementActions

Cost Efficiency actions aimed at further rationalizing the cost structure of the Group(after

the already significant savings in 2013) without affecting the development and retention of human

excellences primarily through:- further rationalization of the costs of consultancy and head quarter

- streamlining the cost of staff

Focus on Higher Margin Clients and Services Mix

5


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PRELIOS GROUP 2014-2016 PLAN

Confirmed disposal strategy, protecting the value of portfolioinvestments, either by

transfer in 2014-2016 time span

through possible deconsolidation transactions

Investmentportfolio

Strengthening

of relations with

banking partners

Strengthen the relationships with banking partners with the

goal to make Prelios become the reference player in the Real

Estate and NPL sector in the next two years

Financial

Improvements

Actions to balance the financial straits and promote the

correlation between cash inflows and cash out, trough

optimizations and postponement beyond the term of the Plan

HighlightsNew Positioning as a Pure Management Company (2/2)

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EBIT Management Platform: CAGR (2013-2016) + 40%(2013 Value: 6.3 mln Euro

NET FINANCIAL POSITION: in 2016 < 200 mln Euro

(2013 Value: 388.4 mln Euro)

1) Il valore 2013 non include lesercizio del Convertendo (pari a 235,9 milioni di euro al 31/12/2013) avvenuto in data 14 Aprile 2014

PRELIOS GROUP2014-2016 Targets

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PRELIOS GROUP


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PRELIOS GROUP

REVENUES GROWTH ON A

STAND ALONE BASIS

FOCUS ON HIGHER

MARGIN SERVICES

AND CLIENTS MIX

CAGR EBIT / CAGR

REVENUES ~ 2.5x

EBIT 2013

6.3 mln EuroCAGR ~ 40%

EBIT MANAGMENT PLATFORM: CAGR (2013-2016)

How to get the 2014-2016 Targets

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PRELIOS GROUP


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INVESTMENT CASH FLOW: CASH

GENERATION AND NIC PROTECTION

NET FINANCIAL POSITION 2016: < 200 mln Euro

MANAGEMENT PLATF. CASH FLOW:

STABLE GROWTH

CASH IN / CASH OUT BALANCE

NFP 2013

388 mln EuroNFP 2016

< 200 mln Euro

EXECUTION OF CONVERTIBLE

ALREADY DONE

PRELIOS GROUPHow to get the 2014-2016 Targets


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PRELIOS: 2014-2016

BUSINESS PLAN PRESENTATION

www.prelios.com

Milan, 12th

June 2014

www.prelios.com

Massimo Caputi Prelios - Approvato Prelios Business Plan 2014-2016

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