Douja Promotion Groupe Addoha. An African leader of Real Estate Development

Transcription

1 Douja Promotion Groupe Addoha An African leader of Real Estate Development

2 Summary I II III IV V Addoha Group: Strong fundamentals & a clear focus Development in Morocco Development in Africa Key highlights & H Results Appendix

3 Addoha Group: Strong fundamentals & a clear focus

4 Strong fundamentals Leading African real estate development Group Four strong brands giving multi segment market exposure Robust long term growth fundamentals The most attractive dividend yield in the real estate sector in Morocco Full benefits now largely harvested from Cash Generation Plan Strong competitive advantages that ensure the continuity of its leadership in Morocco and will allow it to conquer new geographical markets

5 Clear focus Cash generation is N 1 priority Disciplined operational management to maintain margin growth momentum A focused and prudent development strategy in Morocco Ramp up in African development projects A robust Group possessing all the resources to move forward with confidence

6 Robust foundations to build our future Well-known multi-market brands allow to focus on segments showing positive trends Operating strengths and financial discipline support future growth & give flexibility Robust financial structure maintains land investment momentum Operating expertise underrights success potential of African development A track record of commitment delivery A new strategic plan set to be announced before the end of 2017

7 Development in Morocco

8 key player in the real estate sector in Morocco Growth potential of the real estate sector in Morocco Unique business model Strong brands across all market segments Robust consented land reserves Proven real estate project development know-how A successful client focused commercial know-how

9 Growth potential of the real estate sector in Morocco Well positioned to leverage sector growth drivers Shortage of affordable & social housing Government priorities Significant deficit of units expected to reach in 2020 Current average housing production units to increase to units Fight against insalubrious housing is a national priority: households Government goal: achieve a domestic production of units / year Demographic dynamics Mortgages access Growing urbanization rate to reach 63% by 2020 Morocco s young population: 68% < 34 years 25% between 20 and 34 years Cultural desire to become home owner Government incentives for affordable housing loans (2010 Finance Act) Mobilization of private promoters (ie Addoha Fogarim, Fogalef)

10 Unique business model 1 Market reputation and trust Customer confidence to commit to property acquisition from development plans and show homes Price transparency Commercial know-how Innovative one stop shop for customers

11 Strong brands across all market segments Leader in providing access to affordable housing for low-income households Several programs of social housing within the framework of Moroccan state objectives Pioneer in the field of intermediate housing Several housing programs midrange for the middle classes with more demanding residential criteria. Prestigia Luxury Home positioned to meet strong demand for luxury properties in the most popular cities in Morocco. Top of the range standards of design, equipment and finish

12 Robust consented land reserves ha fully authorized Mainly composed of urban land Focused acquisitions for affordable & social housing in the Casablanca-Rabat axis Momentum of search for high potential opportunities

13 Proven real estate project development know-how The optimization of the project development essential to drive margins Architectural conception and dimensioning of the Project; Financial arrangements of the Project; Negociations of contracts with the suppliers; Management and coordination of the various external teams involved in the project. Launch of on-site construction ; Monitoring and guidance of the buyers. Prospecting stage Development stage Commercialization stage Implementation stage Identification and acquisition of land reserves required for the implementation of Real Estate projects Implementation of the communication and marketing strategy; Sales management. Obtaining authorizations

14 A successful client focused commercial know-how The innovative concept of the one-stop shop Banks Guichet Unique One-stop shop: an innovative concept Notary Authentication of signatures 1 single point of entry for the customer Duplicated in all the cities in which the Group is present Registration Land registry Public services Advantageous pricing conditions (banks, notaries) for the customers Commercial chain value A clear and monitored approach Reception the of customers Viewing of the show house Loan simulation Registration and bookings Elaboration of the loan process Preparation of notarial deeds Release of loans and settlement of the full price Key handover

15 Development in Africa

16 An ambitious development strategy in Sub-Saharan Africa An extensive presence on the African continent Addoha continues its exploration in sub-saharan Africa to position itself as a leader in the real estate sector in the African continent Senegal Objective : units housing under the agreement Guinea Objective : units 2 lands acquired Ivory Cost Objective : units 2 lands acquired Tchad Objective : units 1 land allocated Cameroun Objective : units 1 land allocated Congo Objective : units 1 land allocated Countries in development - Priority (tax agreements and first purchased or allocated land) Countries to develop in a second phase

17 An ambitious development strategy in Sub-Saharan Africa Challenges in the real estate sector across Africa Ongoing housing shortage vs continuous demand Multiple segment housing needs (affordable, social, intermediate) Financing & funding a major barrier to property acquisition Addoha Group has the know-how Core strategy to develop real estate projects based on proven experience (Cote d Ivoire, Senegal, Guinea Conakry) Expertise of covering all market segments and adapting projects to local needs Leverage banking partnerships to facilitate & support credit access Poor availability of construction materials Absence of coherent real estate planning & development Sister company Ciments de l Afrique expansion plans to ensure cement supply in Sub-Saharan Africa Replicate successful Moroccan one stop shop customer model Complex operating environment and conditions Expertise in developing affordable housing programs with agreements signed in several countries Disciplined land acquisition policy focused on growth locations

18 Key highlights & H Results

19 Key highlights of H Ongoing improvement in operational performance despite mixed market conditions Operating margin climbs 3 points to 29.4% 10% increase in sales reservations to 6,000 units Further reinforcement in the financial structure Reduction in Working Capital Requirement to 669 m Dh Continues debt reduction to 5.9 bn Dh Debt ratio decreased to 32% Operating margin 29,4% +3 pts Financing cost 204 m Dh -16% Net debt 5,9 bn Dh -3,2% Debt ratio* 32% -0,4 pts (*) Debt ratio : Net debts/(net debts + Equity)

20 Consolidated accounts H P&L figures In m Dh H H Turnover Operating profit Operating margin 26.3% 29.4% Net margin 19.5% 21.4% Net profit, Group share Turnover in the 1st Half 2017 totaled 3 bn Dh representing units delivered. Addoha postponed part of its building programme to the 2nd half so as to maximise cash generation and continue to improve margins. The operating margin stood at 29.4%. The Net Profit Group Share stood at 561 m Dh, despite the postponement of production to the second half. Financing costs were reduced by 16% compared to the first half of 2016 following renegotiation of terms coupled with the ongoing debt reduction.

21 Consolidated accounts H Balance sheet figures In m Dh Total shareholder s equity Long term debt Working Capital Requirement The success of the Cash Generation Plan has delivered 3.4 bn Dh of net debt reduction as at the end of June. The Group s financial structure now places it in a position of strength with the property sector: Gearing 32% Continuous WCR reduction totaling more than 3 bn Dh since 2015 Operating cashflow of close to 1.4 bn Dh Consolidated shareholder equity of 12.5 bn Dh

22 Operational performance as at June 30, 2017 Cumulative operational performance Social & intermediate housing BU at June 30, 2017 High end BU at June 30, 2017

23 2016 Key figures In m Dh /- Turnover % Operating profit % Operating margin 17.6% 22.3% 4.7 pts Net margin 11.9% 14,1% 2.2 pts Net profit, Group share ,4% Net debt Gearing Debt ratio (**) Working capital

24 Addoha Group leading the way in the region

25 Appendix

26 Key figures as at December 31, 2016 P&L performance Consolidated turnover The consolidated revenue of 2016 amounted to 7.12 bn Dh, corresponding to units, registering a slight. The gross margin was 29%. The net margin was 15.8%. Income and margin Gross margin Net margin

27 Key Balance sheet items as at December 31, 2016 Working capital The Group s working capital decrease allowed a significant improvement in the Group s financial situation. This decrease was achieved mainly through. Reduction of finished product inventories m Dh vs 2015 & 1805 m Dh vs Cumulative reduction of 31% since launch of CGP The disbursements related to land acquisition m Dh in 2016 (mainly the Casablanca-Rabat axis) Net debt The reduction in account receivables: - Account receivables decreased by 1 25 m Dh since December 2014 Gearing Debt ratio (**) Net debt at December 31, 2016 was 6.2 bn Dh, with a gearing (*) of 50% versus 63% in The Group aims to bring gearing down to 33% by end-2017 (*) Gearing: Net debt/equity (**) Debt ratio: Net debts/(net debts + Equity)

28 Stock Performance