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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
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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
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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