The Company’s business model is based on the diversifiation of product type, economic segment and source of mortgage fiancing, to achieve flxibility and dynamically adapt to the market environment, reducing the volatility of its revenue and minimize risks related to the industry.
Likewise, the Company offers its products to the three different economic segments in each of the six states of the country where it operates, offering up to seven housing prototypes in the same community, reflcting its capacity to develop different housing segments in the same community. This model has allowed the Company to develop more than 33,000 homes in more than 22 different communities and achieve a CAGR of 16.2% in the number of homes sold from 2008 to 2017. The Company defies the three different economic segments in the following way:
Historically, the Company has maintained a conservative capital structure and leverage levels without sacrifiing growth and profiability for its shareholders.
Vinte has a leverage strategy that allows it to fully capitalize on growth opportunities that arise, while maintaining its debt indicators at healthy levels, as reflcted in the ratios of Net Debt to Equity at 0.38x and Net Debt to EBITDA at 1.35x recorded as of December 31, 2017.
In this way, the Company, in addition to achieving a sustainable long-term growth, ensures its permanence for the benefi of its stakeholders.
The Company is focused on having a diversifid structure of long-term debt. As of December 31, 2017, the average term of Vinte’s debt was 5.6 years, 46% of Net Debt was contracted at a fied rate and the rest at a variable rate of TIIE + 2.63% weighted average spread. 100% of the Company’s Gross Debt was denominated in Mexican pesos
- Available Committed Credit Lines amounts to Ps.1,135 million, which are mainly long
- Drawn Credit Lines / Total Credit lines = 53%
- Prepayment of local bond with ticker symbol “Vinte 14” for an amount of Ps.200 million
NOTES: 1) Public information of each Company. The debt balance of Vinte, discounting issuance costs in compliance with IFRS, was Ps.1,253 million as of December 31, 2017.
There are several risks that could directly impact the Company,
as part of the Company’s Risk Management, we constantly
seek to minimize them.
This material references Disclosures 201-2 of GRI 201: Economic Performance
Having its operations mainly located in Central Mexico, the Company considers that there is an available credit offering in this location for the different types of mortgages in the market.
With up to 7 housing models per market, the same Client can be adjusted in the dimensions of the home, as well as in the level of equipment offered, in order to continue maximizing revenue by Client when facing signifiant changes in the characteristics of mortgage credits.
Facing adverse financing conditions (such as the ones seen during the crisis of 2008 – 2009), the Company decided to suspend its investments for land bank acquisition and infrastructure in developments that recently started operations.
Faced with a reduction in the expected pace of home sales or titling, the Company has reduced the investment in construction, urbanization and infrastructure in the past
This material references Disclosure 201-1 of GRI 201: Economic Performance
Vinte generates value for its stakeholders in the following way