Wereldhave N.v. · EURONEXT:WHA
Wereldhave — Investor Day (October 2017)
21 slides from Wereldhave's investor day presentation, Oct 4, 2017
Slide 1: Capital Markets Day 2017 - General introduction
Capital Markets Day 2017 General introduction 1 Dirk Anbeek - CEO 4 October 2017
Slide 2: Capital Markets Day 2017 | Agenda
CAPITAL MARKETS DAY 2017 | AGENDA 1. Asset allocation strategy 2. Optimizing the customer journey STRATEGY 3. Trends in the retail segment 4. Proposition 2030 1. Change in leadership 2. From input to output UPDATE ON FRANCE 3. Dealing with a challenging market 4. NRI H2 will be worse than H1, stabil
Slide 3: Company Profile
COMPANY PROFILE CONVENIENCE SHOPPING CENTRES IN NORTH-WEST EUROPE GEOGRAPHICAL OVERVIEW KEY FACTS # of shopping centres 30 Average size 27,000m² # of shopping centre visitors (H1-17) 73m 1 Loan to value ratio1 38.9% Occupancy shopping centres 95.4% 16 EPRA NIY shopping centres 5.0% 7 WALT2 5.0 years
Slide 4: The Portfolio: 2011 and Today
THE PORTFOLIO: 2011 AND TODAY THE EVOLUTION FROM DIVERSIFIED TO RETAIL PURE-PLAY YE 2011 H1 2017 Belgium 14% Netherlands USA 24% 39% Belgium 22% Finland 16% UK 4% 3% 15% Finland France 15% 6% 39% Spain 5% 57% Netherlands France 20% 24% 97% Shopping centres Shopping centres Offices 4 Offices Other De
Slide 5: Strategic Plan 2013-2016 Successfully Executed
STRATEGIC PLAN 2013 – 2016 SUCCESSFULLY EXECUTED 1H17: NETHERLANDS, BELGIUM AND FINLAND STRONG; FRANCE DISAPPOINTED 5
Slide 6: Grocery Shopping as Resilient Anchor
GROCERY SHOPPING AS RESILIENT ANCHOR GLOBAL PERCENTAGE: ONLY SHOPPERS ATTITUDE ABOUT BUYING FRESH AND WHO SAY THEY SHOP MORE OFTEN ONLINE OR IN- HOUSEHOLD GOODS ONLINE STORE BY CATEGORY Fresh groceries Furniture, decor, tools Africa/Middle East Wine and alcoholic beverages Packaged grocery food Euro
Slide 7: Asset Allocation Strategy
ASSET ALLOCATION STRATEGY FOCUSING ON GROWING CONSUMER MARKETS Average GLA Split Food incl. F&B / 1 hyper All Leisure 73 m 27,000 m2 or 2-3 super- daily needs 28% Visitors in average size markets available H1 2017 Food anchored convenience Dominance in their catchment Other areas with above market s
Slide 8: Convenience Shopping Shows Strong Fundamentals
CONVENIENCE SHOPPING SHOWS STRONG FUNDAMENTALS DRIVES FOOTFALL RESILIENT THROUGH THE CYCLE RESILIENT TO ONLINE FOOTFALL # PER WEEK1 THE NETHERLANDS WERELDHAVE CATEGORIES IN PORTFOLIO2 30,000 140 Supermarkets 25,000 28% Internet 130 33% GDP resilient 20,000 120 110 48% 48% Omnichannel 10,000 Fashion
Slide 9: Strategic Management Agenda 2017-2019
STRATEGIC MANAGEMENT AGENDA 2017-2019 PROGRESSING WELL STRATEGIC DIRECTION TARGETS 2017-2019 H1 2017 ▪ FI - RESPOND TO ▪ Optimise customer journey ▪ NL + ▪ Drive footfall above market CONSUMER TRENDS ▪ Continue tenant intimacy ▪ BE + ▪ FR + ▪ Improve resilience of tenant ▪ >85% resilient ▪ 81% base1
Slide 10: Optimise Customer Journey
OPTIMISE CUSTOMER JOURNEY In the coming 18 months we will focus on creating a frictionless shopping experience focused on customer needs ▪ The vision has been defined 10 ▪ Preparation Q4 2017 ▪ Programme starts 2018 ▪ In scope: Netherlands, Belgium & France 10
Slide 11: Socio Demographic
SOCIO DEMOGRAPHIC NUMBER OF 55+ IN MILLIONS IN THE NETHERLANDS* “Shopping centers and retail will 5.4 +20% 6.5 increasingly become an integral part of urban society” 2017 2030 DEMOGRAPHIC GROWTH FORECASTS 2017-2030* 7.8% 6.7% ▪ Rise of the Elderly 11 4.4% ▪ Rise of single-person households & Lonelin
Slide 12: Consumer Lifestyle
CONSUMER LIFESTYLE “Besides the well-known chains, retail centers will increasingly be home to specialized small(er) businesses tailored to individual needs. Large and small retailers increasingly complement each other.” ▪ Individualised Life 12 ▪ Experiences (rather than owning) ▪ Conscious life-st
Slide 13: Trends Retailing
TRENDS RETAILING Shopping centers will transform into important links within the omni-channel shopping experience. ▪ Scattering of shopping areas 13 ▪ Changing formats in retail ▪ Integration of Commerce channels ▪ Changing requirements of Shopping Areas 13
Slide 14: Technology
TECHNOLOGY Technology-enhanced shopping offers many opportunities for retailers to adapt their offering to the needs of shoppers. ▪ The Internet of Things will rise14 ▪ Data as a fundament ▪ Mobile Everywhere ▪ Increasing Innovation Agility 14
Slide 15: Moving Towards Mixed Use
MOVING TOWARDS MIXED USE OPTIMISING HIGHEST & BEST USE OF OUR LOCATIONS Time is rapidly becoming the most valued commodity for city-dwellers. Proximity is key. ▪ Residential 15 ▪ Increasing Food & Beverage offer ▪ Co-working office space ▪ Healthcare ▪ Childcare 15
Slide 16: Proposition 2030
PROPOSITION 2030 Wereldhave brings people together in a mixed-use space, taking convenience to the next level and plays a vital role for local communities through direct and indirect investments 16 16
Slide 17: Proposition 2030
PROPOSITION 2030 Owner’s Objective: Maximize Asset Value • Attract more Visitors • Make the Visitor spend more • Maximize Occupancy Rate • Optimize Visitor’s Objective: Get the most out of their time spent • Have a painless shopping experience • Feel special, serviced and entertained • Save time & m
Slide 18: Proposition 2030
PROPOSITION 2030 TO GET TO OUR PROPOSITION 2030 WE WILL IMPROVE THE CUSTOMER JOURNEY IN 2-YEAR INCREMENTS ALONG THE WAY PROPOSITION 2030 • Mixed Routine Needs • One stop Shop • Bringing Community Together • Customer Centric Experience • Home Away from Home CUSTOMER JOURNEY • Excellence Phase 1: 2017
Slide 19: Proposition 2030
PROPOSITION 2030 Corporate Enablers Organizational Capabilities: Strategic Partnerships & Business Development Capabilities, Testing, 19 Innovation Team, Branding Monetisation, Program Management Office 19
Slide 20: A View on Operations 2017-2018
A VIEW ON OPERATIONS 2017-2018 OCCUPANCY RENT LEVEL PLATFORM CHALLENGES (vs 1H17) SPEED TO MARKET NETHERLANDS +1% STABLE OPTIMUM DEVELOPMENTS STRONG, SIZE GROWTH AT DECENT BELGIUM +1% STABLE COULD RISE PRICES, GENK 20 MARKET, OUTPUT, FRANCE STABLE SLIGHTLY DOWN TO MATURE STRENGTHEN MERIADECK RELATIV
Slide 21: Conclusion: A Strong Base for Resilient Cash Flows
CONCLUSION A STRONG BASE FOR RESILIENT CASH FLOWS STRONG CONVENIENCE BEST IN CLASS OPERATOR IN 3 STRONG BALANCE SHEET SHOPPING CENTRE LOCATIONS OUT OF 4 MARKETS LTV TARGET 35-40% FRANCE WILL BE ADDRESSED IN STABLE TO GROWING DIVIDEND, DISCIPLINED ASSET ROTATION 2017/2018 85-95% OF EPRA EPS FOCUSED A