Unibail-Rodamco-Westfield SE · EURONEXT:URW
Unibail-Rodamco-Westfield — Unibail-Rodamco — Investor Day (May 2016)
23 slides from Unibail-Rodamco-Westfield's investor day presentation, May 12, 2016
Slide 1: Investor Relations and M&A - 2016 Investor Days
Investor Relations and M&A - Jaap Tonckens, Chief Financial Officer 2016 INVESTOR DAYS
Slide 2: Disclaimer
DISCLAIMER Unibail-Rodamco S.E., a Société Européenne à Directoire et Conseil de Surveillance incorporated under French law, is a listed closed end property investment company. Unibail-Rodamco is registered with the French Authority of Financial Markets (AMF). The value of your investment may fluctu
Slide 3: Investor Perception Survey
INVESTOR PERCEPTION SURVEY Neo Project, Brussels
Slide 4: Investor Perception Survey: Context
INVESTOR PERCEPTION SURVEY: CONTEXT Capital Axis collected analysts’ and investors’ feedback on the company’s interactions with the financial community 18 buy-side investors Wide range of investors 12 from a style 5 from Europe sell-side analysts and focus 6 perspective from North America 3
Slide 5: Focus of Investor Perception Survey
FOCUS OF INVESTOR PERCEPTION SURVEY Corporate social Differentiation Investor responsibility strategy relations and sustainability Dividend Financial Management and shareholder disclosure remuneration 4
Slide 6: Investor Feedback
INVESTOR FEEDBACK Financial Disclosure U-R Response Status Like-for-like NRI Glossary / same sqm (unchanged since 1990’s) ✓ Glossary Tenant sales Significant changes identified ✓ LTV LTV calculation ✓ Returns on pipeline Case studies of recently completed projects ✓ Capital Markets Days Increased as
Slide 7: Asset by Asset Disclosure
ASSET BY ASSET DISCLOSURE Lose sight of portfolio Full transparency Asset by asset management Active asset rotation strategy Objective: maximize premiums to book value at disposal 6
Slide 8: Our Business Model
OUR BUSINESS MODEL Mall of Scandinavia, Stockholm
Slide 9: Maximize Cash Flows and IRR with Strong Balance Sheet
MAXIMIZE CASH FLOWS AND IRR WITH STRONG BALANCE SHEET NET ASSET VALUE ≠ CASH FLOWS ERV disconnect Active portfolio Only an accounting Portfolio synergies between appraisers management calculation ignored and Unibail-Rodamco underestimated Capital structure Value from Management quality Discount rate
Slide 10: Pipeline Value Creation Potential
PIPELINE VALUE CREATION POTENTIAL €3.1 Bn – €4.6 Bn €11.7 Bn €10.2 Bn €4.6 Bn Value €0.3 Bn €3.1 Bn Value creation €7.4 Bn at Fair Value creation €7.1 Bn at cost Development TIC Development GMV Development GMV (Dec-2015) @ 7% y-o-c @ 8% y-o-c (projects at cost only) (projects at cost only) GMV calcu
Slide 11: Maximize Cash Flows and IRR with Strong Balance Sheet
MAXIMIZE CASH FLOWS AND IRR WITH STRONG BALANCE SHEET NET ASSET VALUE ≠ CASH FLOWS ERV disconnect Active portfolio Only an accounting Portfolio synergies between appraisers management calculation ignored and Unibail-Rodamco underestimated Capital structure Value from Management quality Discount rate
Slide 12: Discount Rate Disconnect: France
DISCOUNT RATE DISCONNECT France 6.8% 5.9% 250 bps 4.3% 500 bps 0.9% 2007 2008 2009 2010 2011 2012 2013 2014 2015 Appraisers' Discount Rate (weighted avg.) 10-yr French OAT rate (1-yr avg.) 11
Slide 13: Discount Rate Disconnect: Spain
DISCOUNT RATE DISCONNECT Spain 8.1% 8.2% 380 bps 650 bps 4.3% 1.7% 2007 2008 2009 2010 2011 2012 2013 2014 2015 Appraisers' Discount Rate (weighted avg.) 10-yr Spain OAT rate (1-yr avg.) 12
Slide 14: Discount Rate Disconnect: Germany
DISCOUNT RATE DISCONNECT Germany 8.1% 6.8% 390 bps 4.2% 630 bps 0.5% 2007 2008 2009 2010 2011 2012 2013 2014 2015 Appraisers' Discount Rate (weighted avg.) 10-yr Germany OAT rate (1-yr avg.) Germany U-R discount rate based on average on Dec-15 consolidated perimeter (i.e. excluding Centro, Gropius a
Slide 15: Non-Core Assets Disposal Premiums
NON-CORE ASSETS DISPOSAL PREMIUMS Average Premium at Disposal 2015 +13.8% 13,8% 2014 +6.0% 6,0% 2013 +6.7% 6,7% Disposals 2010-2015: 2012 +8.5% 8,5% €7.5 Bn 2011 +7.8% 7,8% 2010 +9.8% 9,8% Aggregate weighted average premium: 8.7% MARKET VALUE > BOOK VALUE Calculated as difference between TAC and las
Slide 16: We Are Not a Proxy for Macro: Tenant Sales
WE ARE NOT A PROXY FOR MACRO Consistently strong tenant sales outperformance Tenant sales growth in Unibail-Rodamco’s shopping centres vs. national indices since 2006 (rebased to 100) (1) Tenant sales performance in Unibail-Rodamco’s shopping centres (excluding The Netherlands) in portfolio of shopp
Slide 17: We Are Not a Proxy for Macro: NRI vs GDP Growth
WE ARE NOT A PROXY FOR MACRO Unibail-Rodamco LfL NRI growth(1) vs. GDP growth(2) (2009-2015 average) Average 2009-15 LfL NRI growth in U-R centres(1) Group Average 2009-15 GDP growth(2) +3.4% +0.9% Nordics +3.8% +0.5% Germany(3) +3.9% +1.7% 330 bps above GDP growth Central Europe France +5.1% +1.8%
Slide 18: Approach to M&A
APPROACH TO M&A La Maquinista, Barcelona
Slide 19: Iconic Assets Acquired Off Market – Opportunistic
ICONIC ASSETS ACQUIRED OFF MARKET – OPPORTUNISTIC #1 in #1 in #1 in #1 in Austria Barcelona Poland Germany Shopping City Süd La Maquinista Arkadia CentrO Acquisition May 2008 July 2008 February 2010 May 2014 Date 18
Slide 20: A Disciplined M&A Strategy
A DISCIPLINED M&A STRATEGY Ability to implement High asset quality synergies and execute Operational and cultural fit strategy Internal resources to Strong operational and implement synergies and BP financial rationale Window of opportunity (accretion and 2-digit IRR) VERY LIMITED NUMBER OF OPPORTUN
Slide 21: Disposals Create Value: 2-8 rue Ancelle
DISPOSALS CREATE VALUE 2-8 rue Ancelle Total price: €268 Mn(1) Acquisition date 1999 17,200 m² of offices located in Neuilly-sur-Seine - 2011 Historic tenant departure (Gras Savoye) Book value as at 31/12/11: €96 Mn 2012-14 Full refurbishment / restructuring. Cost: €52 Mn - Jan. 2013 Pre-let before
Slide 22: Disposals Create Value: Nova Lund
DISPOSALS CREATE VALUE Nova Lund Shopping centre – 2-3 Mn visits / annum • 26,000 m² • Lund (Sweden) – 20 km northeast of Malmö Fully let Non-core: size and limited reversionary potential Competition increasing Buyer: TH Real Estate – October 2015 Premium TAC: €176 Mn(1) to unaffected book value(3):
Slide 23: www.unibail-rodamco.com
unibail-rodamco www.unibail-rodamco.com