Unibail-Rodamco-Westfield SE · EURONEXT:URW
Unibail-Rodamco-Westfield — Proxy Contest (October 2020)
22 slides from Unibail-Rodamco-Westfield's proxy contest presentation, Oct 19, 2020
Slide 1: RESET is the right plan for URW
MORE PAGES LESS WORDS Photo rather than render for cover (ask ALTERNATIVE COVER TO SAM / IR to provide) BE PROVIDED BY URW DRAFT AS OF 19-Oct-20 RESET IS THE RIGHT PLAN FOR URW
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE, PRESENTATION, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. INVESTORS SHOULD NOT ACCEPT ANY OFFER OR ACQUIRE ANY SHARES OR O
Slide 3: Disclaimer
Disclaimer This Presentation is not a prospectus within the meaning of Regulation (EU) 2017/1129 (the “Prospectus Regulation”). Any offering of securities will be made by means of a prospectus or other offer document that may be obtained from URW when subscription period for the offering commences a
Slide 4: Unprecedented tough times demand the RESET plan
Unprecedented tough times demand the RESET plan We are facing unprecedented The RESET plan is designed to protect challenges shareholders and preserve value COVID-19 persists and is influencing all RESET and maintaining the rating allows URW to refinance its consumer, business and policymaker debts
Slide 5: RESET is the only credible response
RESET is the only credible response RESET … REFOCUS … Strengthens URW’s capital structure today Fails to address immediate capital structure Financial strength restored with comprehensive and balanced plan: strengthening need immediate €3.5 Bn capital raise, €4 Bn disposals by December 2021, Address
Slide 6: €3.5 Bn capital raise: a prudent and right sized initiative
€3.5 BN CAPITAL RAISE: A PRUDENT AND RIGHT SIZED INITIATIVE, CRITICAL TO A €9+ BN DELEVERAGING PLAN
Slide 7: Access to bond and bank markets is critical in view of short-term amounts at stake
Access to bond and bank markets is critical in view of short-term amounts at stake. Cost of debt is not the issue ~€3 Bn of annual access to debt market needed from 2021 Credit lines also need refinancing onwards Debt maturities through H2 2020-2025 (as at June 2020) €9.3 Bn of credit lines as at Ju
Slide 8: Leverage is trending higher…
Leverage is trending higher… LTV is trending higher Net debt / EBITDA markedly higher than key peers URW LTV(1) evolution (%) Net debt / EBITDA LTM (as at June 2020) A 10-25% decrease in GMV would result in a 46-54% LTV(2) 11.0x (4) Like-for-like portfolio revaluation 54% of -5.1% as at H1 2020(3) i
Slide 9: … putting credit rating under pressure, absent immediate action
… putting credit rating under pressure, absent immediate action … and enables to maintain strong RESET plan addresses downgrade risk… investment grade rating “We expect the announced capital measures to be executed, hence Rating pro forma for RESET plan, failure to do so would put pressure on the ex
Slide 10: Largest balance sheet in the sector requires unquestioned access to credit markets
Largest balance sheet in the sector requires unquestioned access to credit markets URW and European BBB retail REITs gross debt(1) and rating Key highlights Credit rating (S&P / Moody’s)(2) €27.4 Bn of gross debt, A- / Baa1 A- / N.A. N.A. / Baa3 BBB / N.A. BBB / N.A. BBB- / Baa3 BBB / N.A. N.A. / Ba
Slide 11: RESET is balanced between its pillars which have been independently right sized
RESET is balanced between its pillars which have been independently right sized to deliver an optimized deleveraging plan Deleveraging plan €9.0 Bn+ €4.0 Bn o/w €620 Mn already announced €3.0 Bn (SHiFT disposal) €1.0 Bn €0.8 Bn €1.0 Bn Underway €3.5 Bn Total Disposals Capex reduction Cash dividend s
Slide 12: In a worsening environment, the capital raise de-risks URW today
In a worsening environment, the capital raise de-risks URW today De-risk business Continued RESET Secured strong credit Optimized deleveraging during unprecedented access to capital markets market volatility rating plan (incl. disposals) & liquidity Prudent approach Limited access to credit Equity r
Slide 13: A unique, actively managed platform in the most attractive cities globally
A UNIQUE, ACTIVELY MANAGED PLATFORM IN THE MOST ATTRACTIVE CITIES GLOBALLY
Slide 14: A unique portfolio of assets in the wealthiest metropolitan areas
A unique portfolio of assets in the wealthiest metropolitan areas A one-stop shop solution for global retailers looking for top quality, “must have” locations Must-have destinations for global retailers in the best catchment areas Superior asset quality(2) California Avg. #1 #1 A+ A A A A A- A A- Ra
Slide 15: The right strategy to benefit from the accelerated retail polarisation post-COVID
The right strategy to benefit from the accelerated retail polarisation post-COVID Concentration Differentiation Innovation A focused and high-quality Differentiation by consistently Innovation to gradually portfolio concentrated around re-designing, re-tenanting, rebalance and adapt our flagship des
Slide 16: A disciplined, pragmatic and nimble approach towards asset rotation
A disciplined, pragmatic and nimble approach towards asset rotation €5.3 Bn €3.4 Bn left No sacred cows US review net proceeds since Jun-18(1) of asset disposals by end 2021 in our portfolio €5.3 Bn net disposal A credible and carefully Systematic review of all URW has been working for proceeds sinc
Slide 17: URW governance has the proper checks, balances and skills in place
URW GOVERNANCE HAS THE PROPER CHECKS, BALANCES AND SKILLS IN PLACE
Slide 18: URW is recognized as a corporate governance leader
URW is recognized as a corporate governance leader 1 Best possible score For Corporate Governance and Business Ethics - top of the A- sector AAA Best possible rating for the 6th consecutive year For Corporate Governance 88 CAC40 Governance index – “Top 10 performers” FTSE4Good 4.7 Top decile rank Ra
Slide 19: Supervisory Board structure promoting oversight and accountability
Supervisory Board structure promoting oversight and accountability and unanimously supporting RESET plan Open & Refreshed Independent RESET plan 100% independent Began assessment of all 4.2 years average tenure vs. 5.5 years CAC40 average(1) Complete separation of powers vs. 68% relevant options in
Slide 20: Supervisory Board composition has appropriate skillset and experience
Supervisory Board composition has appropriate skillset and experience to oversee strategy and challenge management Real Estate & Asset Management Public Company Executive Finance & Investor Perspective 3 with Primary Expertise All with Public Company Executive 4 with Primary Expertise 4 with Additio
Slide 21: Conclusion
CONCLUSION WwW UNIBAIL-RODAMCO-WESTFIELD
Slide 22: RESET is the only credible response to address URW's challenges
RESET is the only credible response to address URW’s challenges and protect the long-term interest of shareholders RESET: REFOCUS: Strengthens URW’s capital structure today Fails to address URW’s immediate capital structure strengthening need Secures URW’s access to capital markets Risks leading to
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