Slide 1: 2016 Half-Year Results
2016 HALF-YEAR RESULTS Building up French metropolises
Slide 2: Contents
CONTENTS INTRODUCTION / 3 DEVELOPMENT DIVISION / 8 RETAIL REIT / 20 FINANCIAL RESULTS / 26 OUTLOOK / 35 APPENDICES / 37 RESULTATS 2016 HALF-YEAR SEMESTRIELS RESULTS 2016 2
Slide 3: Introduction
INTRODUCTION 2016 HALF-YEAR RESULTS 3
Slide 4: Introduction: results and strengthened financial structure
INTRODUCTION Reaffirmation of the Group’s goals announced at the time of the capital increase Results : Significant growth Strengthened financial structure A new dimension in Development Strong momentum in all the Group’s business lines 2016 HALF-YEAR RESULTS 4
Slide 5: First-half 2016 – Financial results
INTRODUCTION First-half 2016 – Financial results STRONG RISE IN FFO REINFORCEMENT OF BALANCE SHEET Recurring income – FFO (1): €369m in equity raised €92.0m (+15.3%) in the first half (2) FFO/share Loan-to-value (LTV) ratio €6.96 (+10.8%) reduced to 40.8% (1) Net profit excluding changes in value, c
Slide 6: Positive operational dynamic across all business lines
INTRODUCTION First-half 2016 – Positive operational dynamic across all business lines PROPERTY RESIDENTIAL OFFICES RETAIL REIT DEVELOPMENT Market share gains The Group’s model is ramping Developments drive growth A new dimension Visuel Issy Visuel Auteuil Ilot des mariniers Visuel Avenue 83 New orde
Slide 7: Altarea Cogedim, a responsible and innovative company
INTRODUCTION Altarea Cogedim, a responsible and innovative company ALTAFUTURE, LAB DEDICATED TO RECOGNIZED CSR APPROACH INNOVATION A dedicated team 99% for transparency A- for performance An Open Innovation approach with Immowell-lab et Paris&Co incubators An internal collaborative platform Retail R
Slide 8: Development
DEVELOPMENT 2016 HALF-YEAR RESULTS 8
Slide 9: Two major mixed-use urban projects won in H1
DEVELOPMENT Two major mixed-use urban projects won in H1 ISSY CŒUR DE VILLE BORDEAUX BELVEDERE A mixed-use project of 140,000 m² at the heart of the Bordeaux A new eco neighbourhood of 100,000 m² metropolitan area ISSY CŒUR DE VILLE BORDEAUX BELVEDERE Un nouvel éco quartier de 100 000 m² Opération m
Slide 10: Development (residential and offices): a new dimension
DEVELOPMENT (residential and offices) A new dimension NEW ORDERS: €1,204m (+38%) RESIDENTIAL OVERPERFORMANCE AND MARGIN EVOLUTION (EBITDA/REVENUE) +34.9%(1) €1,204m +4.3% €243m €874m 7.7% €662m 6.6% €961m +50% 6.4% H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 New orders (in €m) (1) Compound annual growth
Slide 11: Development – Residential
DEVELOPMENT – RESIDENTIAL 2016 HALF-YEAR RESULTS 11
Slide 12: Market share gains: 4,000 units sold
RESIDENTIAL DEVELOPMENT Market share gains: 4,000 units sold (+47%) / €961m (+50%) INTERNAL GROWTH EXTERNAL GROWTH 3 new regional locations (1) Expanded presence in the most dynamic French metropolitan Completion of the acquisition of Pitch Promotion areas Complementary approaches and product ranges
Slide 13: Growth in sales: +50% in value, +47% in volume
RESIDENTIAL DEVELOPMENT Growth in sales: +50% in value terms, +47% in volume terms STRONG RISE IN RETAIL SALES SUCCESS OF ENTRY-LEVEL PRODUCTS Other (1) +47% 4,000 units 6% High-end 2,717 units +74% 24% Entry-level and mid-range +7% 70% H1 2015 H1 2016 Institutional investors Individual reservations
Slide 14: Acceleration of growth
RESIDENTIAL DEVELOPMENT Acceleration of growth H1 2016 COMMERCIAL SUPPLY RESERVATIONS REVENUE OPERATING LAUNCHES INCOME €33.3m +36% €506m excl. taxes €961m incl. taxes 4,000 units +12% €1.3bn incl. taxes 5,600 lots +50% 73 projects €2.4bn incl. taxes 10,400 units +73% +63% 2016 HALF-YEAR RESULTS 14
Slide 15: Residential development outlook
RESIDENTIAL DEVELOPMENT Outlook RESIDENTIAL BACKLOG(1) OFFERING(2) AND PORTFOLIO High-end and serviced residences +26% €2,187m €1,739m 36% 64% Entry-level and mid-range €8.0bn H1 2015 H1 2016 33,600 units (+27%) (1) The backlog comprises revenues (excluding taxes) from notarised sales to be recognis
Slide 16: Development – Offices
DEVELOPMENT – OFFICES 2016 HALF-YEAR RESULTS 16
Slide 17: Office development: strong momentum
OFFICE DEVELOPMENT Strong momentum in a steadily growing market NEW ORDERS: €243m (+4.3%) DPM (2) 32% (€77.5m) 47% (€113.0m) PDC(1) 22% (€52.5m) Off-plan sale 9 projects 130,200 m2 Ilot des Mariniers – Paris 14th (1) Property Development Contracts. (2) Delegated Project Management. 2016 HALF-YEAR RE
Slide 18: Strong contribution to results in H1 2016
OFFICE DEVELOPMENT Strong contribution to results in the first half of 2016 and in upcoming periods OPERATING NEW ORDERS REVENUE INCOME €13.7m +61% €106m +100% €243m +4% Sanofi – Lyon 2016 HALF-YEAR RESULTS 18
Slide 19: Office development outlook
OFFICE DEVELOPMENT Outlook PIPELINE INCLUDING MAJOR MIXED-USE PROGRAMS UNDERWAY PROJECTS Issy – Cœur de ville Creation of a 100,000 m² 49 projects mixed-use neighbourhood, including 40,000 m² of office space €2,717m(1) Bordeaux – Belvédère Creation of a new, mixed-use district, providing a total of
Slide 20: Retail REIT
RETAIL REIT 2016 HALF-YEAR RESULTS 20
Slide 21: L'Avenue in Toulon-La Valette: a successful launch
RETAIL REIT L'Avenue 83 – Toulon-La Valette L'AVENUE 83 IN TOULON-LA VALETTE: A SUCCESSFUL LAUNCH 51,000 m² shopping and leisure centre 12 medium-sized outlets (Primark, Nike Store, etc.) One Pathé movie theatre with 15 screens 70 shops and kiosks 100% leased A great start Drawing more than 1.5 mill
Slide 22: Portfolio focused on prime assets
RETAIL REIT Portfolio focused on prime assets AVERAGE VALUE (in €m per asset) PORTFOLIO COMPOSITION(1) AND NUMBER OF ASSETS Convenience stores/ Inner- city shopping centers +7.8%(2) 104 98 13% 89 80 Large retail 75 parks 21% 66% Regional shopping 41 44 42 39 40 centers €4.2bn 2012 2013 2014 2015 S1
Slide 23: Excellent leasing activity
RETAIL REIT Asset leasing and development activities 183 LEASES SIGNED IN THE FIRST EXCELLENT LEASING ACTIVITY HALF Constant improvements in retail offerings at shopping centres Asset portfolio 104 leases €11.7m Uplift +11% Carré de soie Bercy Village Les Tanneurs (Villeurbanne) (Paris) (Lille) Pipe
Slide 24: Operational performance of the portfolio
RETAIL REIT Operational performance of the portfolio KEY PERFORMANCE INDICATORS FOR SHOPPING CENTRES Tenants’ revenue(1) +2.2% Change in net rental income +6.8% (+1.6% on a like-for-like basis) Occupancy cost ratio(2) 9.4% Bad debt ratio(3) 1.8% Financial vacancy rate(4) 3.1% Bercy Village (5) (1) F
Slide 25: Outlook: doubling of rental income upon completion
RETAIL REIT Outlook: doubling of rental income upon completion(1) PIPELINE UPCOMING DELIVERIES Number of programs 17 Le Parks (boulevard Macdonald, Paris) Delivery: end-2016 Surface area (1) 507,500 m2 90% pre-let Cost price(1) €2,502m Promenade de Flandres Potential gross rental €187.7m (Roncq) inc
Slide 26: Financial Results
FINANCIAL RESULTS 2016 HALF-YEAR RESULTS 26
Slide 27: Key highlights and results
FINANCIAL RESULTS Key highlights and results SIGNIFICANT GROWTH DRIVEN BY DEVELOPMENT STRENGTHENING OF THE FINANCIAL STRUCTURE STRONG VALUE CREATION 2016 HALF-YEAR RESULTS 27
Slide 28: Significant growth, driven by development: FFO €92.0m
FINANCIAL RESULTS Significant growth, driven by development: €92.0m (+15.3%) RECURRING INCOME (FFO)(1) (GROUP SHARE) (€M) Retail REIT €59.3m +4.4% +15.3% +12.2 -2.5 92.0 Development €38.3m +46.5% Other (2) 79.8 +2.5 Other (2) €(5.5)m +74.4% Development Retail REIT Consolidated FFO, Group share €92.0
Slide 29: Robust growth, driven by development
FINANCIAL RESULTS Robust growth, driven by development : €92.0m (+15.3%) Other In €m Revenue 106.1 +10% 506.0 +12% 106.1 x 2,0 718.2 +20% Operating income 93.7 +8% 33.3 +36% 13.7 +61% (5.5) 135.2 +13% Net borrowing costs (14.2) (3.5) (1.4) - (19.1) Corporate income tax - (1.6) (0.7) (2.3) Minority s
Slide 30: Reinforcement of equity
FINANCIAL STRUCTURE Reinforcement of equity EQUITY RAISED: €369m IMPACTS Reserved capital increase (acquisition of Pitch Promotion) Loan-to-value (LTV) ratio reduced to 40.8% vs. 44.5% at 31/12/15 €32m(1) Payment of dividend in shares Available cash and cash equivalents €127m(2) €835m at 30/06/16(3)
Slide 31: Continued optimisation of resources
FINANCIAL STRUCTURE Continued optimisation of resources DEBT HEDGES €928m in financing signed New resources: €339m Reduced exposure to Refinancing: €589m negative impact of Euribor by 2018(1) Duration of arranged financing: 6.1 years Drop in the average rate hedged(2) (entry into new swaps) Average
Slide 32: Stability of debt maintained
FINANCIAL STRUCTURE Stability of debt maintained CHANGE IN NET DEBT, IN €M DIVERSIFIED RESOURCES +33 -264 (2) +141 Development WCR +198 Development 8% Corporate Retail Capex -92 25% bank debt Capital -18 Mortgage 2,442 increase(2) 2,441 Acquisition FFO Other 39% of Pitch(1) 28% Markets Net debt 30/0
Slide 33: Strong value creation of Group assets
VALUE OF GROUP ASSETS Strong value creation: +€492m (+9.0%) CHANGE IN VALUE, IN €M +492 M€ 225 15 5,981 212 40 Other 5,489 Development Acquisition of Pitch Change in Retail 31/12/15 30/06/16 2016 HALF-YEAR RESULTS 33
Slide 34: NAV: growth in value of €13.2/share
NAV(1): GROWTH IN VALUE OF €13.2/SHARE CHANGE IN NAV(1) OVER THE FIRST HALF +0.8 +13.2 -6.9 +3.2 Growth in value of +3.0 Other(3) +6.1 Equity(2) €143.6/s -11.0 +€13.2/share €137.3/s Asset Financial of which €3.2 due to capital increases portfolio instruments FFO Growth €132.6/s in value Dividend Fin
Slide 35: Outlook
OUTLOOK 2016 HALF-YEAR RESULTS 35
Slide 36: A reaffirmed growth momentum
OUTLOOK A reaffirmed growth momentum 2016 2017 MID-TERM FFO target of €13.5 per FFO target of €14.5 per 10,000 residential units share share €400m rental income(1) €11 dividend €11 dividend (1) At 100%. 2016 HALF-YEAR RESULTS 36
Slide 37: Appendices
APPENDICES 2016 HALF-YEAR RESULTS 37
Slide 38: Detailed income statement
DETAILED INCOME STATEMENT 30/06/2016 30/06/2015 Restated* Funds From Changes in value, Funds from Changes in value, In €m Operations Calculated charges and TOTAL Operations Calculated charges and TOTAL (FFO) transaction costs (FFO) transaction costs Shopping centres 106.1 9.6% 5.5 111.6 96.8 2.3 99.
Slide 39: Detailed balance sheet (1/2)
DETAILED BALANCE SHEET (1/2) (in €M) 30/06/2016 31/12/2015 NON-CURRENT ASSETS 4,790.0 4,498.0 Intangible assets 261.7 202.1 o/w goodwill 156.1 128.7 o/w brands 89.9 66.6 o/w client relations 8.3 - o/w other intangible assets 7.4 6.7 Property, plant and equipment 14.0 6.2 Investment properties 3,909.
Slide 40: Detailed balance sheet (2/2)
DETAILED BALANCE SHEET (2/2) (in €M) 30/06/2016 31/12/2015 EQUITY 2,552.2 2,250.9 Equity attributable to Altarea SCA shareholders 1,462.4 1,230.3 Capital 229.7 191.2 Other paid-in capital 588.3 396.6 Reserves 635.5 534.0 Income associated with Altarea SCA shareholders 8.9 108.4 Equity attributable t
Slide 41: Net asset value
NET ASSET VALUE GROUP NAV 30/06/2016 30/06/2015 Change In €m Change €/share(d) /share In €m €/share(d) Consolidated equity, Group share(a) 1,459.0 97.1 1,180.0 94.3 Other unrealised capital gains 406.3 281.8 Restatement of financial instruments 113.4 22.2 Deferred tax on the balance sheet for non-SI