Slide 1: 2015 Annual Results: Building up French metropolises
2015 ANNUAL RESULTS Building up French metropolises 2015 ANNUAL RESULTS
Slide 2: Contents
CONTENTS INTRODUCTION / 3 BUILDING UP FRENCH METROPOLISES / 11 RETAIL REIT / 17 PROPERTY DEVELOPMENT / 27 FINANCIAL RESULTS / 45 OUTLOOK / 58 APPENDICES / 64 2015 2015 ANNUAL ANNUAL RESULTS RESULTS 2
Slide 3: Introduction
INTRODUCTION 2015 2015 ANNUAL ANNUAL RESULTS RESULTS 3
Slide 4: Key Highlights
INTRODUCTION Key Highlights PROPERTY STRATEGY RETAIL REIT RESULTS DEVELOPMENT Refocusing Change Two-fold increase Robust on real estate in dimension to come growth Disposal Potential to increase FFO: €161 M gross rents from €200 M (+28%) (4) €2.0 Bn to €400 M (2) (at 100%) Acquisition in take-ups (+
Slide 5: Acquisition of Pitch Promotion
INTRODUCTION Acquisition of Pitch Promotion PITCH PROMOTION AGGREGATE PRO FORMA TAKE-UPS €347 million in take-ups 2,769 Residential: 1,021 units in share 2,327 M€ 2,450 1,980 M€ Office property: €111 million (+49%) Enterprise value: €180 M 7x EBIT Partial payment in Altarea shares (1) 347 M€ Growth
Slide 6: An innovation spirit
INTRODUCTION An innovation spirit ALTAFUTURE INNOVATION CULTURE A dedicated and multidisciplinary team Commitment of top managers 7 persons Learning Expedition Cycle (Executive Committee, Retail, Office, Residential) An Open Innovation approach Mobilization of the staff with incubators Internal coll
Slide 7: Innovation at the heart of business transformation
INTRODUCTION Innovation at the heart of business transformation DIGITAL PILOT PROJECTS Marketing Use of the latest immersive technologies Comfort & well-being WELL certification: Richelieu - Paris 2 Pont d’Issy – Issy-les-Moulineaux Tours Pascal – La Défense OCULUS RIFT 3D MODELING Conception & Cons
Slide 8: Virtuous and committed model
INTRODUCTION Virtuous and committed model OUTPERFORM GO FURTHER IN CSR RECOGNIZED CSR REGULATION PERFORMANCE APPROACH Energy consumption: -33,5% (1) 1st retail REIT 100% certified (2) 2020 Objective / - 40% 100% of the portfolio certified 99% for transparency Breeam In-Use A- for performance Objecti
Slide 9: A different spirit: 100% employee shareholders
INTRODUCTION A different spirit: 100% employee shareholders GROUP’S EMPLOYEES A UNIQUE COMBINATION SHARING VALUE 1000 employees Attract the best Regular distributions of shares Macron’s law benefits 200 hires Keep the best planned in 2016 0.8% to 1% of capital distributed per year for the next three
Slide 10: Key Highlights: FFO and NAV
INTRODUCTION Key Highlights FFO (1) (in Group share) NAV Recurring result (FFO) reported (2) Creation of real-estate value (4) €161.2 million (+27.8%) +€293 million FFO / share (3) NAV / share (5) €12.95 (+ 23.8%) €137.3 (+ 5.8%) (1) Fund from operations: Net profit excluding changes in value, calcu
Slide 11: Building up French metropolises
BUILDING UP FRENCH METROPOLISES 2015 2015 ANNUAL ANNUAL RESULTS RESULTS 11
Slide 12: Territories with exceptional fundamentals, a unique operating method
BUILDING UP FRENCH METROPOLISES Territories with exceptional fundamentals, a unique operating method FRENCH METROPOLISES(1) THE GROUP'S ORIGINAL APPROACH 9.5% of territory Focus on 11 targets 36% of the population based on demographic criteria Concentration 71% of GDP (targeted territories: +740,000
Slide 13: Unrivaled multi-product expertise
BUILDING UP FRENCH METROPOLISES Unrivaled multi-product expertise Surface area PIPELINE (1) (2) Potential value (3) Shopping centers 553,100 m² €3.6 Bn Convenience stores 100,300 m² €0.3 Bn Offices 531,000 m² €2.2 Bn Residential units 1,503,000 m² €5.9 Bn TOTAL 2.7 million m² €12.0 Bn Reinforcement
Slide 14: Retail, the entry key to French metropolis
BUILDING UP FRENCH METROPOLISES Retail, the entry key to French metropolis CONVENIENCE STORES (1) High expectations from local authorities A product that is generally neglected by developers Untapped source of value Massy Place du Grand Ouest Altarea Cogedim: A unique position 60 projects // 100,300
Slide 15: Mixed-used urban projects
BUILDING UP FRENCH METROPOLISES Mixed-used urban projects MAJOR MIXED-USE PROJECTS WON IN 2015 m² non Mixed-use projects m² # units residential Bezons City center 66,000 700 18,700 Global projects Capacity to build cities within cities Strasbourg Fischer 33,000 430 5,000 Hospices Civils Lyon 16,000
Slide 16: Focus: creating cities within cities
BUILDING UP FRENCH METROPOLISES Focus: creating cities within cities BEZONS – CITY CENTER New 66,000 m² neighbourhood 700 subsidized and social rental housing 20,000 m² retail space 17,000 m² green space 600 parking spots 2015 ANNUAL RESULTS 16
Slide 17: Retail REIT
RETAIL REIT 2015 2015 ANNUAL ANNUAL RESULTS RESULTS 17
Slide 18: Our vision about shopping centers in France
DEVELOPMENT: THE LEADING RETAIL REIT IN FRANCE Our vision about shopping centers in France (excluding convenience stores) LOCATION, SIZE PRODUCT French metropolises Large regional centers High average retail density, but very different Cap 3000 if we geographically target development Travel retail G
Slide 19: Good performance on a refocused portfolio
DEVELOPMENT: THE LEADING RETAIL REIT IN FRANCE Good performance on a refocused portfolio GOOD PERFORMANCE OF KEY A REFOCUSED PORTFOLIO (€Bn) OPERATIONAL INDICATORS Tenants’ revenue +1.5% Change in net rents +2.6% (+1.3% like-for-like) Portfolio of €3,8 Bn Occupancy cost ratio 9.9% €201 M in rent (1)
Slide 20: Asset management: 2015 highlights
DEVELOPMENT: THE LEADING RETAIL REIT IN FRANCE Asset management: 2015 highlights ACQUISITION DISPOSALS EXTENSIONS Marques Avenue® A 13 Qwartz Italy portfolio 1st wooden shopping center Successful launch (1) Four small-sized assets 100% controlled (2) €122 million €400 million Jas de Bouffan, Aix-en-
Slide 21: Connected retail: Qwartz & La Digital Factory
DEVELOPMENT: THE LEADING RETAIL REIT IN FRANCE Connected retail: Qwartz & La Digital Factory A SUCCESFUL OPENING YEAR 7 million visitors (1) 280 M€ tenants’ revenue 2015 : +10% footfall +9% Merchant revenue (2) Digital Factory (3) : 220,000 customer journeys retraced / month Targeted CRM Program 70%
Slide 22: L'Avenue83, Toulon-La Valette
DEVELOPMENT: THE LEADING RETAIL REIT IN FRANCE L’Avenue83, Toulon-La Valette L’AVENUE83 , TOULON-LA VALETTE : OPENING ON APRIL 13, 2016 51,000 m² shopping and leisure center 12 medium-sized outlets (Primark, Nike Store etc.) One Pathé movie theater with 16 screens 60 shops and kiosks Included in a m
Slide 23: Paris-Austerlitz Train Station
DEVELOPMENT: THE LEADING RETAIL REIT IN FRANCE Paris-Austerlitz Train Station 4TH PARIS STATION DEVELOPED BY THE GROUP Shopping center in a new neighborhood under completion A destination site with 30,000 m² of retail space open throughout the week A green and relaxing link in the extension of the J
Slide 24: Promenade de Flandres, Roncq
DEVELOPMENT: THE LEADING RETAIL REIT IN FRANCE Promenade de Flandres, Roncq (Lille metropolitan area) CONSTRUCTION LAUNCHED BEGINNING OF 2016 Retail park of 60,000 m² Reinforcement of a leading retail hub of the Lille metropolitan area 2km from Belgium More than 60% pre-let Construction launched beg
Slide 25: The main untapped source of value for the Group
DEVELOPMENT: THE LEADING RETAIL REIT IN FRANCE The main untapped source of value for the Group THE 1ST PIPELINE FOR FRANCE SHOPPING CENTERS Groupe share 100% Surface areas 435,000 m² 553,000 m² Cost price €1.9 Bn €2.5 Bn Potential rents (1) €152 M €199 M Net yield 7.8% 7.8% Gare Montparnasse (1) Pro
Slide 26: Potential to double the REIT portfolio
DEVELOPMENT: THE LEADING RETAIL REIT IN FRANCE Potential to double the REIT portfolio DOUBLING IN SIZE AS TARGET POTENTIAL VALUE CREATION FROM €200 M (1) TO €400 M (2) €600 M GROUP SHARE(3) Boulevard Macdonald Cap 3000 (1) Current gross rents of property portfolio assets. €152 M in Group share. (2)
Slide 27: Property development
PROPERTY DEVELOPMENT 2015 2015 ANNUAL ANNUAL RESULTS RESULTS 27
Slide 28: Very sharp increase in results
PROPERTY DEVELOPMENT Very sharp increase in results OPERATING INCOME REVENUES AND MARGIN (1) 8.2% 1,012 M€ +23% 7.1% 82.7 M€ 822 M€ +41% 58.5 M€ 2014 2015 Residential Office property 2014 2015 Residential Office property (1) This margin includes all of the Group's operating costs billed to the Devel
Slide 29: Residential: Our values
RESIDENTIAL Our values PRODUCTS & COGEDIM STORE MARKET CUSTOMER SERVICES Bercy Village Proximity to A deep market public transport Incorporate the multiplicity of Shortage situation customer profiles and under production The consistency of our product lines with the Offer rental management qualitati
Slide 30: Residential: Strengthen the brand value
RESIDENTIAL Strengthen the brand value 2015 ANNUAL RESULTS 30
Slide 31: Paving the way of a growth cycle
RESIDENTIAL Paving the way of a growth cycle! 2015 COMMERCIAL SUPPLY RESERVATIONS REVENUES OPERATING LAUNCHES INCOME €52.3 M +25% €883 M ex. VAT €1.4 Bn ex. VAT 6,011 units +17% €1.6 Bn inc. VAT +33% 6,800 units €2.9 Bn inc. 88 projects VAT 13,400 units +53% +38% 2015 ANNUAL RESULTS 31
Slide 32: Growth sales: +33%, twice the domestic market
RESIDENTIAL Growth sales (1): +33% (i.e. twice the domestic market (2)) STRONG DEMAND FOR RESIDENTIAL SALES (2) COGEDIM PRODUCTS +75% +28% €1.42 Bn 12,0% €1.10 Bn 21,8% Individual Entry level / Mid-range +23% investors 66,2% Individual High-end investors (3) Others +39% Institutional Institutional i
Slide 33: 2007-2015: Change in scale
RESIDENTIAL 2007-2015: Change in scale RESIDENTIAL UNITS (€ M) AND GROWTH(1) +4% +1% 2 202 2 285 -28% +112% 1 948 1 963 1 675 1 417 -7% 1 212 901 839 668 2007 2015 2007 2015 2007 2015 2007 2015 2007 2015 Nexity Bouygues Altarea Cogedim KB Icade (1) Excluding Pitch Promotion (which sold 1,021 units f
Slide 34: Residential strategy: targeting buoyant markets
RESIDENTIAL Strategy TARGETING BUOYANT MARKETS Core market Entry-level and midscale Strong impact of interest-free scheme and the Pinel Act High-end Sevran – multi-produits, multi-partenariats Serviced residences Soléos, Romainville Cogedim retiree residences Club ®… Institutional investors Specific
Slide 35: Development strategy: targeting new territories
RESIDENTIAL Development strategy TARGETING NEW TERRITORIES ILE-DE-FRANCE COVERAGE (1) Val-d’Oise 10th Grand Paris Seine-Saint-Denis Yvelines 2nd and 3rd rings Hauts-de- Paris 3rd 9th Seine Seine-et-Marne 1st Not present 6th Essonne Lyon Val-de-Marne 2nd 2nd Lyon-based agency 1st Atlantic coast and G
Slide 36: Focus: Exaltis, Paris Porte d'Auteuil
RESIDENTIAL Focus EXALTIS, PARIS Porte d’Auteuil High-end air-conditioned apartments Outstanding views and terraces (from 12,000 to €20,000/m², excluding parking space) Designed by renowned professionals Finn Geipel and Anne Demians for the architecture Sara Lavoine for interior decoration 200 units
Slide 37: Focus: 21st District, Pantin
RESIDENTIAL Focus 21ST DISTRICT, PANTIN First project combining New & Refurbishment (Histoire & Patrimoine) Refurbishment of the former Marchal plant Remarkable volumes, double ceiling height lofts (€4,700/m² excluding parking space) Premium quality mixed-used project 130 rent-to-own units including
Slide 38: "New generation" projects
RESIDENTIAL “New generation” projects INSPIRATION PROGRAM – “Quartier de la Création” in Nantes • Ceiling height of 2.70 m • Private rooftop sun rooms New uses • Residential units for shared living • Mutability of residential units • Shared bicycles, repair workshops & storage areas Shared • Fitness
Slide 39: Development - Offices
DEVELOPMENT - OFFICES 2015 2015 ANNUAL ANNUAL RESULTS RESULTS 39
Slide 40: Offices: Our values
OFFICES Our values NEXT GENERATION MARKET LOCATIONS OFFICES Assets requiring Outward looking Sharp increase in the rental reconstruction often have the market best locations Iconic architecture (2.2 million of m² leased in 2015) Flexibility Abundant liquidity City of Paris, West Crescent & core loca
Slide 41: Offices: An outstanding year
OFFICES An outstanding year! COMMERCIAL SUCESS STORIES OPERATIONAL SUCCESS STORIES Sales: €567 M for 11 transactions, including the Austerlitz disposal Kosmo (22,000 m²), Neuilly-sur-Seine Pont d’Issy (60,000 m²), Issy-les-Moulineaux (15,000 m²) Final building 2 projects 82,000 m² permit Purchase of
Slide 42: Outstanding growth, driven by Altafund
OFFICES Outstanding growth, driven by Altafund OPERATING INCOME AND RESULT ALTAFUND Development margin (1) €18.2 M Discretionary fund with €650 million in equity (Group share 18/30%) Service fees (2) €20.2 M 1 project delivered (Boulevard Raspail) Investor capital gain (3) €8.5 M 1 project sold (Aus
Slide 43: Focus: creative restructuring
OFFICES Focus: creative restructuring PASCAL TOWERS, LA DEFENSE (92) Extensive reconstruction of the Pascal Towers (9,000 m²) on behalf of Altafund and Goldman Sachs Selection of an internationally-renowned architect, Dominique Perrault Creation of new surface areas Capacity increased to receive 5,0
Slide 44: Focus: Next generation office
OFFICES Focus: Next generation office KOSMO – NEUILLY-SUR-SEINE Outstanding location 190-192 avenue Charles-de-Gaulle in Neuilly-sur-Seine In front of La Défense Exemplary renovation A campus way of life 25,000 m² of offices 3,000 m² of terraces and gardens 400 parking spots Business center and seve
Slide 45: Financial results
FINANCIAL RESULTS 2015 2015 ANNUAL ANNUAL RESULTS RESULTS 45
Slide 46: Growth in all business lines
2015 FINANCIAL RESULTS Growth in all business lines LONG TERM REPROFILING OF SHARPLY INCREASING RECORD YEAR BALANCE SHEET FINANCIAL INDICATORS Historic year for retail FFO (2) : €161,2 M (+28%) €2,2 billion of funding LTV (1) : 44,5% NAV: +€293 million Excellent long-term of real estate visibility v
Slide 47: Property portfolio value: increase driven by retail
PROPERTY PORTFOLIO VALUE Increase driven by retail CHANGE IN VALUE, IN € M Capital employed: +€787 M 142 €5 489 M 248 166 Development 380 €4 702 M (148) Capex Like-for-like change « at cost » (2) Retail (1) Disposals Retail acquisitions Retail 81% and openings 2014 2015 Development 19% (1) Including
Slide 48: Debt: High retail investments
DEBT High retail investments CHANGE IN DEBT, IN € M +€500 M 110 26 2,441 90 280 Others Swaps WCR Increased LTV : 125 45 1,941 (120) 275 (2) development 1,771 (161) 44,5% Cash loss Capex (1) Disposals Dividend RDC FFO Acquisition (vs. 37,7% in 2014) Qwartz 2014 2015 (1) Including €190 M of Capex on C
Slide 49: Long-term re-profiling of debt
LONG-TERM RE-PROFILING OF DEBT An exceptional year EXTENSION DEBT’S DURATION EXTENSION HEDGE’S DURATION Hedged notional (in €Bn) 2,5 €2.2 Bn in financing/refinancing set up (1) 2,0 including mortgage: €1.5 Bn (21 assets) 1,5 including corporate: €0.7 Bn Hedged notional in 1,0 2015 0,5 Hedged notiona
Slide 50: Debt structure: Long-term visibility
DEBT STRUCTURE Long-term visibility MORTGAGES BELOW AVERAGE LONG-TERM SECURED DEBT Development Corporate 9% banking 22% Long duration 49% 20% Mortgage Markets Strong debt coverage Low costs Consolidated net debt: €2.4 Bn Duration: 6.0 years (1) Including commissions and CNU, i.e., 1.85% on the drawn
Slide 51: Reported FFO
REPORTED FFO Sharp increase: +28% (+11% like-for-like) FFO (1) (IN GROUP SHARE) (€M) Development €70.5 M +59.1% +28% €161.2 M 145.7 15,5 Commercial landowner €113.9 M +1.7% €126.1 M 19,6 Real estate activities Services and Commercial Disposal (€19.7) M x 1.8 Rue du Development Commerce +11% Others (
Slide 52: FFO Development
FFO DEVELOPMENT Sharp increase FFO DEVELOPMENT, ATTRIBUTABLE TO GROUP SHAREHOLDERS (€M) +59% +2.0 €70.5 M 2015, a year of strong +12.6 Other FFO (1) recovery €44.3 M +11.6 Operational FFO Office property Very strong outlook for Operational FFO 2016 Residential Residential backlog: €1.7 Bn Numerous o
Slide 53: FFO Commercial Landowner
FFO COMMERCIAL LANDOWNER Portfolio rotation FFO COMMERCIAL LANDOWNER, ATTRIBUTABLE TO GROUP SHAREHOLDERS (€M) +1.8% 1.6 €113.9 M €112.0 M (3.7) Like-for-like 12.5 NC interests (8.5) change and Others (1) High portfolio rotation France Disposals Qwartz in 2015 acquisition 2014 2015 (1) Reconstruction
Slide 54: FFO Services and Retail Development
FFO SERVICES AND RETAIL DEVELOPMENT Investments essentially geared towards the pipeline (1) FFO SERVICES AND RETAIL (M€) €(19,7) M (2,7) Other (4,7) unrecognized €(11,2) M (1,1) Increase of expenses due to development Projects under costs projects under development Personnel costs development (2) Am
Slide 55: NAV: Creation of real estate value
NAV Creation of real estate value: +€293 million GOING-CONCERN NAV (€M) +18% €1,719 M 161 FFO 2015 €1,624 M (126) 293 Dividend 84 Value Shopping Centers (1) (72) €1 373 M Rue du Creation of Commerce real estate value 112 Value Development (2) and Semmaris (41) Value Financial instruments 2014 2015 (
Slide 56: KPIs per share
KPIS PER SHARE Slight dilution (full year effect) FFO / SHARE (1) NAV / SHARE €12.95 /share (+23.8%) €137.3 /share (+5.8%) Including real estate value €23.5 /share Including real estate results €13.99 /share creation Including dividend €-10.0 /share Including dilution (2) €–1.04 /share Including Rue
Slide 57: 2016 Dividend (for 2015)
2016 DIVIDEND (FOR 2015) Up +10% 2016 DIVIDEND (for the 2015 fiscal year): €11 / share 2016 dividend: €11.00 / share Subject to the AGM approval on April 15, 2016 Taxation €10.55 of reimbursement of contributions €0.45 of revenue distribution (of which €0.25 of tax-exempt income) Option of conversio
Slide 58: Outlook
OUTLOOK 2015 2015 ANNUAL ANNUAL RESULTS RESULTS 58
Slide 59: Outlook: economic environment and our strategy
OUTLOOK ECONOMIC ENVIRONMENT OUR STRATEGY Accelerate in property development with a reinforced risk control policy A fast and efficient marketing strategy Low interest rates Develop on prime locations Zero inflation Continue disposals Macro-economic and political risks Long-term financing at a low a
Slide 60: Targets: the leader of complex urban projects
OUTLOOK TARGETS (1) The leader of complex urban projects 10,000 residential units ([ ≥ €500 M of annual orders Doubling the REIT business (€600 M of value creation in share) FFO: 50% Development and 50% REIT REIT: > 80 to 85% of the balance sheet (1) In a constant political and economic environment.
Slide 61: 2016 guidance & Mid term outlook
OUTLOOK 2016 guidance & Mid term outlook 2016 GUIDANCE MID TERM OUTLOOK FFO Group share: +15 to +20% FFO Group share: +5 to +10% /year Good visibility Growth drivers Development Backlog Until 2018: development Retail Deliveries (Toulon / Macdonald) > 2018: retail REIT (pipeline) Secured debt cost 20
Slide 62: Financial policy
OUTLOOK Financial policy FINANCE THE GROWTH OVER THE LONG TERM LTV target ~40% 2017 and 2018 dividend: minimum €11/share Dividend in shares in 2017-2018 or Capital increase from €200 M to €300 M 2015 ANNUAL RESULTS 62
Slide 63: Altarea Cogedim: Unique growth potential
OUTLOOK ALTAREA COGEDIM Unique growth potential over the long term Innovation and risk managment Value creation and sustainable development 2015 ANNUAL RESULTS 63
Slide 64: Appendices
APPENDICES 2015 2015 ANNUAL ANNUAL RESULTS RESULTS 64
Slide 65: Analytical statement of income
ANALYTICAL STATEMENT OF INCOME 12/31/2015 12/31/2014 (1) Funds From Changes in value, Funds From Changes in value, In €M Operations estimated expenses TOTAL Operations estimated expenses TOTAL (FFO) and transaction costs (FFO) and transaction costs Shopping centers 195.9 4% 10.7 206.6 188.6 3.6 192.
Slide 66: Balance sheet (1/2)
BALANCE SHEET (1/2) In €M 12/31/2015 12/31/2014 NON-CURRENT ASSETS 4,498.0 3,940.5 Intangible assets 202.1 244.7 o/w Goodwill 128.7 128.7 o/w Brands 66.6 96.8 o/w Other intangible assets 6.7 19.2 Property, plant and equipment 6.2 10.6 Investment properties 3,759.6 3,163.6 o/w Investment properties i
Slide 67: Balance sheet (2/2)
BALANCE SHEET (2/2) In €M 12/31/2015 12/31/2014 EQUITY 2,250.9 2,169.9 Equity attributable to Altarea SCA shareholders 1 230.3 1,250.1 Share capital 191.2 191.2 Other paid-in capital 396.6 518.7 Reserves 534.0 425.9 Income associated with Altarea SCA shareholders 108.4 114.3 Equity attributable to n
Slide 68: Net asset value
NET ASSET VALUE GROUP NAV 12/31/2015 12/31/2014 In €M Change €/action Ch./sh. In €M €/action Consolidated equity, Group share 1,230.3 98.3 1,249.5 99.9 Other unrealized capital gains 381.4 276.8 Restatement of financial instruments 20.8 87.8 Deferred tax on the balance sheet for non-SIIC assets (int