Altarea Sca · EURONEXT:ALTA
Altarea Sca — Altarea Cogedim — FY2018 Earnings Presentation
46 slides from Altarea Sca's earnings presentation, February 2019
Slide 1: 2018 Annual Results
Leading Leading Property Property Developer Developer in the in regions France 2018 2018 ANNUAL ANNUAL RESULTS RESULTS
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared for information purposes only, and is intended to supplement other information published by Altarea Cogedim, which readers are encouraged to refer to. It is not, and must not be interpreted as, a solicitation, recommendation or offer to purchase, sell,
Slide 3: Urban entrepreneur, 2018 Performance, Outlook and Strategy
01/ Urban entrepreneur 02/ 2018 Performance 03/ Outlook and Strategy Appendices and glossary 3 Joia Meridia, (Nice) 2018 ANNUAL RESULTS
Slide 4: 01/ Urban Entrepreneur
01/ URBAN ENTREPRENEUR 4 Issy Coeur de Ville, (Issy-les-Moulineaux) 2018 ANNUAL RESULTS
Slide 5: An entrepreneurial adventure with a long-term vision
An entrepreneurial adventure with a long-term vision 5 2018 ANNUAL RESULTS
Slide 6: An unparalleled platform of skills
An unparalleled platform of skills Creativity 1,900 Commitment professionals Expertise Development at Building the forefront the city 6 2018 ANNUAL RESULTS
Slide 7: Building the city
Building the city Consolidated pipeline Residential, Business Property, Retail €18 billion of potential value 630 projects 4 million m² Altarea Cogedim, leading property developer in France 7 2018 ANNUAL RESULTS
Slide 8: Caring for public interest
Caring for public interest Making urban life sustainable Sharing the city Supporting jobs EVRARD CITY NEIGHBOURHOOD – Neuilly/Marne LABEL VISEHA – Cogedim Club® Terre-de-Sienne JOURNÉES POUR L’EMPLOI 2018 – Qwartz 100% projects with labels and quality 20% and/or environmental certifications social h
Slide 9: 2018 highlights
2018 highlights Iconic sales for €975 million (at 100%) Delivery of Montparnasse and sale of Semmaris Sale of stake in Semmaris KOSMO – Neuilly/Seine RICHELIEU – Paris PARIS-MONTPARNASSE RAILWAY STATION 2019 MIPIM Award Finalist Acquisition of Histoire & Patrimoine Rating of the Group by S&P Global
Slide 10: Residential: sales growth and market share gains
Residential: sales growth and market share gains 7.6% market share (+80 bps) Origination Commercial Launches New orders ECRIN DES DAMES – Paris 6 COEUR DE VILLE – Issy-les-Moulineaux L’ATELIER & GREEN LANE – Romainville Double Pyramide d’Or €5.1 bn (incl. tax) €3.2 bn €2.9 bn (+11%) +27% +10% 11,800
Slide 11: U-CARE (Paris 13th): innovating for wellness
U-CARE (Paris 13th): innovating for wellness Generational mix Mixed use 130 upgradeable and 2,200 m² of space dedicated modular units to Health & Care Wooden structure 11 2018 ANNUAL RESULTS
Slide 12: Business Property: high momentum
Business Property: high momentum New orders Construction launches Deliveries CONVERGENCE (Danone) – Rueil-Malmaison BASSINS À FLOT (Bordeaux) 52 CHAMPS ELYSÉES (Galeries Lafayette) - Paris €765 million incl. VAT 8 projects 8 buildings 96,000 m² 115,000 m² 12 2018 ANNUAL RESULTS
Slide 13: Richelieu: La Maison Altarea Cogedim, our vision for offices
Richelieu: “La Maison Altarea Cogedim”, our vision for offices Smart design Top of the art amenities Individual offices, social spaces Meeting rooms, project areas Parking for Auditorium Relaxation Business centre, models room bikes 287 spaces area Restaurant and food court Terraces Conciergerie The
Slide 14: Retail: a portfolio focused on best performing formats
Retail: a portfolio focused on best performing formats Regional shopping centres Travel retail Large retail parks Destinations areas natural footfall an appealing price / product ratio CAP 3000 - Saint-Laurent-du-Var (Nice) PARIS-MONTPARNASSE RAILWAY STATION FAMILY VILLAGE (Limoges) 2018 Business an
Slide 15: Paris-Montparnasse railway station: a top choice for retailers
Paris-Montparnasse railway station: a top choice for retailers Food & Services Opening schedule 130 shops, PHASE 1 PHASE 2 PHASE 3 restaurants & services delivered Q4 2019 Q4 2020 90 million passengers long term target Fashion & Accessories 15 2018 ANNUAL RESULTS
Slide 16: 02/ 2018 Performance
02/ 2018 Performance 16 Quartier Belvédère, Bordeaux 2018 ANNUAL RESULTS
Slide 17: 2018 Results
2018 Results FFO growth Low leverage Stable NAV €276 million €2,449 million €2,800 million +7.8% -€77 million +0.2% €17.3/share 34.9% LTV €174.3/share +5.2% -120 bps +0.2% 17 2018 ANNUAL RESULTS
Slide 18: FFO Group share: €276 million (+7.8%)
FFO Group share: €276 million (+7.8%) +89% €276 m €256 m 32% A performing model €192 m €161 m Residential: #1 contributor €146 m Business Property: rising contribution 11% 37% 20% Retail: a “new generation” REIT 69% 31% FFO per share: €17.3 (+5.2%) 2014 2015 2016 2017 2018 18 2018 ANNUAL RESULTS
Slide 19: Property Development: FFO at €194.1 million (+46%)
Property Development: FFO at €194.1 million (+46%) FFO Property Development (Residential + Business Property) €194.1 m Residential #1 contributor 90.7 €132.8 m In the ramp-up phase 35.4 €95.3 m Business Property €70.5 m 36.4 An operational model that €44.4 m 28.3 maximises sources of revenue 97.4 10
Slide 20: Retail: a new generation REIT
Retail: a “new generation” REIT FFO Retail €122.4 m 26,3 (1) €100.8 m €99.6 m €94.2 m €85.1 m Disposals 20,7 (2) Semmaris, small commercial galleries 6,6 (2) Paris-Montparnasse railway station delivery 1st phase end 2018 Recurring perimeter Recurring FFO: +4.2% 2014 2015 2016 2017 2018 (1) Roncq pro
Slide 21: Diluted Going Concern NAV: €174.3/share (+0.2%)
Diluted Going Concern NAV: €174.3/share (+0.2%) Strong Value Creation Business Property « New generation » retail delivery Financial FFO instruments Capital gains on disposals (10,0) 174,0 € (3,9) 11,7 174,3 € 172,6 € (2,2) Realistic view on portfolio 17,3 Portfolio Income tax Value (12,5) and other
Slide 22: Net Debt: €2,449 million (-€77 million)
Net Debt: €2,449 million (-€77 million) €320 m Dividend FFO Invest. Disposals investments €2,526 m 201 (276) €2,451 m 320 (379) €2,442 m €2,425 m Others €2,449 m financed by 57 €379 m disposals 73% pay-out 2015 2016 2017 2018 22 2018 ANNUAL RESULTS
Slide 23: Debt profile
Debt profile Strong improvement of Net 1st credit rating Strong credit metrics Debt / EBITDA ratio by S&P Global 10.4x BBB / stable LTV: 34.9% (- 120 bps) ICR: 9.2x (-0.1x) 8.8x Duration: 5 years 1 month 7.1x (-3 months) 6.5x Average cost: 1.94% Inaugural bond issue (+19 bps) by a European developer
Slide 24: The 2018 dividend
The 2018 dividend Tax consideration €12.75 €11.52: Share-premium refund per share (1) €1.23: Distribution from SIIC income Scrip dividend option +2.0% Either 100% cash Or 50% shares / 50% cash (2) (1) Subject to shareholders’ approval at the General Meeting of 28 June 2019 (2) Based on a 10% discoun
Slide 25: 03/ Outlook and Strategy
03/ OUTLOOK AND STRATEGY 25 Quartier des Simonettes, Champigny-sur-Marne 2018 ANNUAL RESULTS
Slide 26: Urban transformation: a huge market
Urban transformation: a huge market 26 2018 ANNUAL RESULTS
Slide 27: Territorial metropolisation: the major trend in our markets
Territorial metropolisation: the major trend in our markets Increasing polarisation Greater cities under pressure Outdated infrastructures Social inequalities, affordable housing, Widespread commercial, industrial and Populations, activities, wealth transport, pollution residential zones PARIS GREAT
Slide 28: Reshaping property infrastructures in greater cities
Reshaping property infrastructures in greater cities Redesigning property Intensifying land use Promoting mixed-uses for a sustainable city to resolve the economic equation to enrich urban life LA MAISON D’ARRÊT – Nantes L’HOSPITALITÉ - Kremlin Bicêtre COEUR DE VILLE (Issy-les-Moulineaux) 28 2018 AN
Slide 29: Large mixed-use projects: reconnecting cities
Large mixed-use projects: reconnecting cities 48,000 m² Communities which were once located on the outskirts of main built-up areas are being transformed into real urban centres, with all city features Altarea Cogedim : leader in large mixed-use projects 10 projects ongoing JOIA MERIDIA – Nice €3.3
Slide 30: Redevelopment of an industrial site into a new district
Redevelopment of an industrial site into a new district Toulouse: from the CEAT-area ("La Soufflerie") to the new Guillaumet district 101,000 m² Capitole 13 hectares unoccupied since 2000, 3 metro stations from Capitole 1,200 units 5,800 m² 7,500 m² 17,000 m² 17,000 m² 30 2018 ANNUAL RESULTS
Slide 31: Redevelopment of a low-densified area into a lively city center
Redevelopment of a low-densified area into a lively city center Bezons: creating the heart of a new urban area 67,000 m² Grande Arche La Défense 14 hectares of waste and brownfield land, 12 minutes from La Défense by tram 730 units 18,000 m² 1 school 4.6 hectares 31 2018 ANNUAL RESULTS
Slide 32: Retail know-how: the key to urban renovation projects
Retail know-how: the key to urban renovation projects A diversified revenue model rents, fees, margins, capital gains Partnerships on assets Increased volume and number of projects Intrinsic value derives from our diversity of specific know-hows Altarea Cogedim positioned both as investor and seller
Slide 33: Next generation convenience retail: rising expectation from public authorities and citizens
Next generation convenience retail: rising expectation from public authorities and citizens 105,000 m² Retail, by success factor for mixed- o/w 17,300 m² of retail use projects Eating places & Sport, wellness restaurants Dedicated convenience offering High proportion of food anchored retailers & Cit
Slide 34: Redevelopment of fading retail sites: 120 potential sites identified
Redevelopment of fading retail sites: 120 potential sites identified Bobigny2, an hypermarket anchored center transformed into an intense city centre 107,000 m² Place de la Concorde Built in 1974 near the Prefecture building An outdated urban model 1,170 units 13,000 m² 10,000 m² 34 2018 ANNUAL RESU
Slide 35: Carré de Soie (greater Lyon): transformation of the catchment area
Carré de Soie (greater Lyon): transformation of the catchment area 2003: a suburban retail park in peripheric Lyon Today: a leisure & shopping urban destination 60,000 m² Neighboring areas Town Hall Lyon experiencing major changes New transportation infrastructures 1 tram, 1 metro station, 8 buses N
Slide 36: One step ahead, strong outlooks
One step ahead, strong outlooks Metropolization and urban polarization set to increase the shortage of housing and prime offices An unparalleled platform of skills Retail will remain critical to to design all city components greater cities life Management complexity coupled with Scarcity of real est
Slide 37: Transforming cities, creating mid & long term value for Altarea Cogedim
Transforming cities, creating mid & long term value for Altarea Cogedim 37 2018 ANNUAL RESULTS
Slide 38: Very strong visibility for 2019-2020
Very strong visibility for 2019-2020 Retail Property development Large mixed-use projects CAP 3000 – extension opening PALOMAYA – Montpellier ISSY CŒUR DE VILLE – Issy-les-Moulineaux Deliveries Backlog Contribution Paris-Montparnasse (tranches 2&3), Cap 3000 €4.0 bn of major projects 38 2018 ANNUAL
Slide 39: 2020 guidance
2020 guidance 2020 FFO: ≈ €300 m taking into account the increase in tax on the non-SIIC activity and changes in accounting standards (IFRS 15 & 16) 2019 FFO: consistent with this path 39 2018 ANNUAL RESULTS
Slide 40: 04/ Appendices & Glossary
04/ APPENDICES & GLOSSARY 40 Les Grands Moulins, Marquette-lèz-Lille 2018 ANNUAL RESULTS
Slide 41: Net Asset Value (NAV)
Net Asset Value (NAV) GROUP NAV 31/12/2018 31/12/2017 In € millions Change €/share Change In € millions €/share Consolidated equity, Group share 2,007.9 125.0 1,904.8 118.7 Other unrealised capital gains 641.1 722.1 of which Semmaris – 122.5 of which Property development 548.4 548.4 of which Other a
Slide 42: P&L 2018
P&L Changes in value, Funds from In € millions Retail Residential Business Property Other Corporate estimated expenses and TOTAL operations (FFO) transaction costs Revenue 211.9 1,848.2 345.2 0.2 2,405.6 – 2,405.6 Change vs. 31/12/2017 +1.8% +29.8% +12.6% N/A +24.0% +24.0% Net rental income 167.1 –
Slide 43: Balance Sheet (1/2)
Balance Sheet (1/2) € millions 31/12/2018 31/12/2017 NON-CURRENT ASSETS 5,296.9 5,437.9 Intangible assets 313.7 258.5 o/w goodwill 194.3 155.3 o/w brands 100.7 89.9 o/w client relations - - o/w other intangible assets 18.8 13.3 Property. plant and equipment 20.6 18.5 Investment properties 4,526.2 4,
Slide 44: Balance Sheet (2/2)
Balance Sheet (2/2) € millions 31/12/2018 31/12/2017 EQUITY 3,237.3 3,164.7 Equity attributable to Altarea SCA shareholders 2,007.9 1,904.8 Capital 245.4 245.3 Other paid-in capital 407.9 563.2 Reserves 1,099.3 773.2 Income associated with Altarea SCA shareholders 255.3 323.0 Equity attributable to
Slide 45: Glossary 1/2
Glossary 1/2 • Average cost of debt: Average cost including related fees (commitment fees, • FFO (Funds from operations) or recurring net result: Net result excluding CNU…). changes in value, calculated expenses, transaction fees and changes in • Bad debt ratio / doubtful debtors: Net amount of allo
Slide 46: Glossary 2/2
Glossary 2/2 • Large mixed-use projects: Complex real estate programmes, offering a mix • Pipeline (in potential value): Estimated market value at delivery date. Retail – of Residential, Retail and Office, and also including public and leisure creations / extensions: potential market value (incl. tr