Unibail-Rodamco-Westfield SE · EURONEXT:URW

Unibail-Rodamco-Westfield — Unibail-Rodamco — H1 2011 Earnings Presentation

72 slides from Unibail-Rodamco-Westfield's earnings presentation, 2011

1. Slide 1: 2011 Half Year Results: Delivering on strategy

   2011 Half Year Results Delivering on strategy

2. Slide 2: Table of Contents

   TABLE OF CONTENTS  2011 Half-Year Financial Results  Strong operating performance in all divisions  Progress on disposals  Development pipeline on track  Update on valuation  Solid financial structure  Outlook

3. Slide 3: 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 Financial Markets (AMF) and has a license under the Dutch Financial

4. Slide 4: 2011 Half-Year Financial Results

   2011 HALF-YEAR FINANCIAL RESULTS Parquesur – Madrid 2011 Half Year Results

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6. Slide 6: 2011 Half-Year Financial Results

   2011 HALF-YEAR FINANCIAL RESULTS % Like-for-like H1 2011 H1 2010 % Growth growth(4) in € Mn Shopping centres 500 474 +5.5% +5.2% Offices 100 108 -7.7% +3.2% Convention & Exhibition 46 41 +12.4% +12.4% Net Rental Income 647 624 +3.7% +5.5% Convention & Exhibition Services NOI 26 23 +12.3% Recurring N

7. Slide 7: Consolidated net result of €883 Mn in H1-2011

   Consolidated net result (Group share) was a profit of €883 Mn in H1-2011. This figure breaks down as follows:  €435 Mn of recurring net profit  €448 Mn of fair value adjustments and net gains on disposals Recurring Earnings per Share (EPS) came to €4.74 in H1-2011, representing an increase of 0.9%

8. Slide 8: Strong Operating Performance in All Divisions

   STRONG OPERATING PERFORMANCE IN ALL DIVISIONS So Ouest – Paris Region 2011 Half Year Results

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10. Slide 10: Strong Rental Income Growth

    STRONG RENTAL INCOME GROWTH % Like-for-like in € Mn H1-2011 H1-2010 % Growth growth(1) France 255 235 +8.6% +5.7% The Netherlands 40 62 -35.2% +0.0% Nordics 47 46 +1.0% +8.0% Shopping Spain 63 60 +5.3% +2.4% centres Central Europe 51 32 (2) +58.8% +8.6% Austria 44 39 (2) +13.9% +6.6% Net Rental Inco

11. Slide 11: Shopping centre Net Rental Income of €500.4 Mn

    Total consolidated shopping centre Net Rental Income (NRI) amounted to €500.4 Mn in H1-2011. The total net growth in NRI amounted to +€26.1 Mn (+5.5%) and broke down as follows:  +€33.1 Mn from acquisitions: Simon Ivanhoe portfolio, an increase in stake in Euralille and additional plots in other sh

12. Slide 12: A Like-for-Like Growth in NRI

    A LIKE-FOR-LIKE TO LIKE Unibail-Rodamco’s like-for-like increase in NRI in the shopping centre division 9 +7.9% +7.7% 8 7 6 4.0% +5.2% 4.4% 5 +3.9% 2.0% Renewals/Relettings net of Departures 4 1.1% 3 0.7% Higher sales based rents and key money +4.3% 0.5% Lower doubtful debt provisions 2 3.9% 0.3% Lo

13. Slide 13: Average NRI growth net of indexation of +4.3%

    Net of indexation and on a like-for-like basis, the average NRI growth rate was +4.3%, the best performing regions being Central Europe (+7.2%) with notably successful relettings in Chodov-Prague and Mokotow-Warsaw, and Austria (+5.2%) thanks to the success of the existing part of Donau Zentrum foll

14. Slide 14: H1-2011 Strong Leasing Activity

    H1-2011 STRONG LEASING ACTIVITY  704 leases signed in H1-2011 in line with H1-2010(1) Number of leases signed stabilising at high levels(1)  Strong increase in leases signed with premium retailers 718 704  60 in H1-2011 compared to 48 in FY-2010  Rental uplift(2) of 16.2% in H1-2011 compared to

15. Slide 15: 704 leases signed in H1-2011

    During H1-2011, 704 leases(1) were signed (718 in H1-2010) for €65.3 Mn of Minimum Guaranteed Rents with an average uplift(2) of 16.2% (16.5% in H1-2010) on renewals and relettings. The rental uplift was higher for shopping centres above 6 Mn visits with an increase of 18.5% in H1-2011 (vs. 2.9% for

16. Slide 16: Tenants' Sales: The Gap Widens

    TENANTS’ SALES: THE GAP WIDENS Tenants’ sales growth in Unibail-Rodamco’s Portfolio vs. national indices since 2006 (rebased) Sales growth (rebased) 110  Increasing gap confirmed in H1-2011  +4.2% increase in tenants’ sales 105 in Unibail-Rodamco’s portfolio in H1-2011(3) 100  +0.8% for overall n

17. Slide 17: Challenging economic environment in H1-2011

    The economic environment remained challenging in H1-2011, with contrasted performances throughout Europe and relatively low GDP growth. Overall national sales indexes as of May picked up significantly in certain countries, like Austria, Finland, Poland or the Czech Republic, but the situation remain

18. Slide 18: Marked Differences Between Retail Sectors

    MARKED DIFFERENCES BETWEEN RETAIL SECTORS Tenants’ sales evolution in Unibail-Rodamco’s portfolio by sector in H1-2011 vs H1-2010 Tenants’ sales growth (in %) 12% Bags, Footwear & Accessories 9% 6% Fashion Home Health & beauty Average tenants’ Entertainment Culture & Media & Tech(2) sales growth(1):

19. Slide 19: Retail sales growth and online sales

    Retail sales growth in Europe was partially fuelled by on-line sales, reaching once again double-digit growth on main markets, such as +20% in France at end of May year on year. Internet sales now represent a significant channel for certain market segments like electronic goods (up to 20% in countri

20. Slide 20: Southern California Comes to Unibail-Rodamco

    SOUTHERN CALIFORNIA COMES TO UNIBAIL-RODAMCO Our ability to attract customers to our stores depends, in part, on the success of the Shopping Malls in which most of our stores are. We locate our stores within prominent successful shopping malls. 10 k Abercrombie & Fitch Group report - March 29, 2011

21. Slide 21: Hollister stores in the portfolio

    After having introduced Hollister (Abercrombie & Fitch Group) in La Maquinista in Barcelona in 2010, the Group’s portfolio will host the first 4 Hollister stores in France, their first store in Sweden and a second store in Spain. 7 additional leases are currently under negotiation across the portfol

22. Slide 22: Shoes for Increasing Footfall

    SHOES FOR INCREASING FOOTFALL  1,600 Aldo stores in 56 countries by the end of 2010(1)  $1.5 Bn in revenues in 2010(1)  Development planned in 6 new countries in 2011, among which Austria and Sweden  Already present in Denmark and Poland in the Group’s shopping centres  Expanding with Unibail-R

23. Slide 23: ALDO stores in the portfolio

    6 ALDO stores are present in Unibail-Rodamco’s portfolio, with further expansion plans in Europe. “ALDO specialises in the creation of high-quality fashion footwear, leather goods and accessories. This sought-after brand pays close attention to detail and to fine craftsmanship. ALDO is dedicated to

24. Slide 24: Velizy 2: Retenanting Showcase

    VELIZY 2: RETENANTING SHOWCASE  Strong retenanting with the introduction of premium retailers(1) resulting in H1-2011 in:  +9.2% tenants’ sales increase  +63.8% rental uplift on 8 leases signed 24

25. Slide 25: Premium retailers in Vélizy 2

    A number of premium retailers were introduced or were signed recently in Vélizy 2, a 104,200 m² GLA shopping centre hosting 15.5 Mn visits per year including:  Apple  Desigual  Mango  Hollister (opening in September 2011)  Kiko (opening in Q4-2011)  Forever 21 (opening in Q1-2012) … Thanks to

26. Slide 26: Donau Zentrum: Redesigning Showcase

    DONAU ZENTRUM: REDESIGNING SHOWCASE Donau Zentrum, Vienna  +28% increase in retail space following the extension delivered in October 2010  +46.5% sales increase in H1-2011  +79.1% rental uplift on 11 leases signed in H1-2011 26

27. Slide 27: Donau Zentrum extension and retenanting

    Donau Zentrum has benefited from a significant extension of 25,876 m² GLA delivered in October 2010, which led to an increase of 28% of the centre’s retail surface to 119,076 m² GLA. This extension was a key step in introducing new premium retailers such as Desigual, Starburcks, Bershka, The Body Sh

28. Slide 28: Elite: Remarketing Showcase

    ELITE: REMARKETING SHOWCASE  Increase in footfall  Increase in Facebook fans/internet traffic  Free media coverage 28

29. Slide 29: Facebook fans and digital communication

    Unibail-Rodamco’s shopping centres have a total of 450,000 Facebook fans following proactive remarketing approach through digital communication tools. This number significantly increased thanks to major events like the Elite show. These events also generate free advertising reinforcing the image and

30. Slide 30: Paris Office Market: Lack of New Supply

    PARIS OFFICE MARKET: LACK OF NEW SUPPLY Paris region: stable take-up and vacancy with limited number of building starts m² Vacancy rate (%) 15% 3,000,000 10% 2,000,000 5% 1,000,000 0% 1993 1995 1997 1999 2001 2003 2005 2007 2009 H1-2011 Take-up (m²)(1) Building starts (m²)(2) Vacancy rate (%)(3) 30

31. Slide 31: Low supply of new products in Paris

    The Paris market is characterised by a low supply of new products:  4 years in a row decrease in building starts  Buildings starts stands below 40% of its peak in 2001 New buildings are mostly concentrated in secondary areas and made of medium scale buildings. Both rental and investment demand is

32. Slide 32: Active Office Portfolio Management in France

    ACTIVE OFFICE PORTFOLIO MANAGEMENT IN FRANCE  Sound leasing activity:  21,805 m² let/re-let/re-negotiated in H1-2011  +8.6% rental uplift on re-lettings/renewals  Refurbishment and extension under way:  70-80 Wilson – La Défense: refurbishment  Issy Guynemer – Issy-Paris Region: refurbishment

33. Slide 33: French office like-for-like NRI up 4.2%

    French office division like-for-like NRI increased by 4.2% in H1-2011 with a modest contribution from indexation of 0.5%. In France, 11 leases were signed or renewed during H1-2011: 21,805 m² were renewed or relet with an average rent uplift of 8.6%. Estimated rental value of vacant spaces in France

34. Slide 34: Convention & Exhibition: Strong H1-2011 Activity

    CONVENTION & EXHIBITION: STRONG H1-2011 ACTIVITY % Growth in € Mn H1-2011 H1-2010 H1-2009 2011/2010 C&E venues NOI (1) 62 52 69 19.0% Hotels recurring NOI 4 6 6 -40.7% Venues recurring NOI 66 58 75 12.9% Depreciation -6 -6 -5 n.m. Comexposium contribution(2) 7 6 6 6.5% Recurring result of the divisi

35. Slide 35: Convention and Exhibition outlook

    The Convention and Exhibition business has been exposed to the economic crisis. The average floor space rented for a typical show is reducing and the opening period is sometimes shortened. Nevertheless, the outlook is promising. The creation of new shows is picking up again. 30 new shows are planned

36. Slide 36: Hosting Landmark Shows

    HOSTING LANDMARK SHOWS Agriculture show, Paris Porte de Versailles Air show, Paris Le Bourget 680,000 visitors 200,000 visitors +4% vs. last year +4% vs. last edition  Success of existing shows  Signature of new events like the European Society of Cardiology Convention in Villepinte, one of the 5

37. Slide 37: Landmark shows and Porte de Versailles

    The important shows have seen little impact of the crisis, as they have become landmark events for the public at large. The activity level during H1-2011 has been largely driven by the “Agriculture show” (SIA) and “Paris International Agri- business show” (SIMA), where the number of visitors increas

38. Slide 38: Progress on Disposals

    PROGRESS ON DISPOSALS 3-5 Malesherbes – Paris 2011 Half Year Results

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40. Slide 40: Delivering on Strategy

    DELIVERING ON STRATEGY Strategic Vision Achievements  Focus on large malls and capture value through  €5.4 Bn of disposals realised since the merger in disposals of mature assets June 2007, of which €2.6 Bn since January 1, 2010  €1.1 Bn of assets sold or under sale agreement in H1-2011  Disposa

41. Slide 41: €5.4 Bn of disposals since the 2007 merger

    €5.4 Bn of disposals have been realised since the merger in June 2007. Half of these disposals (€2.6 Bn) have been completed since 2010 with an acceleration in H1-2011. In H1-2011, €1.1 Bn of assets have been sold (or are under sales agreement) at a 9.1% premium over last unaffected external apprais

42. Slide 42: Ongoing Opportunistic Capital Recycling

    ONGOING OPPORTUNISTIC CAPITAL RECYCLING Croix Dampierre, Châlons-en-Champagne Buitenmere, Almere 11,200 m² GLA - 4 Mn visits 16,200 m² GLA - mixed use Tyresö Centrum, Tyresö Väsby Centrum, Stockholm 22,100 m² GLA - 6 Mn visits 26,700 m² GLA - 6 Mn visits 42

43. Slide 43: Opportunistic sales and selective acquisitions

    Ongoing opportunistic sales of lower growth potential assets continued in H1-2011, in all the regions where Unibail- Rodamco operates. In H1-2011, Unibail-Rodamco made a few selective acquisitions:  €31.7 Mn was invested in acquisitions of additional plots in Les 4 Temps and Aquaboulevard in Paris,

44. Slide 44: Disposals at Significant Premiums

    DISPOSALS AT SIGNIFICANT PREMIUMS Premium Net proceeds(1) over last Asset (€ Mn) appraisals(2) NIY(3) Retail - France 217 18.3% 5.0% H1-2011 Retail - Sweden 331 9.5% 5.9% booked disposals Retail - Other 193 9.8% 5.9% Office & other 73 5.5% 7.2% Total 814 11.5% 5.8% Retail - France, Austria and Nethe

45. Slide 45: Divestment of non core assets

    Divestment of non core assets has been pursued actively in H1-2011: 23 assets were sold for a total net disposal price of €814 Mn(1) including:  €217 Mn in France: Shopping Etrembières-Annemasse and participations in St Genis 2 near Lyon and Evry 2 in Paris region, Boisseuil in Limoges and Croix-Da

46. Slide 46: Development Pipeline on Track

    DEVELOPMENT PIPELINE ON TRACK Cerny Most – Prague 2011 Half Year Results

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48. Slide 48: Moving into Higher Gear

    MOVING INTO HIGHER GEAR Unibail-Rodamco’s Total Investment development pipeline Cost € Bn €6.9 Bn €6.6 Bn Committed Committed projects(1) Development pipeline by category projects(1) 1.7 2.3 Office & Other Retail Extension Brownfield /Renovation €2.4 Bn €1.5Bn 34% 23% Controlled projects(2) Controll

49. Slide 49: Development pipeline grew to €6.9 Bn

    Unibail-Rodamco’s development project pipeline grew in H1-2011 with circa €300 Mn to €6.9 Bn as of June, 30 2011. This corresponds to a total of 1.4 Mn m² Gross Lettable Area (GLA), re-developed or added to the portfolio. The €0.3 Bn increase in total development pipeline is due to one additional pr

50. Slide 50: Lyon Confluence: 76% Pre-let with Premium Brands

    LYON CONFLUENCE: 76% PRE-LET(1) WITH PREMIUM BRANDS Lyon Confluence, Lyon GLA: 53,542 m² TIC: €282 Mn Opening Date: Q2-2012 50

51. Slide 51: Lyon Confluence second largest shopping centre

    Lyon Confluence will be Lyon’s second largest shopping centre after La-Part-Dieu with 53,542 m² GLA, to be delivered in Q2-2012, in the heart of a new area of the extending city at the crossroad of the Rhone and Saone rivers. This new district will host residential, offices, hotels and will be ancho

52. Slide 52: Groundbreaking Events

    GROUNDBREAKING EVENTS Aéroville, Paris Region Cerny Most, Prague GLA: 81,423 m² GLA extension: 44,213 m² TIC: €321 Mn GLA total: 97,513 m² Opening Date: H2-2013 TIC: €145 Mn Opening Date: H1-2013 52

53. Slide 53: Aéroville and Cerny Most works

    Building rights were acquired and works have started on Aéroville, a shopping centre with 81,423 m² of GLA which is expected to be completed by end 2013. Located in Tremblay-en-France, Roissy-en-France and on Paris Airports land, at the crossroads of the A1 motorway and Paris’ “Francilienne” ring ro

54. Slide 54: Majunga: The Next Generation Office

    MAJUNGA: THE NEXT GENERATION OFFICE  Highly efficient building with 1 workstation/9.4 m²  Low energy consumption  Best environmental standards with a BREEAM Excellent certification  To be delivered in H2-2013 in a low supply and low Majunga, La Défense vacancy environment GLA: 63,035 m² TIC: €37

55. Slide 55: Majunga tower works started

    Works have started on Majunga, a 63,035m² GLA tower that will stand over 200 m tall in the La Défense business district in Paris, France and will be delivered end of 2013. The tower is part of La Défense renewal plan and is one of the few projects that have received all its authorisations and is und

56. Slide 56: Update on Valuation

    UPDATE ON VALUATION Nova Lund – Lund 2011 Half Year Results

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58. Slide 58: Rental Growth Drives Valuations

    RENTAL GROWTH DRIVES VALUATIONS in € per share Going Concern NAV €138.80 Recurring net profit €136.50 (€8.00) +5.20 and others €128.50 + €10.30 +0.60 Gain on disposals Rental +4.50 +3.10 effect(2) Portfolio revaluation like-for-like Yield +1.40 effect(2) Dec. 2010 2011 Distribution Dec. 2010 Proform

59. Slide 59: Portfolio valued at €24.8 Bn

    Unibail-Rodamco’s portfolio(1) is valued €24.8 Bn as at June 30, 2011, vs. €24.5 Bn as at December 31, 2010. On a like- for-like basis, the value of the Group’s portfolio increased by €538 Mn (net of investments) or +2.4% compared to year- end 2010. This increase is driven by a positive rental impac

60. Slide 60: Risk Premium at Historical High

    RISK PREMIUM AT HISTORICAL HIGH Unibail-Rodamco’s shopping centre portfolio net initial yield(1) vs. long term real interest rates(2) 7% 6.1% 6% 5.6% 5.7% 5.4% 5.5% 5.3% 5% 4.8% 4.6% 4% +390 bps Risk premium: 3% +440 bps 2% 1% 0% 2004 2005 2006 2007 2008 2009 2010 H1-2011 (2) (1) 10-year real intere

61. Slide 61: Net initial yield of 5.5%

    Net initial yield(1) for the shopping centre division stood at 5.5% as at June 30, 2011, vs. 5.7% at year-end 2010, representing a compression of 20 bps. For occupied offices, the net initial yield(1) stood at 6.5% as at June 30, 2011 (vs. 6.6% at year-end 2010), with France at 6.3% (vs. 6.4% at yea

62. Slide 62: A Stable Value per m²

    A STABLE VALUE PER M² 8,000 200 7,000 6,000 150 5,000 € / share € / m² 4,000 3,000 100 2,000 1,000 - 50 H1-2007 2007 H1-2008 2008 H1-2009 2009 H1-2010 2010 H1-2011 Entreprise value(1) (left scale) Gross Market Value(3)(left scale) Unibail-Rodamco share price(4) / GLA(2) (€/m²) / GLA(2) (€/m²) (right

63. Slide 63: Stable portfolio valuation over four years

    Valuation of the portfolio has remained stable over the past 4 years in terms of Enterprise Value/m² and Gross Market Value/m² at around €5,300/m². The significant improvement of the portfolio’s quality over this period through the Group’s capital recycling policy largely offsets the effects of the

64. Slide 64: Solid Financial Structure

    SOLID FINANCIAL STRUCTURE Fisketorvet – Copenhagen 2011 Half Year Results

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66. Slide 66: Solid Financial Structure

    SOLID FINANCIAL STRUCTURE Unibail-Rodamco's LTV (1) evolution  €9.3 Bn net financial debt as at June 30, 2011 60% Bank covenant  38% LTV(1)  3.8x ICR(2) 40%  Decreasing cost of debt 20%  3.6% in H1-2011  3.9% in 2010 0% 1998 2000 2002 2004 2006 2008 2010 H1-  €2.6 Bn of undrawn lines as at Ju

67. Slide 67: Financing transactions completed in H1-2011

    Medium to long term financing transactions completed in H1-2011 amounted to €555 Mn and include:  The signing of €205 Mn medium to long term credit facilities with an average maturity of 5.0 years and an average margin of ca 69 bps  The issue of five taps on existing EMTN bonds for a total amount

68. Slide 68: Outlook

    OUTLOOK La Part Dieu – Lyon 2011 Half Year Results

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70. Slide 70: 2011 Outlook

    2011 OUTLOOK  The Group re-iterates its 2011 recurring EPS outlook of -3% to -5% decrease, reflecting the impacts of the exceptional distribution of October 2010 and the ongoing disposal programme  Based on the H1-2011 results, the Group expects to come out closer to -3% 70

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72. Slide 72: 2011 Half Year Results

    Phare Tower – Paris La Défense 2011 Half Year Results

Unibail-Rodamco — H1 2011 Earnings Presentation on 6ix