Wereldhave N.v. · EURONEXT:WHA
Wereldhave — FY2022 Earnings Presentation
56 slides from Wereldhave's earnings presentation, Feb 9, 2023
Slide 1: Results FY 2022
Slide 2: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Financing & Valuations 5. ESG 6. Management Agenda 7. Appendices Wereldhave
Slide 3: Key Messages
Key Messages * Total result increased to +€ 76m vs. a loss of € 213m in 2021 * Direct result 2022 at € 1.63 per share, well within guidance range of € 1.60-1.65 * Proposed dividend for 2022 at € 1.16 per share (+5.5%) * Tenant sales above pre-Covid levels; leasing spreads positive for first time in
Slide 4: Highlights FY 2022
Excluding disposals Highlights FY 2022 18% increase DRPS Strategy gaining traction: significant mixed use increase FY 2021 FY 2022 Change Direct result per share (€) 1.88 1.63 (0.25) Indirect result per share (€) (7.52) (0.20) 7.32 Total result per share (€) (5.64) 1.43 7.07 FY 2021 FY 2022 Change E
Slide 5: Highlights FY 2022
Highlights FY 2022 LFL NRI growth driven by higher indexation and lower doubtful debt costs Like-for-Like Net Rental Income Growth FY 2022 vs. FY 2021; % 14.4% 9.9% 8.8% 5.6% 2.3% [| (0.7%) Belgium Netherlands Core Portfolio France Office Belgium Total 5 Wereldhave
Slide 6: Table of contents
Table of contents 1. Key Messages & Highlights 3. LifeCentral 4. Financing & Valuations 5. ESG 6. Management Agenda 7. Appendices Wereldhave
Slide 7: Operations FY 2022
Operations FY 2022 Positive overall leasing spread and occupancy highest since 2014 # of Leasing 3) Occupancy _ =“ ~ a REE Belgium 1.6% 5.9 15.4% 977% Netherlands 77 21.3% 0.0% 44% 96.1% France 10.3% (0.7%) 971% 4, New leases and renewals excun cher commercial aces suchas temporary leases pop p cont
Slide 8: Continued strong FSC performance
Continued strong FSC performance Three assets only very recently completed as FSC KPI Full Service Center —_In Transformation Shopping Center # Assets 5 6 6 Mixed Use Percentage 16% 16% 9% MGR Uplift” G12%) (4.3%) +1.6% MGR vs. ERV +2.7% +11.6% +8.1% Tenant Sales vs. 2019 +7.4% +6.2% +9.0% NPS 18 +2
Slide 9: Footfall outperforming in our core markets
Footfall outperforming in our core markets Footfall growth vs. same period 2019: Belgium Footfall growth vs. same period 2019: Netherlands FY 2022; % FY 2022; % 10 ie) -20 N 4s 3 fo) ° b ro) January February March April May June July August September October November December January February March
Slide 10: Tenant Sales
Tenant Sales 6% increase in tenant sales versus 2019” Tenant sales 2022 vs. 2019: Belgium?) Tenant sales 2022 vs. 2019: Netherlands?) FY 2019 & FY 2022; % FY 2019 & FY 2022; % 26% 20% 14% 10% 9% 10% 1% 5% RG: UW is = mo = || | — =| = || 6% LI -1% Wereldhave Fashion Food& Health € Homeware Multimedia
Slide 11: Wereldhave tenant sales vs. 2019 on upper hand of peer range
Wereldhave tenant sales vs. 2019 on upper hand of peer range Tenant sales 2022 vs. 2019 FY 2019 & FY 2022"; % 61% 2.4% [ a -3.0% | | » 4.5% -5.3% Wereldhave Core Peer 1 Wereldhave Core Peer 4 Peer 5 Peer 6 Portfolio - FY 2022 Portfolio - H1 2022 re, Mercialys URW Wereldhave
Slide 12: LifeCentral Strategy makes WH more resilient
LifeCentral Strategy makes WH more resilient in an uncertain macro environment 2019 2020 2021 2022 % of rent % of rent % of rent % of rent <2, Total Daily Life: 51% L 4% 8% P Total Daily Total Daily Life: 62% Co 13% A. Life: 53% Daily Life I Food Ill Food & Beverage Fashion (discount) [lll Fashion (
Slide 13: Benelux update
OTACOS Benelux update Belgium 73 retail deals signed, 15.4% above ERV and 5.9% above previous rent on average. For example: + Les Bastions: Kiabi and Hawaiian Poké Bowl * Nivelles: Delhaize, Zeeman, TAO Kids and ICI Paris XL * Genk Shopping 1: C&A, Jack & Jones, Paradisier, Chick & Cheez and Kruidva
Slide 14: Physical retail market performs well, but pressure on online
Physical retail market performs well, but pressure on online Physical Retail market turned more positive Online Retail market is facing challenges * Retail vacancy in The Netherlands at lowest point in ten * 2022 Online sales Dutch retail down by 7.6% vs. 2021 years): . : * Starting to charge for de
Slide 15: Short-term lease exposure decreased due to LifeCentral
Short-term lease exposure decreased due to LifeCentral Short Term Leases at Wereldhave 2019-2022; as a %-point of EPRA Occupancy; Shopping Centers only 2.3% 2.0% 2.0% 1.6% Dec-19 Dec-20 Dec-21 Dec-22 tp souce eine Wereldhave
Slide 16: LifeCentral improved tenant business by resetting rent levels
LifeCentral improved tenant business by resetting rent levels and increasing tenant sales OCR Wereldhave Belgium” OCR Wereldhave NL?) FY 2022; % FY 2022; % 15.2% 14.8% 13.0% 12.4% 119% 111% 8.3% 79% 6.4% 4.0% yl LJ — Wereldhave Fashion Food & Homeware & Multimedia & Supermarkets Wereldhave Fashion F
Slide 17: Due to LifeCentral Wereldhave second OCR amongst peers
Due to LifeCentral Wereldhave second OCR amongst peers OCR FY 2022" % 12.4% 11.9% ===] eC! d«C eC Ce cs teeta --- q 10.8% Peer1 Wereldhave Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Core Portfolio Post FSC transformations we expect WH OCR to be c9% 1) Peers are Ht 2022 data op Eugene macys uo Wereldhave Sou
Slide 18: Direct result
Direct result 13% increase in Direct Result excluding disposals € 88.5m € 17.8m (91m (#13%) i €57 €04 €1.2m €79.8m Oe oe Eo4m | a € 3.0m _ con Actuals Disposals Actuals 2021 NRI Netherlands NRI NRI General Interest Actuals 2021 excl. disposals Belgium France Cost 2022 18 Wereldhave
Slide 19: Changing Headquarters Starting Q3 2023
Changing Headquarters Starting Q3 2023 Continuing to strive for Aligning staff with smaller asset base optimal efficiency LifeCentral phase 2 (growth phase) should result in Exploring phase 2 of lower cost ratio by realizing operational synergies LifeCentral
Slide 20: 2022 DRPS € 1.63 and outlook 2023 DRPS at € 1.65 — 1.75
2022 DRPS € 1.63 and outlook 2023 DRPS at € 1.65 — 1.75 Direct Result per Share Dividend per Share € € 2.01 1.16 188 110 163 1.65175 / 0.50 2020 2021 2022 2023FC 2020 2021 2022P 20 Wereldhave
Slide 21: DRPS Growth 2023 — 2027 Explained
DRPS Growth 2023 — 2027 Explained Expected average annual DRPS Growth 2023 — 2027 2023-2027 % eva CAGR = 4.0% * The 2023 — 2027 growth comes from multiple drivers + Leasing contracts indexed annually with inflation, we use 3.0% in our forecasts + Additional rental income mainly driven by the expecta
Slide 22: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 4. Financing & Valuations 5. ESG 6. Management Agenda 7. Appendices Wereldhave 22
Slide 23: LifeCentral progress 2022
LifeCentral progress 2022 * Delivered three additional FSCs: In The Netherlands Sterrenburg in Dordrecht and City-Center Tilburg and in Belgium Ring Kortrijk in Courtrai + Allthree FSCs delivered, of which Kortrijk and Tilburg 100% let and Sterrenburg 96% * Six ongoing transformations, of which four
Slide 24: FSC Transformation Ring Kortrijk
FSC Transformation Ring Kortrijk Full refurbishment of exterior, creation of an exterior F&B and events area and opening of the center towards the outside * Development works started Q2 2021 and have been completed Q4 2022 * Main items: * Full refurbishment of exterior facades * Creation of exterior
Slide 25: FSC Transformation Sterrenburg, Dordrecht
FSC Transformation Sterrenburg, Dordrecht A convenience-focused Full Service Center that perfectly fits the characteristics of the catchment area 25 Construction works finished Q4 2022 Key items: + Extension traditional Jumbo supermarket (2,200 m2) to a Jumbo Foodmarket (4,500 m2) - opened February
Slide 26: FSC Transformation City-Center Tilburg
FSC Transformation City- Center Tilburg Becoming ‘The shopping destination’ of the complete area with an optimal combination of retail, a broad variety of F&B, leisure and multiple services * FSC opened on 24 November 2022 with 100% occupancy * Key items: + Full re-build of the Emmapassage * Constru
Slide 27: FSC Transformation Vier Meren, Hoofddorp
N FSC Transformation Vier Meren, Hoofddorp A Full Service Center with the right retail balance and extensive mixed use offerring, focused on F&B and Leisure * Construction works started in January 2022 and expected to finish Q2 2023. Opening scheduled for September 2023. * Main items: + Addition of
Slide 28: FSC Transformation De Koperwiek
FSC Transformation De Koperwiek, Capelle a/d lJssel A Full Service Center with a broad convenience offering, combined with extensive F&B offering and a gym Key items already realized: + Implementation of our fresh cluster concept every.deli, including the extension of Jumbo | 2021 * Interior refurbi
Slide 29: LifeCentral CAPEX decreased while FSC transformations will still be completed
LifeCentral CAPEX decreased while FSC transformations will still be fully completed Investments only done in Total LifeCentral investments” in NL and BE, excl. FR ~~~ NU & BE assets with IRRs above threshold of 7.0% € m, 2020-2025+ 350 Given the current macro economic 138 circumstances and price lev
Slide 30: We face limited price risk on ongoing transformations
We face limited price risk on ongoing transformations LifeCentral CAPEX breakdown Raw Materials Deepdive €m €m 153 31 122 31 oy 5 |? To Spend Non- Construction Raw Labor Other Raw Materials Committed with Development At risk Construction CAPEX Materials fixed prices start 2024+ CAPEX jo Souce seine
Slide 31: Capital allocations decisions NL & BE assets
Capital allocations decisions NL & BE assets1) • •
Slide 32: Continued evidence for FSC yield compression
Continued evidence for FSC yield compression Yield compression since start of FSC Transformation bps Vier Meren - Sterrenburg Presikhaaf Eggert Kronenburg De Koperwiek NL Market Yield? 70 Shopping Belle-ile Ring Kortrijk BE Market Yield?) 60 32
Slide 33: In progress
Nivelles Kronenburg Waterloo Winkelhof Koperwiek Tilburg In progress
Slide 34: Relative performance since LifeCentral launch
Relative performance since LifeCentral launch Total Return Cumulative total shareholder return index; 7 February 2020 — 2 February 2023 150 /Peer 3 Peer 5 Peer 4 100 |, Wereldhave \Peer 1 Peer 2 Peer 6 50 Oo Q12020 @22020 Q32020 @42020 Q12021 Q22021 Q32021 Q42021 @12022 Q22022 @32022 Q42022 Q12023 Q
Slide 35: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Financing & Valuations 5. ESG 6. Management Agenda 7. Appendices Wereldhave w
Slide 36: Stable valuations, with higher yields offset by increase in market rents
Stable valuations, with higher yields offset by increase in market rents Value (€ m) Revaluation FY 2022 EPRA NIY (%) Country FY 2021 FY 2022 €m % FY 2021 FY 2022 Belgium 832 849 (3.3) (0.4%) 5.7% 6.2% Netherlands 843 876 (2.9) (0.3%) 6.5% 6.9% France 170 175, 0.5 0.3% 46% 47% Offices Belgium 94 100
Slide 37: Net LTV Target
Net LTV Target Net LTV 35-40% FY 2022 Target 37 Actions taken: * LifeCentral CAPEX reduced from € 350m to € 291m + Dividend at 71% of DRPS vs. 75-85% target * One additional disposal identified, see slide 31 Next steps to reach the LTV target of 35-40% + Last two French disposals + Retained earnings
Slide 38: Debt profile
Debt profile Q4 2021 Q4 2022 Covenants Comments Debt increased following FSC capital expenditure and , ‘) Interest bearing debt" (€) 817m 859m dividend payments Cost of debt increased following refinancings at Average cost of debt 2.3% 2.5% higher spreads, and risen benchmark rates Undrawn committed
Slide 39: Debt mix & expiry profile
Debt mix & expiry profile Q4 2021 Q4 2022 * Syndicated Revolving Credit Facility (‘(RCF’) refinanced with a new five year € 225m sustainability-linked RCF, pushing out the maturity to Q4 2027 * Green RCF ABN AMRO, originally maturing Q3 2024, refinanced with a new unsecured € 50m RCF maturing in Q4
Slide 40: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Financing & Valuations 6. Management Agenda 7. Appendices 40 Wereldhave
Slide 41: Maintaining our strong ESG position
Maintaining our strong ESG position ESG performance on sector-specific, climate and investor benchmarks and ratings w “ ’ B @r 9 consecutive years 982828220 91939192 I °° & “3, Serre ig CLIMATE A list 2022 BB B lil 7 consecutive rt) SUSTAINALYTICS MORNINGSTAR, ESG Risk Rating (= |@ 12.7 isk 4 years
Slide 42: Clear and ambitious ESG strategy
Clear and ambitious ESG strategy Our main commitments 1. Maintain GRESB 5-star rating 2. Reduce carbon emissions with 30% by 2030, and become Paris Proof by 2045 3. Mitigate physical climate risks by improving adaptation to heat stress and extreme rain showers 4. Increase our local impact with commu
Slide 43: Finalize Paris Proof Roadmaps per asset in 2023
Finalize Paris Proof Roadmaps per asset in 2023 30% COz reduction in 2030 and Paris Proof in 2045 on a portfolio level 43 Effect main measures vs 2030 + Paris Proof 14 12 s 8 fe) 1s) 2 g S08 \ iS 5 06 2 5 5 04 8 3 1s) 02 0.0 2020 2025 2030 2035 2040 2045 ——Shopping center (common + tenants) —==30% b
Slide 44: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Financing & Valuations 5. ESG 6. Management Agenda 7. Appendices Wereldhave 44
Slide 45: Management Agenda
Management Agenda Focus on Target 2022-2024 Current Status Focus on earnings & dividend growth 4-6% CAGR as of 2023 4-6% average growth as of 2023 Focus on Total Return Exceed 8% annualized Total Return (Levered) FY 2022: 9.0% levered total rewrn > Transformed 9 assets to FSC and started 4 additiona
Slide 46: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Financing & Valuations 5. ESG 6. Management Agenda 7. Appendices 46 Wereldhave
Slide 47: Company Profile December 2022
Pal a Company Profile December 2022 Number of retail assets 22 Average size 27,800 m? raeerge semanas 3.9 m Net loan-to-value ratio 42.4 % Occupancy shopping centers 96.8 % EPRA NIY shopping centers 6.4% WALT? 5.2 years Development pipeline?) €47m 1) Lease end date of shopping centers. Indefinite co
Slide 48: Portfolio split by country and type
Offices 5% Netherlands 44% Belgium 47% Retail Assets 95% France 9%
Slide 49: Ongoing LifeCentral Transformation Projects
Ongoing LifeCentral Transformation Projects Estimated Peters) Total Estimate Unlevered Planned Costs to capex . Investment to IRR Delivery 2023 Complete Vier Meren 31 15 - 9% 76% 2023 De Koperwiek 16 "1 - 7% 43% 2023 Kronenburg 15 4 10 7% 85% 2024 Other FSC transformations 13 5 2 >7% NA. 2023 & 2024
Slide 50: Tenant mix by category
Homeware & Services Other Household 1.0% 1.5% 9.5% Sports Fashion & 2.2% Accessoires Health & Beauty 31.6% 11.1% Special Goods & Others 3.4% Mixed-Use 12.7% Shoe & Leatherware 6.1% Multimedia & Food Electronics Travel & Finance Services14.8% 4.3% 1.8%
Slide 51: Tenant sales / footfall by country
34.3%36.1% 23.2% 17.7% 17.0% 15.1% 14.4% 13.7% 12.5% 9.1% 5.6% 4.3% 6.0% (0.7%) -3.5% (9.4%) -12.0% -19.1% -21.0% -39.7% Belgium France Netherlands Shopping centres FY 2020 H1 2021 FY 2021 H1 2022 FY 2022
Slide 52: Occupancy rates
Occupancy rates OR) EPRA Occupancy rate Shopping Centers 977% a 971% 1.2%) Belgium France The Netherlands Shopping centers MM Fy 2020 (FY 2021 (9) H12022 MM Fy 2022 62 Wereldhave
Slide 53: Footfall by country vs. market
33.0% 28.7% 29.3% 21.8% 22.7% 19.8% 18.3% 17.4% 16.2% 16.3% 13.2% 12.2% 11.3% (3.1%) (6.7%) (12.2%) (13.2%) (14.7%) 0.4% (17.4%) (22.8%) (28.0%) (33.5%) Belgium France Netherlands Shopping centres FY 2020 H1 2021 FY 2021 H1 2022 FY 2022 Market 2022
Slide 54: Breakdown of valuation results H2 2022
Breakdown of valuation results H2 2022 54 Belgium (0.4%) Netherlands Core portfolio France Offices Belgium Total Rent vs Yield HB Yield shift MB Market rent & other Wereldhave
Slide 55: EPRA NTA
EPRA NTA EPRA NTA Bridge: YE 2021 to YE 2022 (€ per share) (0.20) (140) (0.14 (014) 2173 EPRA NTA Direct result Indirect result Dividend Other EPRA NTA YE 2021 YE 2022 ss Wereldhave
Slide 56: EPRA Value metrics are defined in the EPRA BPR Guidelines
EPRA Value metrics are defined in the EPRA BPR Guidelines dated February 2022