Altarea Sca · EURONEXT:ALTA
Altarea Sca — Altarea Cogedim — H1 2015 Earnings Presentation
32 slides from Altarea Sca's earnings presentation, 2015
Slide 1: Altarea Cogedim 2015 Half-Year Results
\ ALTAREA COGEDIM 2015 HALF-YEAR RESULTS RETAIL RESIDENTIAL OFFICES AND HOTELS
Slide 2: Disclaimer
DISCLAIMER • This presentation has been prepared for general information purposes only, as a complement to the informations already released by Altarea Cogedim, which the lectors are kindly invited to refer to. It does not constitute an offer to sell or a solicitation of an offer to sell or exchange
Slide 3: Contents
CONTENTS INTRODUCTION P. 4 2015 HALF-YEAR ACHIEVEMENTS P. 7 FINANCE P. 16 CONCLUSION P. 23 APPENDICES P. 27 2015 HALF-YEAR RESULTS 3
Slide 4: Introduction
INTRODUCTION 2015 HALF-YEAR RESULTS 4
Slide 5: Half-Year Achievements
HALF-YEAR ACHIEVEMENTS Portfolio turnover Strengthened leadership in rail station retail (bid for Paris-Austerlitz) RETAIL Good operational peformance Strong sales growth (26% in volume, 20% in value terms) Agreement with SNI (~500 units under agreement and ~800 units under negotiation at
Slide 6: 2015 Half-Year Financial Results: Return to Growth
2015 HALF-YEAR FINANCIAL RESULTS RETURN TO GROWTH Real estate income (1) Consolidated income (2) Revenue €600.5 mil. +24.5% €724.7 mil. +19.5% Operating income €116.9 mil. +7.5% €104.8 mil. +2.9% RESULTS Consolidated FFO (3) €100 mil. +11.3% €89.8 mil. +7.3% FFO Group share €77.5 mil. +11.1% €67.3 m
Slide 7: 2015 Half-Year Achievements
2015 HALF-YEAR ACHIEVEMENTS 2015 HALF-YEAR RESULTS 7
Slide 8: Shopping Centers: Portfolio Rotation
SHOPPING CENTERS PORTFOLIO ROTATION • Continuation of the strategy of concentrating on premium assets • Disposal of non-core assets QWARTZ ACQUISITION OPENINGS DISPOSALS IN ITALY Casale Stezzano Pinerolo Milano Roma Assets sold (average value: ~€30 mil.) Northwest Paris / 165 shops Marque Avenue®, A
Slide 9: Rail Station Retail: Leadership in Traffic Retail
RAIL STATION RETAIL LEADERSHIP IN TRAFFIC RETAIL • Confirmed expertise • Return per m² among the highest in France PARIS-AUSTERLITZ: 4th BID WON LEADER IN RAIL STATION RETAIL IN PARIS Gare du Nord Renovation underway Gare de l’Est Opened in 2008 Paris-Montparnasse Large-scale modernization project
Slide 10: Shopping Centers: A Concentrated Portfolio
SHOPPING CENTERS A CONCENTRATED PORTFOLIO • Objectives set in 2010 have been achieved • Good performance of the main operational indicators AVERAGE VALUE OPERATIONAL PERFORMANCE ~€130 mil. +1.1% Tenant revenues (1) Benchmark (CNCC) -1.8% €97 mil. Occupancy cost ratio (2) 9.6% €50 mil. Change -20 bps
Slide 11: Property Development: Strong Recovery in All Sectors
PROPERTY DEVELOPMENT STRONG RECOVERY IN ALL SECTORS • Property development as a driver of value creation • Leveraging on the Group's multi-product offering to initiate major mixed-use programs (fast growing segment) GROWTH IN RESERVATIONS AND NEW ORDERS MAJOR MIXED-USE PROGRAMS Reservations (1) New
Slide 12: Residential: Strong Growth in Sales to Institutional Investors
R RESIDENTIAL ESIDENTIAL G STRONG ROWTH INSALES GROWTH SALES TO (+43% IN INSTITUTIONAL VOLUME) INVESTORS • An offering specially designed for institutional investors • A successfull strategy initiated few years ago for the major players (insurance companies, pension funds, etc.) THE SALES GROWTH DRI
Slide 13: Residential: Strong Recovery
RESIDENTIAL STRONG RECOVERY • Increased revenue driven by entry-level and midscale ranges (1) • Growth in operating cash flow due to volumes RESERVATIONS RESULTS Revenue €451.2 mil. +23% High-end (+5%) Operating cash flow €24.5 mil. +52% Entry-level and midscale % revenue 5.4% + 100 bps (+38%) Servi
Slide 14: Offices: Intense Activity in All Segments
OFFICES INTENSE ACTIVITY IN ALL SEGMENTS • H1 new orders: €233 million (+83%) on 5 programs (1) INVESTMENT LEASING SALE Signature of an OPL with Capgemini for Sale of the head offices of Sanofi Acquisition of the Pascal Towers Ivoire Tower (Lyon Gerland) Pasteur and Merial (Lyon) to Predica Off-plan
Slide 15: Offices: Results
OFFICES RESULTS • Stable H1 results not representive the 2015 trends TOULOUSE BLAGNAC RESULTS Net property income €6.6 mil. (property development) Fees (service provider) €8.7 mil. Share of equity method Associates (1) (investment) €1 mil. Tenant: Safran (regional head office spanning 269,000 ft² or
Slide 16: Finance
FINANCE 2015 HALF-YEAR RESULTS 16
Slide 17: Growth in Earnings
GROWTH IN EARNINGS • Rising income • Per share indicators do not reflect yet the recovery recorded at the operational level • Very significant improvement of the debt structure RESULTS INDICATORS PER-SHARE DEBT RE-PROFILING Real estate €116.9 mil. +7.5% Real estate FFO (1) €6.22/s. +3.9% €1.4 bill
Slide 18: Revenue and Operating Profit
REVENUE AND OPERATING PROFIT • Renewed growth of real estate activities • Negative contribution of the e-commerce business line REVENUE OPERATING PROFIT Shopping centers €96.8 mil. +2% Shopping centers €82.7 mil. Residential €450.8 mil. +22% Residential €24.5 mil. Offices €52.9 mil. +170% Offices €8
Slide 19: FFO and Net Profit
FFO AND NET PROFIT • Double-digit increase in the real estate FFO • Adjustment of the RDC value FFO CONSOLIDATED NET PROFIT -0.1 €100.0 mil. Change in (+11.3%) value of +2.5 €89.8 mil. financial Net borrowing costs (+7.3%) €89.8 mil. instruments €83.7 mil. €77.8 mil. +0.7 +37.9 Corporate (-10.6%) +2
Slide 20: Per-Share Indicators
PER-SHARE INDICATORS • Per share indicators do not reflect yet the growth recorded at the operational level • 8.5% FFO/NAV ratio PER SHARE FFO PER SHARE DILUTED GOING-CONCERN NAV(2) €6.22 €5.40 per share €5.46 per share (+3.9%) per share (-1.0%) €126.5 €129.8 -10.0 2.4 (-2.5%) +0.32 -0.38 4.3 Profit
Slide 21: Optimization of the Financing Structure
OPTIMIZATION OF THE FINANCING STRUCTURE • The Group sized a of very favorable market window to reprofile its debt structure IMPORTANT RESULTS ACHIEVED NEW HEDGING PROFILE (2) In €mil. 2 500 5,00% Net debt: €2.042 million €1.4 billion of new financing (1): 2 000 4,00% Average hedged rate: 1.04% ‒ 2
Slide 22: An Optimized Profile
AN OPTIMIZED PROFILE • Long duration, reduced cost • Long-term visibility • Very solid debt ratio COST OVER THE NEXT 6 YEARS A VERY SOLID FINANCING STRUCTURE €2.042 mil. Net debt +€270 mil. Duration 6.3 years Average spread for the existing debt: ~100 / 140 bps Average cost 2.15% Hedged nominal:
Slide 23: Conclusion
CONCLUSION 2015 HALF-YEAR RESULTS 23
Slide 24: Innovation: Development Driver
INNOVATION DEVELOPMENT DRIVER • Creation of a structure dedicated to innovation: AltaFuture • Assertion of Altarea’s leadership as a Connected Retail REIT ALTAFUTURE AN ASSET MANAGEMENT REVOLUTION SMART CITY THE IN SUPPORT TO THE DIGITAL DIGITAL ASSET MANAGEMENT FACTORY LOW CARBON FACTORY Expanded c
Slide 25: Pipeline: A Unique Potential of Growth
PIPELINE A UNIQUE POTENTIAL OF GROWTH • Through its multi-product offer, the expertise of its teams and its cross- organization, Altarea Cogedim has been able to build a unique pipeline projects by its size and quality • This pipeline founds the Group perspectives for the long-term Group’s consolida
Slide 26: Guidance
GUIDANCE Significant growth in 2015 income 2016 dividend > €10.00 2015 HALF-YEAR RESULTS 26
Slide 27: Appendices
APPENDICES 2015 HALF-YEAR RESULTS 27
Slide 28: Detailed Income Statement
DETAILED INCOME STATEMENT 6/30/2015 6/30/2014 (1) Change in value, Change in value, Funds from operations Funds from € millions estimated expenses TOTAL estimated expenses TOTAL (FFO) operations (FFO) and transaction costs and transaction costs Shopping centers 96.8 2% - 96.8 94.6 - 94.6 Online reta
Slide 29: Detailed Balance Sheet (1/2)
DETAILED BALANCE SHEET (1/2) € millions 6/30/2015 12/31/2014 NON-CURRENT ASSETS 4,239.1 3,940.6 Intangible assets 233.5 244.7 o/w Goodwill 128.7 128.7 o/w Brands 95.9 96.8 o/w Other intangible assets 8.9 19.2 Property, plant and equipment 9.8 10.6 Investment properties 3,532.5 3,163.6 o/w investment
Slide 30: Detailed Balance Sheet (2/2)
DETAILED BALANCE SHEET (2/2) € millions 6/30/2015 12/31/2014 EQUITY 2,155.6 2,169.2 Equity attributable to Altarea SCA shareholders 1, 180.0 1,249.5 Capital 191.2 191.2 Other paid-in capital 396.8 518.7 Reserves 538.9 425.2 Income associated with Altarea SCA shareholders 53.0 114.3 Equity attributab
Slide 31: Net Asset Value
NET ASSET VALUE GROUP NAV 6/30/2015 12/31/2014 published Change/ € millions Change €/share share € millions €/share Consolidated equity, Group share 1,180.0 94.3 1,249.5 99.9 Other unrealized capital gains 281.8 276.8 Restatement of financial instruments 22.2 87.8 Deferred tax on the balance sheet f
Slide 32: Altarea Cogedim
\ ALTAREA COGEDIM 2015 HALF-YEAR RESULTS RETAIL RESIDENTIAL OFFICES AND HOTELS