Hammerson Plc · LSE:HMSO
Hammerson — Investor Presentation (June 2017)
50 slides from Hammerson's investor presentation, Jun 27, 2017
Slide 1: Hammerson in France
Les Terrasses du Port, Marseille Hammerson in France 27 June 2017
Slide 2: Schedule for today
Schedule for today 01 Introduction Rebecca Patton – Head of Investor Relations Jean-Philippe Mouton – Managing Director, France Aurelie Siha – Finance Director, France Barthélémy Doat – Director of Operations, France 02 Italie Deux, Paris 13ème Vincent Sadé – Director of Investment & Asset Managemen
Slide 3: Introduction
01 Introduction Rebecca Patton – Head of Investor Relations Jean-Philippe Mouton – Managing Director, France Aurelie Siha – Finance Director, France Barthélémy Doat – Director of Operations, France
Slide 4: Hammerson: a leading pan-European retail destinations platform
Hammerson has a 61 European £10 billion leading shopping pan-European retail destinations platform 13 Countries 34% 21% Top 3 Market position in all chosen sectors 6% 9% 17% 13% 42% non-UK assets 2.2m UK shopping centres - £3.4bn sq ft retail space France - £2.1bn Ireland - £0.8bn 280m visitors UK r
Slide 5: Flagship assets across Europe
Bullring Dundrum Town Centre Les Terrasses du Port Brent Cross Birmingham Dublin Marseille London Westquay The Oracle Southampton Reading Bicester Village Italie Deux Oxford Paris Victoria Leeds Les Trois Fontaines Elliots Field Cyfarthfa Retail Park Cergy Rugby Merthyr Tydfil
Slide 6: Core pillars of strategy
Core pillars of strategy Dundrum, Dublin Victoria, Leeds Zweibrücken, Germany Focus on growing Create differentiated Promote financial consumer markets destinations efficiency and partnership Significant cities and catchments in Talented team cultivating retailer Prudent debt management and diverse
Slide 7: A strategy that delivers consistent income-focused returns
A strategy that delivers consistent income-focused returns EPS (pence) (1) DPS (pence) NAVPS (pence) (2) +8.6% +7.6% +4.1% 30 25 750 29.2 700 739 28 24.0 23 650 26 600 24 20 550 22 500 20 18 450 18 400 15 16 350 14 300 13 12 250 10 10 200 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 2
Slide 8: France: Economic momentum and supportive political result
France: Economic momentum and supportive political result Consumer spending and confidence Consumer relatively resilient through terrorism and political uncertainty Macron’s election and parliamentary majority is a positive result for the French economy Unemployment falling and further labour market
Slide 9: Hammerson in France
Hammerson in France 30 years in France 10 shopping centres 450,000 m2 space 1,000 tenants Our shopping centre assets Espace Saint-Quentin, Saint Quentin-En-Yvelines Place des Halles, Strasbourg 96.5% Occupancy Italie Deux, Paris Jeu de Paume, Beauvais Saint Sébastien, Nancy SQY Ouest, Saint Quentin-
Slide 10: A core asset strategy in France
A core asset strategy in France +58% Average asset size vs 2011(1) Focus on attractive and resilient prime centres +17% Leasing vs previous passing(2) 70%(1) Les Terrasses du Port Italie Deux Les Trois Fontaines Marseille Paris Cergy 62,700m2 61,500m2 64,000m2 Les Terrasses du Port 190 boutiques ope
Slide 11: Delivering success at Les Terrasses du Port, Marseille
Delivering success at Les Terrasses du Port, Marseille Exceptional trading performance 2016 net rental income growth 10% Sales CAGR +12% since opening Entry for new brands into France: Sensational customer experience Stunning new Apple store Unique catering with Mediterranean views PLUS App Enhancin
Slide 12: Creating differentiated destinations
Dedicated refurbishment 2012-2015, €30m Creating differentiated O’Parinor Italie Deux destinations Iconic placemaking Apple at Les Terrasses du Port R2 at Les Terrasses du Port Seamless multichannel experience Best in practice digital offer Amazon lockers PLUS app 12
Slide 13: Adding new international brands
Adding new international brands New international brands added in 2016 20% Retail offer renewed last 3 years 13
Slide 14: Future development opportunities in France
Future development opportunities in France Cergy, Les Trois Fontaines Italik, Italie Deux 28,000 m2 retail and catering extension as part of a 6,500 m² retail and leisure project to promote wider city centre project differentiated destination Co-ownership agreement, building permit and retail Retail
Slide 15: Italie Deux
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Slide 16: Italie Deux: a leading shopping centre in Paris with strong fundamentals
Italie Deux: a leading shopping centre in Paris with strong fundamentals Key facts • Opened in 1976 • 132 shops on 3 trading levels, totalling 61,500 m2 • MSUs : Printemps, FNAC, Carrefour, Zara, Go Sport, Tati, Darty, La Grande Récré • 1,500 car park spaces • Acquired in 1998 (100% ownership), reno
Slide 17: A long term strategy implemented since 1998 to grow the asset value
A long term strategy implemented since 1998 to grow the asset value 1992 1976 1998 2001 2004 2006 2007 2012/2013 2015/2018 Creation of Creation of Acquisition Heavy Food Cinema Carrefour Renovation Extension Grand GALAXY 2 by Hammerson renovation Court closes market Theatre opening Ecran 17
Slide 18: Customer profile
Customer profile A young, diversified and dynamic customer profile Paris resident Women Household Monthly Net Income 75% 59% €2,464/mois Average age Families 40 y.o. 41% Mode of transport 7% 38 % 50% Source SAD survey, 2013 18
Slide 19: Location and accessibility
Location and accessibility An iconic location in the heart of Paris benefitting from an outstanding accessibility Located in the heart of Paris – 13th arrondissement Strong and affluent catchment area with 765,500 residents (1) Iconic and well-known building amongst Parisians Excellent public transp
Slide 20: Retail competition
Retail competition A leading position in the South of Paris Main retail competition in central Paris 1. Beaugrenelle (50,000 m²) 2. Galeries Lafayette/ Printemps 3. Forum des Halles (80,000 m²) 4 4. Quatre Temps (139,000 m²) 2 3 1 Italie Deux 20
Slide 21: Notable tenants
Notable tenants A strong and diversified tenant mix Anchors Principales enseignes Restaurants 21
Slide 22: Interior redesign and refurbishment
Interior redesign and refurbishment The new identity triggered a positive shift to the tenant mix A renovated shopping centre… • Modern design with a new identity • Full refurbishment of ceilings, lighting and flooring • Redesign of seating and kids areas • New customer services Hammerson total inve
Slide 23: Extension project – ITALIK
Extension project – ITALIK An ambitious project to open the shopping centre on avenue d’Italie Opportunity • Create a modern and commercial façade for the shopping centre on a major axis • Opportunity to attract aspirational brands • Provide Italie Deux with a new dynamic and appeal to a wider shopp
Slide 24: Theatre opening
Theatre opening The 900-seat theatre will bring a notorious and unique cultural offer Opportunity • Opening of a 900-seat theatre located in the main entrance of the shopping centre • Enhance the merchandising mix of the site with a cultural offer to drive more footfall • Improve visibility of the s
Slide 25: Appendices
Appendices 25
Slide 26: Lower floor
Lower floor i Italie 2 - Paris ‘Niveau Bas Plan de Commercialisation Date : 04/11/15 Document non contractuel 22) ITALIEDEUX 26
Slide 27: Ground floor
Ground floor Document non contractuel Avenue d'Ttalie Hn Italie 2 - Paris ‘Niveau RDC Plan de Commercialisation Date : 04/11/15 22) ITALIE DEUX 27
Slide 28: Upper floor
Upper floor w a Italie 2 - Paris ‘Niveau Haut Plan de Commercialisation Date : 04/11/15 Document non contractuel 22) ITALIEDEUX 28
Slide 29: La Vallée Village
03 La Vallée Village Duncan Agar– Chief Operating Officer, Value Retail
Slide 30: A platform of considerable scale – a leading market position
A platform of considerable scale – a leading market position Value Retail - £4.1bn GAV Europe’s leading operator of luxury outlet villages Hammerson invested since 1988 Hammerson 40% ownership 19 Villages 180,000 m2 13 Growth through extensions to existing Villages Countries VIA Outlets - £1.0bn GAV
Slide 31: Why do outlets exist?
Why do outlets exist? Brands have surplus Image permission TBC stock and need an efficient means to deal with it that does not compromise their integrity or image 31
Slide 32: How does Value Retail service this need?
How does Value Retail service this need? The Value Retail Image permission TBC Villages provide a high quality sales environment for goods that are: Authentic surplus stock At least one year old Same season Sold at a 33% - 70% discount to full price 32
Slide 33: Value Retail is Europe's leading luxury outlet operator
Value Retail is Europe’s leading luxury outlet operator Value Retail was one of the first operators in the European market. Its first centre, Bicester Village, near Oxford, England, opened in 1995 Portfolio 9 Villages €5.1bn value Locations Proximity to Europe’s wealthiest cities Close to major tour
Slide 34: Categorisation of European outlet market
Categorisation of European outlet market The market can be broadly categorised by the customers it serves €30,000+ Value Retail International fashion and luxury brands €2,000–€10,000 Mainstream fashion brand outlets VIA Outlets Increasing sales densities €/sq m Low-end discount outlets <€2,000 34
Slide 35: What are the drivers of strong performance?
What are the drivers of strong performance? 2016 Total European tax refunded sales by nationality(1) Breadth of international visitors China 40% East Asia 23% Middle East 16% Russia 4% Growing attraction for India 3% retailers USA 1% Other 13% Brand and retail Outlet channel continues to grow in pop
Slide 36: La Vallée Village
La Vallée Village Opened in October 2000 120 brands 21,000m² GLA Excellent travel links, 35 minutes from Paris Footfall 6 million 3rd most visited cultural and leisure site around Paris (after Disneyland Paris and Domaine de Versailles) Visitors from 170 countries 36
Slide 37: O'Parinor
04 O’Parinor
Slide 38: O'Parinor: a key retail destination in the north of Paris
O’Parinor: a key retail destination in the north of Paris Key facts • Opened in 1974 • O’Parinor is one of the 10 largest shopping centres in France • Totalling 220 shops for 98,600 sqm • Carrefour hypermarket of 30,000 sqm • 12 MSUs : Primark, UGC, Toys‘R’us, Go Sport, Darty, Zara, H&M, Fnac, C&A,
Slide 39: Benefits from a large catchment and a strong local economy
Benefits from a large catchment and a strong local economy Seine Saint Denis department • 224,000 residents in primary catchment area • 1.3 million residents in total catchment area • 44% of population under 30 • 2nd economic hub in Seine Saint Denis department with 3,500 companies and a strong indu
Slide 40: O'Parinor customer profile
O’Parinor customer profile Customer profile Age and gender distribution • Family profile Over 65 0-20 5% − 1.6 children per family 0-20 55-64 20-24 20-24 11% − 49% of visitors are families 45-54 25-34 30% • 27% upper middle class groups 35-44 26% − Average monthly income per family €2,580 25-34 45-5
Slide 41: Notable tenants
Notable tenants BWAYa ak. KIABIKIDS §=FARA 7D) wee fred KOTTOM Toysfjus PRIMARK® AM GO MM
Slide 42: Interior redesign and refurbishment
Interior redesign and refurbishment Concept • Homogenisation and redesign of the existing centre and extension • Full renovation of ceiling and flooring • Implementation of new signage • Set up of new digital tools (directories, Clear Channel totems, IP network) • Creation of seating areas in the ma
Slide 43: Exterior renovation and creation of storage units
Exterior renovation and creation of storage units Concept • New consistent façade design with wooden features • Creation of retail and storage units on the former delivery way (behind the refurbished façade) totalling 1,000 m² • Implementation of car park guidance system to ease car parking and impr
Slide 44: Upgrading the catering offer
Upgrading the catering offer Concept • 2,000 m2 catering area in the extension part • 10 restaurants • Specific design for the zone • Open 7 days a week and in the evening Completed in October 2013 44
Slide 45: Introducing new brands to meet consumer demand
Introducing new brands to meet consumer demand The Primark effect • 5,550 m2 store • 3rd store opening in France • 1st store opening in Ile-de-France region Opened March 2014 +30% increase in the shopping centre footfall in first year following Primark opening 45
Slide 46: Enhancing the leisure offer
Enhancing the leisure offer UCG Multiplex cinema • 14-screen cinema • 2,600 seats • BREEAM Very Good • Best opening for a UGC multiplex in France Opened October 2014 955,000 tickets sold in 2016 vs. an initial target of 750,000 tickets 46
Slide 47: Appendices
Appendices 47
Slide 48: O'Parinor – Ground Floor
O’Parinor - Ground Floor - a re ety pesephe — Siena - YS PN | Held 48
Slide 49: O'Parinor – 1st Floor
O’Parinor —- 1st Floor 49
Slide 50: Disclaimer
This presentation contains certain statements that are neither financial results nor other historical information. These statements are forward-looking in nature and are subject to risks and uncertainties. Actual future results may differ materially from those expressed or implied by these statement