Wereldhave N.V. · EURONEXT:WHA
Wereldhave — Investor Day (October 2015)
55 slides from Wereldhave's investor day presentation, Oct 22, 2015
Slide 1: Capital Markets Day
CAPITAL MARKETS DAY 22 & 23 October 2015
Slide 2: List of Attendees
LIST OF ATTENDEES ANALYSTS INVESTORS WERELDHAVE Ruud van Maanen ABNAMRO Corné van Zeijl Actiam PM Dirk Anbeek CEO Sam Warwood BAML Rutger van der Lubbe APG AM Robert Bolier CFO Jonathan Kownator Goldman Sachs Nikita Johal Blackrock Riemer Smink CIO Geoffrey Marsan Green Street Adv Sander Bunck BMO G
Slide 3: Program
PROGRAM Thursday 22 October LE HAVRE 1 17:00 Welcome DIRK ANBEEK 2 17:05 Tour Côté Seine OLIVIER MOURRAIN 18:00 Cushman & Wakefield ANTOINE GRIGNON PARIS STRASBOURG 18:30 Q3 results and strategy update DIRK ANBEEK CÔTÉ SEINE 18:50 Wereldhave France ERIC DAMIRON 1 3 19:30 Bus to hotel 20:30 Drinks an
Slide 4: Guest Speaker Antoine Grignon
GUEST SPEAKER ANTOINE GRIGNON Cushman & Wakefield
Slide 5: Integration Acquisitions France and Netherlands
INTEGRATION ACQUISITIONS FRANCE AND NETHERLANDS
Slide 6: Integration French Platform Completed
INTEGRATION FRENCH PLATFORM COMPLETED 2014 2015 ACTIONS Q4 Q1 Q2 Q3 Q4 Portfolio integration Wereldhave Back office IT systems Wereldhave Recruitment Unibail-Rodamco on-site personnel transferred to Wereldhave Recruit key staff: Operations director Q1-15 Finance director Q1-15 Country
Slide 7: Dutch Acquisition: First Impressions
DUTCH ACQUISITION: FIRST IMPRESSIONS Particular Occupancy at 91.4% at closing, compared to 92.3% at Leasing & announcement1 focus on 6 re-tenanting centres Key account relationships established, quick wins identified, first results expected Q4-2015/Q1-2016 Facility management contracts to be t
Slide 8: Strategy Update
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Slide 9: Dominant Convenience Shopping Centres
DOMINANT CONVENIENCE SHOPPING CENTRES Gain market share in the micro environment 1. 2. 3. 4. BETWEEN 20,000 AND DOMINANT IN ITS TAILORED TO THE MICRO FOOD ANCHORED 50,000M² CATCHMENT ENVIRONMENT m² GLA per shopping centre Average GLA split1 Catchment area >100,000 Socio-demographic adaptation inhabi
Slide 10: Benefits of Convenience Shopping
BENEFITS OF CONVENIENCE SHOPPING 1. 2. 3. RESILIENT EFFECT DRIVES FOOTFALL THROUGH THE CYCLE FROM E-COMMERCE Footfall # per week1 The Netherlands2 Wereldhave categories in portfolio3 Food 20% Food 30.000 110 market Services 8% 27.500 F&B 4% Internet resilient 32% Fashion & accessoires 22% 20.000 Hea
Slide 11: Focus on Dominant Convenience Centres
FOCUS ON DOMINANT CONVENIENCE CENTRES AVERAGE SHOPPING CENTRE SIZE FOR RETAIL PLAYERS IN CONTINENTAL EUROPE (GLA IN M²) 44,176 26,871* 26,687 19,788 16,625 14,879 12,602 5,690 1 2 Source Company information, based on retail assets only for all peers Notes 1. Incl. Corio and recent disposals, based o
Slide 12: Shopping Centre Management Model Aimed at Continuous Improvement
SHOPPING CENTRE MANAGEMENT MODEL AIMED AT CONTINUOUS IMPROVEMENT Improve More + tenant mix attractive & F&B More customers + + + Higher Who stay Invest -/- ROI + footfall longer + + + And spend more Raise Higher rents turnover 12
Slide 13: New, Refreshed and Refurbished Portfolio
NEW, REFRESHED AND REFURBISHED PORTFOLIO* Dutch refurbishment program (2013 – 2016) 98% Refurbishment of Kronenburg, Eggert, Etten-Leur, De Roselaar and Koningshoek in final stages 85% Winkelhof and De Koperwiek to be upgraded in the short term 66% Redevelopment of Itis (2014) Successfully ref
Slide 14: Portfolio Opportunities
PORTFOLIO OPPORTUNITIES Completion of Retail Park Tournai €18m @ 6.5-7.0% yield on cost BELGIUM Study extension of Belle-Ile Occupancy improvement Kortrijk and Genk from current 88.7% and 80.9% Refurbish and re-tenanting F&B area into ‘restaurant world’ FINLAND Occupancy improvement from c
Slide 15: Wereldhave France
WERELDHAVE FRANCE Positioning Wereldhave France
Slide 16: Key People
KEY PEOPLE ERIC DAMIRON – COUNTRY MANAGER OLIVIER MOURRAIN - DIRECTOR OF OPERATIONS Experience Experience: June 2015 Wereldhave France Jan. 2015 Wereldhave France 2012 - 2015 Corio France, COO & CEO 2013 - 2014 Unibail Rodamco, Mfi AG, 2005 - 2012 Strateo Consulting, Director/Owner Financial integra
Slide 17: Wereldhave France
WERELDHAVE FRANCE Dedicated teams for each shopping centre: creating a direct line to the retailer Transparency of information: Specific website for retailers: eg retail news, marketing plans and SC performance PARTNER FOR Annual reports on facility management containing: RETAIL BRANDS Rea
Slide 18: Economic Growth Has Been the Driver of Retail Sales in France
ECONOMIC GROWTH HAS BEEN THE DRIVER OF RETAIL SALES IN FRANCE Moderate outlook after 6 years Retail trade (%) Change in employment of zero 50% CORRELATION growth 3.1% BETWEEN 2.6% EMPLOYMENT 1.8% 1.8% 1.8% GROWTH AND 1.1% 1.3% 1.0% 0.8% 0.7% 0.6% 0.5% RETAIL TRADE 0.2% 0.2% 0.3% 0.2% 0.2% 0.1% 0.1%
Slide 19: Focus on Dominant Convenient Centres
FOCUS ON DOMINANT CONVENIENT CENTRES TOP 40 CITIES , SHOPPING CENTRES >50,000M² & WH CENTRES CONSIDERATIONS 40 cities in France with a population >100,000 inhabitants 1 2 Catchment areas > 100,000 inhabitants are considered sizeable enough to support one or multiple mid size shopping centres 1 1 T
Slide 20: Six Dominant Shopping Centres
SIX DOMINANT SHOPPING CENTRES Saint Sever – Rouen Mériadeck - Bordeaux Côté Seine- Argenteuil (Paris) 45,400m², 9.8m visitors 37,600m², 10.6m visitors 29,000m², 5.8m visitors (excl. Les Passages) Rivetoille – Strasbourg Docks Vauban - Le Havre Docks 76 - Rouen 28,400m², 5.8m visitors 53,500m², 5.4m
Slide 21: Achievements So Far
ACHIEVEMENTS SO FAR Management team complete as per 1 October 2015 ORGANISATION Staff fully operational as per 1 January 2016 Shopping centre team up and running Business plans in place for all shopping centres OPERATIONS Wereldhave took over all mandates and contracts Marketing tools im
Slide 22: New PittaRosso Store in Mériadeck
NEW PITTAROSSO STORE IN MÉRIADECK 22
Slide 23: French Management Agenda 2016
FRENCH MANAGEMENT AGENDA 2016 Footfall growth in all centres Implement community and retail management OPERATIONS Decrease service charges by 2% Increase specialty leasing by €200k Improve occupancy to 92.5-93.0% by end of 2016 / LfL 100bps above indexation LEASING New anchor tenants in
Slide 24: Organisation Complete as per Q4-2015
ORGANISATION COMPLETE AS PER Q4-2015 1 COUNTRY MANAGER 1 Key people Back 7 1 office* Eric Damiron Country manager 2 DIRECTOR OF 3 LEASING 4 FINANCE OPERATIONS 1 DIRECTOR 1 1 2 DIRECTOR Olivier Mourrain Director of Technical & project Senior leasing Accounting, Operations 1 2 2 management manager con
Slide 25: Operations
OPERATIONS Focus on events driving footfall and sales IMPROVE FOOTFALL IN ALL Improve visibility by developing signage & directories CENTERS Use customers’ feedback to improve customer satisfaction IMPLEMENT Develop local management skills to improve our partnerships with tenants and local i
Slide 26: Leasing
LEASING Improve occupancy to 92.5-93.0% by end of 2016 IMPROVE Return to long term occupancy level of 97% OCCUPANCY Increase pop-up stores to test new concepts New anchor tenants to be signed at 3 shopping centres INTRODUCE NEW Aimed at footfall increase and LfL improvement ANCHOR TENANTS
Slide 27: Key Account Management
KEY ACCOUNT MANGEMENT TOP 25 TENANTS CROSS BORDER OPPORTUNITIES 1 H&M 14 FOOT LOCKER 2 E.LECLERC 15 MARIONNAUD 3 AUCHAN 16 TOYS R US 4 SEPHORA 17 NEW LOOK 5 CAMAIEU 18 YVES ROCHER 6 MANGO 19 LA GRANDE RECRE 7 JULES 20 HOLLISTER 8 ZARA 21 MIM 9 PROMOD 22 NEW YORKER 10 ESPRIT 23 GO SPORT 11 CELIO 24 H
Slide 28: Finance
FINANCE Dedicated IT systems & tools Efficient back office IMPLEMENTATION PLANNING & CONTROL Alignment between finance and business CYCLE Continuous monitoring of and finance involvement in projects and investments as from project initiating until finalisation 2015 2016 Strict debtor contr
Slide 29: Development
DEVELOPMENT TIMELINE PROJECTS H2-15 2016 2017 IMPROVE INDOOR CLIMATE Increase customers’ experience, dwell time and spend by improving the indoor climate PREPARATION WH WORKS Create better commercial possibilities for the common area INTRODUCTION OF A NEW ANCHOR TENANT Heads of terms soon to b
Slide 30: Docks Vauban: Indoor Climate & New Anchor
DOCKS VAUBAN: INDOOR CLIMATE & NEW ANCHOR 2 1 2 30 2 2 2 1 INTRODUCTION OF A NEW ANCHOR TENANT 2 IMPROVE INDOOR CLIMATE Heads of terms soon to be signed Install new entrance doors Opening planned for Q4-2017 Increase customer experience, dwell time and spend by Total unit will amount to >6
Slide 31: Mériadeck, Les Passages: New Anchor
MÉRIADECK, LES PASSAGES: NEW ANCHOR CURRENT ENVISAGED CREATION OF TWO NEW MAJOR UNITS Current condition Poor lay-out High vacancy mainly due to the departure of Darty (3,000m²) 2 2 Redevelop layout to create two mayor units: St. Sernin entrance 1 New anchor tenant / international retailer for a
Slide 32: Saint Sever: Shopping Centre Upgrade
SAINT SEVER: SHOPPING CENTRE UPGRADE CURRENT ENVISAGED REORGANIZE THE VERRERIE AREA Current condition 0 0 Lay-out of the Verrerie area can be optimised Visibility and access to the cinema needs improvement 1 Tenant mix and occupancy improvement potential Improve footfall streams, create food c
Slide 33: Ground Floor
GROUND FLOOR CURRENT ENVISAGED 33
Slide 34: First Floor
FIRST FLOOR CURRENT ENVISAGED 34
Slide 35: Conclusion
CONCLUSION 1. 2. 3. 4. TEAM IN PLACE TARGETS 2016 - 2015 NRI BUSINESS PLANS LFL 100BPS > INDEXATION LEASING TEAM STABILISED IN PLACE INCREASE OCCUPANCY TO OPERATIONAL AS FROM AT €46M 92.5% TO 93.0% MAPIC 2015 unchanged 35
Slide 36: Property Tour
PROPERTY TOUR COTE SEINE wh BIENY ENUE , male
Slide 37: Côté Seine
CÔTÉ SEINE Shopping centre data Main tenants GLA total centre 28,900m² BREEAM Excellent for Year of construction 2002 asset & outstanding Year of renovation 2010 for management GLA owned Wereldhave 16,200m² Parking spaces 1,350 Ownership Wereldhave 100 % Number of shops 65 Number of visits p/a 5.8 m
Slide 38: Côté Seine
CÔTÉ SEINE COMPETITIVE OVERVIEW CATCHMENT AREA Medium wage per household (in K€) 10.8% 22,243 21,302 19,218 France Primary area Catchment area Age distribution Catchment area versus France Argenteuil France average 10 min drive time Competition >75 5.4% 8.8% PARKING FACILITIES MEANS OF TRANSPORT 60
Slide 39: Côté Seine: Map of the Ground Floor
CÔTÉ SEINE MAP OF THE GROUND FLOOR d’Espargn Marina KIKO Optical Caisse San Prospect e Prospect Prom Coquine Miss Camieu Save Louis Prospect femme Pion Nail Bar La Générale Prospec Waffle D’Optiqu Celio t Factory e Jules Prospect Daarjeeli ng Tout Claire’s Compte Fait Club Sandwic Sergent Courir Maj
Slide 40: Côté Seine: Map of the 1st Floor
CÔTÉ SEINE MAP OF THE 1ST FLOOR Côté Sacs Body Corbeill minute Optic Côté Histoire e d’Or 2000 Sun d’Or Decimas Photo Le Jeff de manège Bruges enchant é Prospec t 40
Slide 41: Côté Seine
CÔTÉ SEINE ACTION PLAN HIGHLIGHTS OF THE TOUR Active rotations of underperforming performing tenants First floor Franck Provost instead of Sergio Bossi Tati & Décimas opened in Q4-2014 Club Sandwich instead of Lal’s Café Kiabi acquired in H1-2015 Corbeille d’Or opened in H1-2015 (trans
Slide 42: Property Tour
PROPERTY TOUR ’ ‘ JR ™ ~ | MANGO DOCKS VAUBAN
Slide 43: Docks Vauban
DOCKS VAUBAN Shopping centre data Main tenants GLA total centre: 53,500m² BREEAM Excellent for Asset & Year of construction: 2009 Outstanding for GLA owned Wereldhave: 53,500m² Management Ownership Wereldhave: 100% # of parking spaces: 2,171 Number of visits p/a: 5.4m Number of shops: 45 Ratio visit
Slide 44: Docks Vauban
DOCKS VAUBAN COMPETITIVE OVERVIEW CATCHMENT AREA Medium wage per household (in K€) +5.3% 21,302 19,218 19,467 Le Grand Havre Grand Cap Gonfreville Océane Espace Coty City centre Vauban France Primary area Catchment area Age distribution Catchment area versus France Le Grand Havre France average >75
Slide 45: Docks Vauban: Map of the Ground Floor
DOCKS VAUBAN MAP OF THE GROUND FLOOR Prospect Marionnau Lili & Jade Footlocker Acuitis G-Star DPAM Promod Prospect Okaidi d Brice Jules Prospect Carador Prospect De Neuville Adidas Prospect SFR Formul’ Carrnet Levi’s Quicksilver ERAM Micromani Vol P. de pain a Memphis WOK GRILL Babilou MIYAKI Prospe
Slide 46: Docks Vauban: Indoor Climate & New Anchor
DOCKS VAUBAN: INDOOR CLIMATE & NEW ANCHOR 2 1 2 46 2 2 2 1 INTRODUCTION OF A NEW ANCHOR TENANT 2 IMPROVE INDOOR CLIMATE Heads of terms soon to be signed Install new entrance doors Opening planned for Q4-2017 Increase customer experience, dwell time and spend by Total unit will amount to >6
Slide 47: Docks Vauban
DOCKS VAUBAN COMPLEMENTARY ACTION PLAN HIGHLIGHTS OF THE TOUR Active rotation of underperforming performing tenant Catchment area: 89% of customers < 20min travel time Pizza del Arte to former O’Paradis unit Train station: 5 min walk City centre: 15 -20 min walk Seek extension of key ten
Slide 48: Property Tour Rivetoile
PROPERTY TOUR RIVETOILE
Slide 49: Rivetoile
RIVETOILE Shopping centre data Main tenants GLA total centre: 28,400m² BREEAM Very Good for Asset Year of construction: 2008 & Management (to GLA owned Wereldhave: 28,400m² improve in 2016) Ownership Wereldhave: 100% # of parking spaces: 1,800 Number of visits p/a: 5.8m Number of shops: 85 Ratio vis
Slide 50: Rivetoile
RIVETOILE COMPETITIVE OVERVIEW CATCHMENT AREA Medium wage per household (in K€) +34% 24,469 19,218 16,865 France City area Catchment area Age distribution Catchment area versus France Strasbourg France average >75 6.9% 8.8% 10 min drive time Competition 60 - 74 10.4% 13.6% PARKING FACILITIES MEANS O
Slide 51: Rivetoile: Map of the Ground Floor
RIVETOILE MAP OF THE GROUND FLOOR Terrace Terrace La Pizza Sen Myrtille De Nico Sushi Ciboulett La Pizza e Minute LPB Sinequanon Helixir Body Tim Kookai Mise Kiko Grand De Nico Alice e ber au Verrines Optical What Articles I AM Swarovsk land Green Faller & Delice time De Paris i Vapeurs Helixir Paul
Slide 52: Rivetoile: Map -1 Floor
RIVETOILE Shampoo Stradivariu s Sketchers Prospect Bershka Bizzbee Orange Bouygues Telecom San Marina Adidas Originals Jules Prospect Carnet de Vol Master Case MAP -1 FLOOR Moa Prospect Oysho Okaidi Andre Vacant d Calzedonia Marionnau WF Waffle Prospect Factory Courir Histoire d’Or Grain de CIC Mali
Slide 53: Rivetoile
RIVETOILE ACTION PLAN HIGHLIGHTS OF THE TOUR Benefit from new tenants Hema & Mango Ground floor Strong replacements of Darty & Armand Thierry Cinema next-door (1.7m tickets) Improve offer of the adjacent units High performing book store Buffalo Burger recently signed Pro-active tenan
Slide 54: Contact Details
CONTACT DETAILS PRESS IINVESTORS & ANALYSTS Richard Beentjes Jaap-Jan Fit Richard.beentjes@wereldhave.com Jaapjan.fit@wereldhave.com T +31 20 702 78 34 T +31 20 702 78 43 Investor.relations@wereldhave.com www.wereldhave.com 54
Slide 55: WERELUDHAVE
F ¥y WERELUDHAVE