Icade Sa · EURONEXT:ICAD
Icade Sa — Investor Day (November 2017)
67 slides from Icade Sa's investor day presentation, Nov 27, 2017
Slide 1: Investor Day: Icade's strategic outlook
INVESTOR DAY Monday, November 27, 2017 Icade’s strategic outlook
Slide 2: Introduction
Four-star hotel project (Orly-Rungis business park, Val-de-Marne) INTRODUCTION André MARTINEZ Chairman of the Board of Directors
Slide 3: Introduction: Icade is delivering its strategic plan
Introduction ICADE IS DELIVERING ITS STRATEGIC PLAN... Two years after announcing our plan, we are delivering, as announced, growth and performance Icade is now a company: With a simplified shareholding structure, with two major shareholders: Caisse des Dépôts (39%) and Crédit Agricole Assurances
Slide 4: Ahead of schedule on its action plan
Introduction ... AND IS AHEAD OF SCHEDULE ON ITS ACTION PLAN ● An action plan for 2016 that has been fully implemented ● 2017: a year going particularly well ● A clear, profitable growth-oriented roadmap for 2019 and beyond ● Favourable markets that will support and boost the company’s performance A
Slide 5: Table of contents
1. Icade: update two years after the strategic plan announcement TABLE OF 2. Commercial Property Investment: dynamic & development pipeline CONTENTS 3. Healthcare Property Investment: evolution & outlook 4. Icade Promotion: favorable market conditions & performance objectives 5. 2017-2019 outlook
Slide 6: Icade: update two years after the strategic plan announcement
Ôm project (Issy-les-Moulineaux, Hauts-de-Seine) 1. ICADE: UPDATE TWO YEARS AFTER THE STRATEGIC PLAN ANNOUNCEMENT Olivier WIGNIOLLE Chief Executive Officer
Slide 7: A look back at our ambitions
1. Icade: update two years after the strategic plan announcement A LOOK BACK AT OUR AMBITIONS 1. 2. Be a top-performing Focus on real estate our leadership integrated positions to player deliver growth & « Best in Class » results 2016 & 2017 RESULTS AND THE OUTLOOK FOR 2018 CONFIRM THE RELEVANCE OF
Slide 8: A unique business model supporting value creation
1. Icade: update two years after the strategic plan announcement A UNIQUE BUSINESS MODEL SUPPORTING VALUE CREATION PROPERTY INVESTMENT 79% offices Thanks to Icade Promotion, €7.8bn (1) portfolio COMMERCIAL the Commercial Property 1 million sq.m land bank DEVELOPMENT Investment Division’s land Thanks
Slide 9: Implementation of the strategic plan: where do we stand?
1. Icade: update two years after the strategic plan announcement IMPLEMENTATION OF THE STRATEGIC PLAN: WHERE DO WE STAND? ● 2016 priorities have been delivered and this will also be the case for 2017 ● We are ahead of schedule on our action plan ● Market conditions are favourable for our three busin
Slide 10: Halfway through its roadmap, Icade is ahead of schedule
1. Icade: update two years after the strategic plan announcement HALFWAY THROUGH ITS ROADMAP, ICADE IS AHEAD OF SCHEDULE Exit Services Business 100% Development: back to profitability and deliver synergies with investment 66% Flight to quality on Business parks combined with an operational plan to r
Slide 11: Significant achievements in the past 2 years
1. Icade: update two years after the strategic plan announcement SIGNIFICANT ACHIEVEMENTS IN THE PAST 2 YEARS ● Commercial Property Investment: €760m (1) in investments, €1bn in disposals since May 2015, €1.7bn (2) pipeline, financial occupancy significantly up (+5.2 pps (3)), CYG marketing plan and
Slide 12: 2017 priorities: where do we stand?
1. Icade: update two years after the strategic plan announcement 2017 PRIORITIES: WHERE DO WE STAND? Ramp up the implementation of Icade Continue acquisitions 1 4 Promotion’s roadmap and launch new development projects IP well on track: revenue up 32% as of 09/30/2017 ANF, Origine, Gambetta, Pulse R
Slide 13: Favourable market conditions: offices
1. Icade: update two years after the strategic plan announcement FAVOURABLE MARKET CONDITIONS FOR OUR 3 BUSINESS AREAS OFFICES Robust leasing activity in the Paris region (1) 9M 2017 take-up: 1.8 million sq.m (+2%) (3) 50 transactions > 5,000 sq.m (+13% in terms of floor area) Immediate office
Slide 14: Favourable market conditions: healthcare
1. Icade: update two years after the strategic plan announcement FAVOURABLE MARKET CONDITIONS FOR OUR 3 BUSINESS AREAS HEALTHCARE High number of investors in the French market but few sale-and-leaseback transactions Slack secondary market in France since the beginning of 2017: €260m (short-term an
Slide 15: Favourable market conditions: property development
1. Icade: update two years after the strategic plan announcement FAVOURABLE MARKET CONDITIONS FOR OUR 3 BUSINESS AREAS PROPERTY DEVELOPMENT Residential market: the rebound is confirmed In Q3 2017, 135,900 building permits were issued, i.e. +9.7% YoY Housing orders up 5.3% (1) vs 9 first months o
Slide 16: CSR & innovation for business: objectives and results
1. Icade: update two years after the strategic plan announcement CSR & INNOVATION FOR BUSINESS: AMBITIOUS OBJECTIVES & WELL ORIENTED RESULTS OBJECTIVES ANNOUNCED PROGRESS AS OF JUNE 2017 ENERGY TRANSITION AND -40% in CO2 intensity for Commercial Property PRESERVATION OF RESOURCES -23% achieved Inves
Slide 17: 2016 & 2017 results confirm the relevance of our plan
1. Icade: update two years after the strategic plan announcement 2016 & 2017 RESULTS CONFIRM THE RELEVANCE OF OUR PLAN AND… ● Highly complementary and secure sources of cash flow which allow us to increase the volume of our development pipeline ● Very positive impact of the Grand Paris Express and O
Slide 18: Commercial Property Investment: dynamic & development pipeline
Urssaf (Pont de Flandre business park – Paris, 19th district) 2. COMMERCIAL PROPERTY INVESTMENT: DYNAMIC & DEVELOPMENT PIPELINE Emmanuelle BABOULIN Member of the Executive Committee in charge of the Commercial Property Investment Division
Slide 19: Drivers of value creation
2. Commercial Property Investment: dynamic & development pipeline DRIVERS OF VALUE CREATION: DYNAMIC OPERATIONAL ASSET MANAGEMENT: OCCUPANCY RATES AND NET RENTAL INCOME STRONG ASSET ROTATION FOR OPTIMISED CAPITAL ACCELERATING THE IMPLEMENTATION OF THE DEVELOPMENT PIPELINE DESIGNING THE REAL ESTATE S
Slide 20: Occupancy rate optimisation
2. Commercial Property Investment: dynamic & development pipeline OCCUPANCY RATE OPTIMISATION OBJECTIVES ANNOUNCED IN NOVEMBER 2015 PROGRESS AS OF SEPTEMBER 2017 BUSINESS Increase in the financial occupancy rate: COMMERCIAL PARKS +5 pps by 2018, to 89% Financial occupancy rate of 89.1% PROPERTY IN
Slide 21: Strong asset rotation
2. Commercial Property Investment: dynamic & development pipeline STRONG ASSET ROTATION CORE + OR VALUE ADD ACQUISITIONS DISPOSALS: CAPITAL GAINS AND OPTIMISATION From May 30, 2015 to September 30, 2017 From May 30, 2015 to September 30, 2017 Asset acquisitions May-December 2015 Acquisitions total
Slide 22: Core+ and value add investments
2. Commercial Property Investment: dynamic & development pipeline CORE+ AND VALUE ADD INVESTMENTS Total acquisitions generating income immediately: €456.2m (incl. space under preliminary purchase agreement) ORSUD BUILDING PARISSY BUILDING PONANT BUILDING (A, C, E, F, G) PONANT D BUILDING in Gentilly
Slide 23: Core+ and value add investments: off-plan acquisitions
2. Commercial Property Investment: dynamic & development pipeline CORE+ AND VALUE ADD INVESTMENTS Total off-plan acquisitions: €359.0m GO SPRING BUILDING (1) GAMBETTA BUILDING (1) EKO ACTIVE BUILDING (1) in Nanterre, in Paris, in Marseille, “BREEAM Very Good” “BREEAM Very Good” and “BREEAM Very good
Slide 24: ANF: immediate source of cash flow and development pipeline
2. Commercial Property Investment: dynamic & development pipeline ANF: AN IMMEDIATE SOURCE OF CASH FLOW AND A DEVELOPMENT PIPELINE ANF IMMOBILIER’S KEY FIGURES AS OF 06/30/2017 ICADE DIVERSIFIES ITS COMMERCIAL PROPERTY (STRATEGIC ASSET PORTFOLIO) PORTFOLIO OUTSIDE THE PARIS REGION Other (hotels) 4%
Slide 25: Development pipeline: significant completions in 2016 and 2017
2. Commercial Property Investment: dynamic & development pipeline DEVELOPMENT PIPELINE: SIGNIFICANT COMPLETIONS IN 2016 AND 2017… Main completions (Le V, Le Millénaire 4, Défense 4/5/6) Défense 4/5/6 (Nanterre) - View of the façade and lobby before and after renovation LE V (Aubervilliers) Le Millén
Slide 26: €1.7bn development pipeline in Greater Paris area
2. Commercial Property Investment: growth path and development pipeline … WHICH WILL CONTINUE IN 2018/2021: €1.7BN AT THE HEART OF THE GREATER PARIS AREA ORIGINE - NANTERRE PULSE – PORTES DE PARIS Q3 2020 - Q3 2021 BUSINESS PARK PARC DES PORTES DE PARIS Q4 2018 €500m €128m €442m 65,000 sq.m 28,700 s
Slide 27: Projects as of 09/30/2017: attractive risk premium
2. Commercial Property Investment: dynamic & development pipeline PROJECTS (1) AS OF 09/30/2017: A VERY ATTRACTIVE RISK PREMIUM (+230 BPS) Expected Yield on cost Total Estimated date of Floor area rent based on invest. (3) Project name Type of works Type of property Location completion (sq.m) (€m) f
Slide 28: Value creation from the development pipeline
2. Commercial Property Investment: dynamic & development pipeline VALUE CREATION TO BE ACHIEVED THANKS TO THE DEVELOPMENT PIPELINE AS OF 09/30/2017 (In €bn) 2.2 0.5 1.3 1.7 0.4 Appraised value before the project Development capex (1) Total investment Appraised value after completion VALUE CREATION
Slide 29: Origine: prime location close to Grand Paris Express hub
2. Commercial Property Investment: dynamic & development pipeline ORIGINE: A PRIME LOCATION CLOSE TO A GRAND PARIS EXPRESS HUB Buildings owned by Icade Less than a 5-minute walk from the Nanterre-Préfecture station, with immediate access to the Nanterre-La Folie station (lines A, E, L, U, M1, M15,
Slide 30: Origine: very significant value creation potential
2. Commercial Property Investment: dynamic & development pipeline ORIGINE: A VERY SIGNIFICANT VALUE CREATION POTENTIAL Description Office building with a hybrid wood and concrete structure Architects: Partnership between Maud Caubet and Quadrifiore Total leasable floor area: 65,000 sq.m Park
Slide 31: Greater Paris and 2024 Olympics: double opportunity
2. Commercial Property Investment: dynamic & development pipeline GREATER PARIS AND 2024 OLYMPICS: A DOUBLE OPPORTUNITY FOR ICADE ● Greater Paris and 2024 Paris Olympics THE OLYMPIC GAMES AND THE GREATER PARIS PROJECT, A double effect which will strengthen transport links in the North of Paris A BOO
Slide 32: Real Estate 3.0 (1/2)
2. Commercial Property Investment: dynamic & development pipeline REAL ESTATE 3.0: ICADE AT THE FOREFRONT OF MARKET TRENDS (1/2) MAISONS DES START’UP BUSINESS CENTRE COWORKING SPACE Portes de Paris business park Portes de Paris business park 5 completions in 2017 Completed in November 2015 Compl
Slide 33: Real Estate 3.0 (2/2)
2. Commercial Property Investment: dynamic & development pipeline REAL ESTATE 3.0: ICADE AT THE FOREFRONT OF MARKET TRENDS (2/2) SMART ROOM HOTEL FACILITIES IN THE BUSINESS PARKS 300 ROOMS AVAILABLE TO THE BUSINESS PARKS’ USERS Orly-Rungis business park Refurbishment of the Le Monaco building Orly-R
Slide 34: Outlook 2018/2020
2. Commercial Property Investment: dynamic & development pipeline OUTLOOK 2018/2020 Focus on leasing activity and occupancy rates Strong asset rotation: asset disposals, potential joint ventures and continuation of the acquisition plan Integration of ANF Immobilier and delivery of the development pi
Slide 35: Healthcare Property Investment: evolution & outlook
Elsan West Atlantic Healthcare Division (Saint-Herblain, Loire-Atlantique) 3. HEALTHCARE PROPERTY INVESTMENT: EVOLUTION & OUTLOOK Françoise DELETTRE Member of the Executive Committee in charge of the Healthcare Property Investment Division CEO of Icade Santé
Slide 36: Drivers of value creation
3. Healthcare Property Investment: evolution & outlook DRIVERS OF VALUE CREATION: CAPITALISING ON OUR LEADERSHIP POSITION WHILE CONTINUING ACQUISITIONS BENEFITING FROM THE GROWTH OF THE ASSET CLASS LAUNCHING PROPERTY DEVELOPMENT PROJECTS DIVERSIFYING INTO ADJACENT ASSET CLASSES • 36
Slide 37: Ambitious strategic plan in a mature market
3. Healthcare Property Investment: evolution & outlook AN AMBITIOUS STRATEGIC PLAN IN A MATURE MARKET 2015 Strategic Plan June 30, 2015 June 30, 2017 Strengthening our leadership Portfolio worth €2.4bn excl. duties Portfolio worth €3.7bn excl. duties position by promoting growth €1.4bn on a Group sh
Slide 38: Icade Santé: unique business model, the market leader
3. Healthcare Property Investment: evolution & outlook ICADE SANTÉ: A UNIQUE BUSINESS MODEL, THE MARKET LEADER... Key factors which differentiate Icade Santé, Largest healthcare property portfolio in France Integrated range of ● A long-term investor alongside institutional investors solutions (Icade
Slide 39: In a favourable market
3. Healthcare Property Investment: evolution & outlook ... IN A FAVOURABLE MARKET The market continues to exhibit a strong positive trend The healthcare market is still favourable, favourably impacting healthcare real estate: resulting in real estate investments: ● Ageing population in Europe A shif
Slide 40: Acquisitions reinforcing its leadership position
3. Healthcare Property Investment: evolution & outlook ACQUISITIONS REINFORCING ITS LEADERSHIP POSITION 06/30/2015 on a full-consolidation basis (Icade share 56.5%) 06/30/2017 on a full-consolidation basis (Icade share 56.6%) 72 facilities €2.4bn excl. duties 97 facilities €3.7bn excl. dutie
Slide 41: Counterparty risk under control
3. Healthcare Property Investment: evolution & outlook COUNTERPARTY RISK UNDER CONTROL ● Triple net leases for a term of 12 years ● A close-knit relationship with healthcare partner groups ● Regular reviews of operators’ performance, etc. Healthcare group ● Coupled with ratio analysis for each facil
Slide 42: Healthcare real estate: emergence of a full-fledged asset class
3. Healthcare Property Investment: evolution & outlook HEALTHCARE REAL ESTATE: EMERGENCE OF A FULL-FLEDGED ASSET CLASS RESILIENT YIELDS COMPARED TO OTHER ASSET CLASSES An asset class with an active secondary market A HISTORICALLY HIGH PREMIUM OVER THE FRENCH 10-YEAR GOVERNMENT BOND in France and Eur
Slide 43: Development pipeline: completions as soon as 2018
3. Healthcare Property Investment: evolution & outlook DEVELOPMENT PIPELINE: COMPLETIONS AS SOON AS 2018 4 ongoing major development projects for close to €250m (Yield on Cost of 6.7% as of June 30, 2017) including 3 due to be completed in 2018 with annual rent of €13m Croix du Sud private hospital
Slide 44: Icade Santé: high-potential adjacent markets
3. Healthcare Property Investment: evolution & outlook ICADE SANTÉ: HIGH-POTENTIAL ADJACENT MARKETS ICADE SANTÉ’S FUTURE EXPANSION In just a decade, from 2007 to 2017, Icade Santé has become the leader in healthcare real estate Into the 1st (MSO, FRC, MHE) both in France and Europe long-term care me
Slide 45: Partnership with Korian
3. Healthcare Property Investment: evolution & outlook PARTNERSHIP WITH KORIAN: PROPERTY DEVELOPMENT & INVESTMENT Promising partnership with Korian, the industry leader in France Integrated solutions Comprehensive Investor and Property Developer solutions in synergy with Icade Promotion, with whic
Slide 46: 2018 outlook: international expansion?
3. Healthcare Property Investment: evolution & outlook 2018 OUTLOOK: INTERNATIONAL EXPANSION? European markets 1st healthcare real estate market in Europe Icade Santé’s core market A leading position Germany France Emerging market, with the first sale-and-leaseback deals Spain Italy Market continues
Slide 47: Icade Santé: potential future growth drivers
3. Healthcare Property Investment: evolution & outlook ICADE SANTÉ: POTENTIAL FUTURE GROWTH DRIVERS Continue investing in healthcare properties in France ● In the medium and long term, €2.5bn to €3.5bn worth Driving tomorrow’s growth of properties remain to be sold by French operators via sale-and-l
Slide 48: Outlook 2018-2020
3. Healthcare Property Investment: evolution & outlook OUTLOOK 2018-2020 Continue expanding the property portfolio to reinforce our leadership position Extend the development pipeline Explore diversification by investing in nursing homes (EHPAD) and seniors’ residences with services and going intern
Slide 49: Icade Promotion: favorable market conditions & performance objectives
Pulse (Portes de Paris business park – Saint-Denis, Seine-St-Denis) 4. ICADE PROMOTION: FAVORABLE MARKET CONDITIONS & PERFORMANCE OBJECTIVES Maurice SISSOKO Member of the Executive Committee in charge of the Property Development Division
Slide 50: Drivers of value creation
4. Icade Promotion: favorable market conditions & performance objectives DRIVERS OF VALUE CREATION: DISCIPLINED, PROACTIVE CAPITAL MANAGEMENT SYNERGIES WITH THE COMMERCIAL PROPERTY INVESTMENT AND HEALTHCARE PROPERTY INVESTMENT DIVISIONS A COMPREHENSIVE AND INNOVATIVE RANGE OF SOLUTIONS DIGITAL INNOV
Slide 51: A roadmap based on growth and performance
4. Icade Promotion: favorable market conditions & performance objectives A ROADMAP ALSO BASED ON GROWTH AND PERFORMANCE Land portfolio targets by region and by product STEPPED-UP EXPANSION Strengthen our development teams OF OUR LAND PORTFOLIO Develop our partnership strategy Enhance our bra
Slide 52: Our main achievements so far (1/2)
4. Icade Promotion: favorable market conditions & performance objectives OUR MAIN ACHIEVEMENTS SO FAR (1/2) Financial performance with specific objectives: €1.3bn of revenue, target capital of €250m, FINANCIAL maximum gearing (1) ratio of 1, ROE >12%, WCR optimised. Overall, capital allocation opt
Slide 53: Our main achievements so far (2/2)
4. Icade Promotion: favorable market conditions & performance objectives OUR MAIN ACHIEVEMENTS SO FAR (2/2) Proof of the relevance of the synergies between Property Development and Healthcare Property Investment A partnership designed to build more than 15 facilities by 2024 on behalf of Korian
Slide 54: Optimisation and return on equity, a core priority
4. Icade Promotion: favorable market conditions & performance objectives OPTIMISATION AND RETURN ON EQUITY, A CORE PRIORITY 2015 2016 2017 outlook ECONOMIC REVENUE (1) €956m €1,005m c. €1.2bn CURRENT ECONOMIC OPERATING MARGIN (2) 5.5% 5.5% NET PROFIT/(LOSS) ATTRIBUTABLE TO THE GROUP €19m €21m Expect
Slide 55: Reinforced synergies with the property investment divisions
4. Icade Promotion: favorable market conditions & performance objectives REINFORCED SYNERGIES WITH THE PROPERTY INVESTMENT DIVISIONS ● Two complex contracts have already been awarded: Latécoère (Toulouse): development of 830 residential units on 55,000 sq.m with €145m of potential revenue Poisso
Slide 56: Innovative range of products successful in major competitions
4. Icade Promotion: favorable market conditions & performance objectives AN INNOVATIVE RANGE OF PRODUCTS SUCCESSFUL IN THE MAJOR COMPETITIONS L’ATELIER DE L’ARSENAL located at Place Mazas in Paris (75012), winner of the Reinvent the Seine award Project jointly developed by Icade (70%) and REI Habi
Slide 57: Innovative solutions: commercial segment
4. Icade Promotion: favorable market conditions & performance objectives AN INNOVATIVE RANGE OF SOLUTIONS: STRONG BUSINESS ACTIVITY IN THE COMMERCIAL SEGMENT SKY-LINE in Toulouse (Haute-Garonne), 3 buildings at the base of the Borderouge metro station: SKY-LINE SKY-LINE in A:Toulouse (Haute-Garonne
Slide 58: Successful diversification into public facilities
4. Icade Promotion: favorable market conditions & performance objectives AN INNOVATIVE RANGE OF SOLUTIONS: SUCCESSFUL DIVERSIFICATION INTO PUBLIC FACILITIES CAMPUS YNOV, Ivry (Val-de-Marne) A 19,000-sq.m development project, Ecole du numérique et de l’audiovisuel, sporting equipment, hall of resid
Slide 59: CSR and innovation at the core of our products
4. Icade Promotion: favorable market conditions & performance objectives CSR AND INNOVATION AT THE CORE OF OUR PRODUCTS ● An ambitious DIGITAL roadmap Project development: use of field and market data (Kelfoncier, LINA, etc.) Design and construction: BIM, habx Marketing: client accounts, paper
Slide 60: Outlook 2018-2020
4. Icade Promotion: favorable market conditions & performance objectives OUTLOOK 2018–2020 Rebuilding the commercial project portfolio & Backlog Continued improvement in financial performance: ROE, WCR and operating margin Optimised production and marketing costs Accelerated digital transformation T
Slide 61: 2017-2019 outlook
RTE’s regional headquarters (Les Girondins development zone, Lyon Gerland, Rhône) 5. 2017-2019 OUTLOOK Olivier WIGNIOLLE Victoire AUBRY Chief Executive Officer Member of the Executive Committee in charge of Finance, IT and Legal
Slide 62: Strong NCCF and NAV 2015-2017E performance
5. 2017-2019 outlook STRONG NCCF AND NAV 2015-2017E PERFORMANCE... Steady income growth Steady NAV progression Jump in revenues (+15% in 2017e compared to 2015) Yield compression for Healthcare Investment properties: -60 bps to 6.1% (2) between 12/31/2015 and 06/30/2017 Positive performance ac
Slide 63: Double-digit share price TSR and NAV TSR
5. 2017-2019 outlook ... HAS RESULTED IN A DOUBLE-DIGIT SHARE PRICE TSR AND NAV TSR ● Share price TSR: estimate based on the share price at the end of November above 19% ● NAV TSR is expected to be above 10% by the end of the year +19.5% +15.7% +19.5% +12.7% >10% 2017 share price TSR (1) Share price
Slide 64: Growth objectives for property investment
5. 2017-2019 outlook SUMMARY OF OUR GROWTH OBJECTIVES FOR PROPERTY INVESTMENT 2.0 11.4 9.2 1.2 0.5 The portfolio should reach €11.4bn by the end of 2018, with: (1.5) A volume of investments in line with the original plan, but to be reached as early as the end of 2018 A favourable market that mak
Slide 65: Growth objectives for property development
5. 2017-2019 outlook SUMMARY OF OUR GROWTH OBJECTIVES FOR PROPERTY DEVELOPMENT 2018 REVENUE FORECAST 2015/2016 ROE FOR THE PROPERTY DEVELOPMENT (in €bn) DIVISION AND 2017/2018 FORECAST 1.300 15.0% 1.200 Project management 437 support 12.0% Net profit/(loss) 1.005 attributable to the Group 0.955 340
Slide 66: Conclusion
5. 2017-2019 outlook CONCLUSION ● Strong dynamic for the office portfolio: asset management, projects under development, asset rotation & acquisitions ● Effects of the action plan on business parks: increased occupancy rates and increase in portfolio value ● Further expansion of the Healthcare Prope
Slide 67: Conclusion: NCCF growth, dividend policy and guidance
5. 2017-2019 outlook CONCLUSION 2017: growth around 8% NCCF compared to the “around 7%” announced last July DIVIDEND Based on the change in NCCF per share POLICY CONTINUED POSITIVE IMPACTS OF THE PLAN IN 2018 2018 GUIDANCE: MONDAY, FEBRUARY 12, 2018 • 67