Slide 1: Carmila 2022 Annual Results Presentation
Carmila 2022 Annual Results Presentation 1
Slide 2: Key Highlights, Activity Overview, Financial Performance, Conclusion
1 Key Highlights MARIE CHEVAL Chair and Chief Executive Officer 2 Activity Overview SEBASTIEN VANHOOVE Deputy Chief Executive Officer 3 Financial Performance PIERRE-YVES THIRION Chief Financial Officer 4 Conclusion MARIE CHEVAL Chair and Chief Executive Officer 2
Slide 3: Successful first year of "Building Sustainable growth"
1 Key highlights 2 3 4 Successful first year of “Building Sustainable growth” Strong start to new plan Ahead of schedule on financial targets 2022 retailer sales above 2019 level: 102% of 2019 level for the full year, 106% in December 2022 Strong leasing activity: 96.5% financial occupancy rate, new
Slide 4: Already hitting 2023 targets
1 Key highlights 2 3 4 Already hitting 2023 targets 2021 Capital Markets Day Targets As of today 10% annual recurring EPS growth (2022-2023) +26% Recurring EPS growth in 2022 €200M of disposals by end 2023 €240M of disposals1 Dividend at least €1 per share, in cash, 75% payout of recurring earni
Slide 5: Outlook 2023 and investment strategy
1 Key highlights 2 3 4 Outlook 2023 and investment strategy Continuing asset rotation as planned €100 million of additional disposals by end 2024 New share buyback €20 million share buyback program to take advantage of current market valuation €1.57 recurring earnings per share expected in 2023 Inde
Slide 6: A leader in the sustainable transformation of local regions
1 Key highlights 2 3 4 A leader in the sustainable transformation of local regions Exemplary non-financial Net zero climate commitment reporting Target: Net zero scope 1 and 2 emissions Target: 100% of assets BREEAM certified by 2030 by 2025, 100% very good by 2030 On track to reach emissions target
Slide 7: Finding a new balance in retail after the health crisis
1 Key highlights 2 3 4 Finding a new balance in retail after the health crisis E-commerce sales Retailers investing in physical stores (BtoC, including marketplaces, Q2 2018 =100) 160 The comeback of physical stores vs. e- commerce, Figaro 20 January 2022 140 120 “[Brands] are gaining market share w
Slide 8: The Carmila platform: successful pivot of the mix-merch
1 Key highlights 2 3 4 The Carmila platform: successful pivot of the mix-merch More Health and beauty and less fashion Carmila’s vision on mix-merch % of rental income (end-2022) The target merchandising mix for a typical Carmila centre1 % of rental income Culture, gifts Health and beauty and leisur
Slide 9: Carmila centres have a key role to play in the current environment
1 Key highlights 2 3 4 Carmila centres have a key role to play in the current environment • Hypermarkets: the “first” discount format • Food transition for all Carrefour z • Hypermarket at the heart of a multi-format and omnichannel ecosystem Convenient, • The right assets and mix-merch for each cat
Slide 10: A successful year for Carmila's three growth initiatives
1 Key highlights 2 3 4 A successful year for Carmila’s three growth initiatives Omnichannel €1.4M incubator Contribution to Recurring earnings in 2022 €1.5M Rent secured at end-2022 €1.1M Contribution to EBITDA1 in RETAIL 2022 DEVELOPMENT €30M incremental annual contribution to recurring earnings fr
Slide 11: Key Highlights, Activity Overview, Financial Performance, Conclusion
1 Key Highlights MARIE CHEVAL Chair and Chief Executive Officer 2 Activity Overview SEBASTIEN VANHOOVE Deputy Chief Executive Officer 3 Financial Performance PIERRE-YVES THIRION Chief Financial Officer 4 Conclusion MARIE CHEVAL Chair and Chief Executive Officer 11
Slide 12: Retailer sales higher than in 2019
1 2 Activity Overview 3 4 Retailer sales higher than in 2019 2022 retailer sales : Invasion 102% of 2019 level of Concerns around Ukraine energy situation 2022 footfall : 93% 110% of 2019 level 105% 105% 106% 104% 104% 102% 103% 99% 99% 97% 98% 96% 93% 95% 94% 91% 91% 92% 91% 91% 94% 93% 88% January
Slide 13: Strong commercial momentum in 2022
1 2 Activity Overview 3 4 Strong commercial momentum in 2022 Positive reversion Good level of new business signed in Positive reversion High level of 2022 occupancy 854 +1.5% 96.5% Long-term leases signed Above previous Financial occupancy rate in 2022 passing rents (+20 bps vs. end-2021) No change
Slide 14: The right mix of retailers for each Carmila centre
1 2 Activity Overview 3 4 The right mix of retailers for each Carmila centre Healthcare Purchasing Power Restaurants Clothing, Sportwear Beauty Gifts The pivot to a new mix-merch has helped Carmila centres to outperform1 1. footfall vs. sector +4pts in France (% of 2019 footfall); and +1pts in Spain
Slide 15: Innovation and omnichannel services for customers and retailers
1 2 Activity Overview 3 4 Innovation and omnichannel services for customers and retailers BEFORE THE VISIT DURING THE VISIT AFTER THE VISIT Influencers & social media Specialty Leasing & Client data platform Pop-up Stores 272 active influencers €15M of rent 4.7M clients in our database from temporar
Slide 16: Always investing and transforming our centres
1 2 Activity Overview 3 4 Always investing and transforming our centres HEALTH AND MID- RESTRUCTURING DEVELOPMENT SIZED STORES Laval in France Puget Diner in Langueux Holly’s Normal in Pau Lescar Puget-sur-Argens food court Vertuo in Athis-Mons • Transformation of centre and • New food courts, mainl
Slide 17: Updating the plan for major projects
1 2 Activity Overview 3 4 Updating the plan for major projects Montesson Sartrouville FIVE MAJOR PROJECTS Nantes Orléans €200M CAPEX (vs. €550M previously) Beaujoire • No building work currently underway Toulouse Labège • First projects in pipeline to begin in 2024 at the earliest Antibes • Redesign
Slide 18: Green Capex: €10M a year from 2023 to meet targets
1 2 Activity Overview 3 4 Green Capex : €10M a year from 2023 to meet targets Electric charging Implementing additional measures to reduce stations energy consumption -20% Energy consumption this winter 100% of Carmila • Heating, ventilation and air-conditioning: Centers to be equipped Investments r
Slide 19: Key Highlights, Activity Overview, Financial Performance, Conclusion
1 Key Highlights MARIE CHEVAL Chair and Chief Executive Officer 2 Activity Overview SEBASTIEN VANHOOVE Deputy Chief Executive Officer 3 Financial Performance PIERRE-YVES THIRION Chief Financial Officer 4 Conclusion MARIE CHEVAL Chair and Chief Executive Officer 19
Slide 20: Increase in the like-for-like valuation of assets
1 2 3 Financial Performance 4 Increase in the like-for-like valuation of assets Valuation of portfolio as of 31 December 2022 Like-for-like change 31 Dec. 2022 (vs 31 Dec. 2021) €6,166M (vs 31 Dec. 2021) Market value -0.8% +1.0% Total (reported) Total (like-for-like) €4,391M -2.2% +1.0% €1,430M +4,0
Slide 21: Confident in the valuation of the portfolio
1 2 3 Financial Performance 4 Confident in the valuation of the portfolio Net Potential Yield of portfolio as of 31 December 2022 6,37% Reasonable appraisal assumptions • Net Rental Income CAGR : 2.1% • Exit cap rate : 6.3% Average capitalisation rate • Discount rate : 7.6% 6.37% • Net Initial Yield
Slide 22: Carmila centres are affordable for retailers
1 2 3 Financial Performance 4 Carmila centres are affordable for retailers Occupancy cost ratio Affordable average rents 10.5% in 2022, -50bps vs. 2019 €260 per square metre Explained by pivot of the mix-merch Cost control Manageable level of indexation +4% from Q1 2023 (cap at 3.5% Energy efficienc
Slide 23: Record level of net rental income
1 2 3 Financial Performance 4 Record level of net rental income Net Rental Income (€M) Net rental income up +16% vs. 2021 • Organic rental growth +4,2%, of which indexation +3,2% • Net impact of acquisitions and disposals is 333 290 335 €-2 million 271 • Net rental income from COVID period: positive
Slide 24: Recurring earnings +26% vs. 2021
1 2 3 Financial Performance 4 Recurring earnings +26% vs. 2021 2021 2022 €M Net rental 289.9 335.2 Net rental income +16% vs. 2021 income Overhead costs -52.8 -51.8 Reduction in cost base vs. 2021 Equity-accounted +1.7 +2.9 companies EBITDA 238.8 287.2 EBITDA +20% vs. 2021 Net financial Limited incr
Slide 25: Recurring Earnings Per Share: rebound in 2022
1 2 3 Financial Performance 4 Recurring Earnings Per Share: rebound in 2022 Recurring Earnings Per Share 2022 Performance Recurring EPS +26% vs. 2021 at €1.56 2021 €1.24 Faster normalisation of rent collection than expected +26% Positive indexation effect on rents Of which €0.06 of income from Organ
Slide 26: 2022 Dividend and Outlook for 2023
1 2 3 Financial Performance 4 2022 Dividend and Outlook for 2023 DIVIDEND 2023 OUTLOOK €1.17 per share in €1.57 recurring EPS cash to be proposed* expected in 2023 in 2023 (+17% vs. previous vdividend) v effect on rents Positive indexation Confident on rent collection Dividend Policy: Impact from di
Slide 27: Increase in EPRA Net Tangible Assets per share
1 2 3 Financial Performance 4 Increase in EPRA Net Tangible Assets per share EPRA NTA 2022 Change in EPRA Net Tangible Assets per share at 31 December 2022 – fully diluted +1.56 -1.0 €25.26 / share +0.05 +0.16 -0.04 25.26 +3% vs. end 24.54 FY 2022 2021 2021 Share Other recurring Like for like divide
Slide 28: Strong Balance Sheet
1 2 3 Financial Performance 4 Strong Balance Sheet End-2021 End-2022 Committed to BBB S&P rating Net debt (€M) 2,323 2,204 GAV1 (€M) 6,214 6,166 High level of confidence on portfolio valuation EPRA LTV 37.4% 35.8% assumptions (including RETTS) Significant headroom vs. bank EPRA LTV 39.2% 37.6% coven
Slide 29: Strengthened liquidity position and funding structure
1 2 3 Financial Performance 4 Strengthened liquidity position and funding structure Carmila Maturity Profile*: End-December 2022 New term loan signed in July 2022: New €550M sustainability linked term loan (5 year maturity, 2 year extension option), E3M+180bps BBB rating with a stable outlook from S
Slide 30: Carmila capex and investment outlook
1 2 3 Financial Performance 4 Carmila capex and investment outlook ENERGY EFFICIENCY MAINTENANCE & RESTRUCTURING €10 million /year €50 million /year (of which €40 million on restructuring projects) MAJOR PROJECTS CARMILA RETAIL DEVELOPMENT Zero net investment from 2023 €200M in total investment, sta
Slide 31: Asset rotation and development: More active management of the portfolio
1 2 3 Financial Performance 4 Asset rotation and development: More active management of the portfolio for greater flexibility SUCCESSFUL FIRST PHASE USE OF PROCEEDS OF DISPOSALS €240 million of disposals agreed or Development closed €24 million acquisition of Rosaleda Shareholder return in 2022 €30
Slide 32: Financial wrap-up
1 2 3 Financial Performance 4 Financial wrap-up €6.2bn 35.8% +26% Gross Asset Value 2022 recurring EPS (+1.0% like-for-like LTV1 growth vs. 2021 vs. end-2021) €1.17 Dividend policy €1.57 Dividend per share in Cash dividend, 75% recurring EPS cash proposed2 in payout expected in 2023 2023 Ahead of sc
Slide 33: Key Highlights, Activity Overview, Financial Performance, Conclusion
1 Key Highlights MARIE CHEVAL Chair and Chief Executive Officer 2 Activity Overview SEBASTIEN VANHOOVE Deputy Chief Executive Officer 3 Financial Performance PIERRE-YVES THIRION Chief Financial Officer 4 Conclusion MARIE CHEVAL Chair and Chief Executive Officer 33
Slide 34: A successful first year of the plan: "Building Sustainable Growth"
1 2 3 4 Conclusion A successful first year of the plan: “Building Sustainable Growth” Record performance and operational excellence Rebound in retailer sales post COVID, high occupancy, commercial activity supported by transformed assets, pivot to new retailers and ecosystem of services Ahead of sch
Slide 35: Q&A session
Q&A session 35
Slide 36: Appendix
Appendix CARPILA
Slide 37: Next Tower ramp-up: on track to meet 2026 targets
Next Tower ramp-up: on track to meet 2026 targets €1.5M On average 110 ca. €13M of Annualised rent antennas in operation secured* as of end in France 2022 Capex a year and Spain** Infrastructure and Only in France so far 5G are two powerful 90 antennas end 2022 investment trends 170 at end 2023 Laun