Altarea Sca · EURONEXT:ALTA

Altarea Sca — Altarea — FY2020 Earnings Presentation

52 slides from Altarea Sca's earnings presentation, February 2021

1. Slide 1: 2020 Annual Results

   2020 ANNUAL RESULTS February 2021

2. Slide 2: Disclaimer

   Disclaimer This presentation has been prepared for information purposes only and is intended to supplement other information published by Altarea, to which readers are encouraged to refer. It is not, and must not be interpreted as a solicitation, recommendation or offer to purchase, sell, exchange o

3. Slide 3: Summary

   SUMMARY 1. URBAN ENTREPRENEUR 2. OPERATIONAL PERFORMANCE 3. FINANCIAL PERFORMANCE 4. CONVICTIONS Résultats annuels 2020 3

4. Slide 4: Urban entrepreneur

   1. Urban entrepreneur HYPERION – Bordeaux (33) 4

5. Slide 5: Altarea absorbs the impact of the health crisis

   PART 1 Altarea absorbs the impact of the health crisis An outstanding team ENTREPRENEUR URBAN The health crisis has underlined the strength of Altarea’s model Short term impacts absorbed Revenues at €3,056 m (-1.7%) FFO at €230.3 m (-21.4%) Risk management and preserved financial strength Decrease i

6. Slide 6: More committed than ever

   PART 1 More committed than ever ENTREPRENEUR URBAN CUSTOMER RELATIONSHIP COMMITMENT TO EMPLOYEES ENVIRONMENTAL COMMITMENT TO AND SOCIAL SHAREHOLDERS COMMITMENT Annual results 2020 6

7. Slide 7: A company designed to support urban transformation

   PART 1 A company designed to support urban transformation ENTREPRENEUR URBAN RICHELIEU – Paris (75) Annual results 2020 7

8. Slide 8: Urban transformation: a vast and growing market

   PART 1 Urban transformation: a vast and growing market ENTREPRENEUR The health crisis has accelerated real URBAN estates infrastructures obsolescence and emphasized their need for transformation Consolidated pipeline 1 €19.0 bn of potential value 550 projects 4.3 m of sqm (1) Pipeline excluding the

9. Slide 9: Operational performance: Residential

   2. Operational performance: Residential LES LUCIOLES – Savigny-le-Temple (77)

10. Slide 10: Altarea's teams demonstrated high agility in managing the health crisis

    PART 2 Altarea’s teams has demonstrated high agility in managing the health crisis January Mid-March Beginning of May Mid-July RESIDENTIAL Beginning of the year Lockdown Exit from lockdown 2nd part of the year Business conducted Halt in production and Implementation of the Maintaining the post in li

11. Slide 11: Altarea has sized the demand for institutional investors

    PART 2 Altarea has sized the demand for institutional investors A shift towards institutional investors RESIDENTIAL New orders in €m (incl. taxes) +2% Residential as the most 3,353 resilient asset class 3,278 2,917 2,636 SO HO – Asnières sur Seine (92) 2,286 1,417 Individuals 60% 33% Swift decision-

12. Slide 12: Growth in results despite health crisis

    PART 2 Growth in results despite health crisis Growth in operating income Steady profit margin (7.4% of revenue) Revenue RESIDENTIAL Operating income in €m €2,407 m, +5.4% +4.1% Notarised sales: €177 m an outstanding €170 m (7.4% of achievement (7.4% of revenue) revenue) €3.7 bn, +14% Volume CHOCOLA

13. Slide 13: Market share gains thanks to a multibrand strategy

    PART 2 Market share gains thanks to a multibrand strategy Pipeline Backlog RESIDENTIAL €12.8 bn €4.0 bn +5% 49,500 units Selling 18,000 units, target confirmed (vs. 12,000 units in 2020) PETRAEA – Reuil-Malmaison (92) Architect : WILMOTTE Annual results 2020 13

14. Slide 14: Operational performance: Retail

    2. Operational performance: Retail L’AVENUE 83 – La Valette-du-Var (83)

15. Slide 15: Operations disrupted by the health crisis

    PART 2 Operations disrupted by the health crisis Mid-March Mid-May End of November Full lockdown Progressive reopening Partial closures & curfew An impact depending on retail format Footfall Tenants’ revenues -26% -18% RETAIL Retail Parks outperformance THIAIS VILLAGE – Thiais (94) Rent collection r

16. Slide 16: Net rents: an all-in cost of -€29.3 m in Group share

    PART 2 Net rents: an “all-in” cost of -€29.3 m in Group share Rent collection rate: 77% Rent relief Rent relief without counterpart with counterparts -€8.1 m -€11.2 m Rent relief without counterpart VSB, railway stations retailers 2.1 months of waived rents Rent relief with counterparts Doubtful +2.

17. Slide 17: Portfolio value adjustment: -11% in Group share

    PART 2 Portfolio value adjustment: -11% in Group share A joint ownership Asset's appraisal value Additional impairment impairment 2/3 rate effect On a selected 56% scope of assets 1/3 rent effect Assets under management Group share RETAIL €5.0 bn €2.8 bn Value adjustment -11% in Group share (-€351 m

18. Slide 18: Strong conviction on specific retail format

    PART 2 Strong conviction on specific retail format Gare Paris-Austerlitz Administrative authorization granted 56% Regional shopping centres A strong interest destination areas from retailers Travel retail RETAIL natural footfall Upcoming launch, opening in 2024 Retail parks an effective price/produc

19. Slide 19: Redevelopment of commercial areas: Altarea – Carrefour partnership

    PART 2 Redevelopment of commercial areas: Altarea – Carrefour partnership A shared vision Full reconversion of 25 hectares on 3 commercial sites surrounded by urbanisation RETAIL in Nantes, Sartrouville, Flins/Aubergenville Natural surfaces multiplied by 5 up to 25% of open land and promote biodiver

20. Slide 20: Capitalise on Altarea's platform of expertise

    PART 2 Capitalise on Altarea’s platform of expertise Urban logistic Increase volume of asset Solving the last mile under management delivery issue Altarea is both a An essential urban seller and / or a Third-part Infrastructure buyer of retail Partnerships assets Complex RETAIL REUILLY – Paris (75)

21. Slide 21: Operational performance: Business property

    2. Operational performance: Business property RICHELIEU – Paris (75)

22. Slide 22: Altarea, 1st developer in business property in France

    PART 2 Altarea, 1st developer in business property in France Pipeline Comprehensive product range 62 projects Multi-tenant offices Grand Paris Headquarters €5.0 bn Logistics centres Regional gateway cities Strong conviction on of potential value Hotels product offer Campuses Schools A significant se

23. Slide 23: 2020 deliveries in line with the Group strategy

    PART 2 2020 deliveries in line with the Group strategy Headquarters in Paris area RICHELIEU – Paris (75) ENTREPÔT XXL LIDL – Nantes (44) XXL Logistic platforms and campuses PROPERTY BUSINESS in regional urban areas KOSMO STUDIO – Neuilly (92) CONVERGENCE – Rueil-Malmaison (92) CAMPUS ORANGE LUMIÈRE

24. Slide 24: New projects across all product range and every regions

    PART 2 New projects across all product range and every regions Regional Logistic cities platforms Pipeline of 7 projects 6 news 600 000 sqm off-plan sales « development signed and HEXAHUB – Occitanie JOLIMONT – Toulouse (31) investment » Paris area 3 DPM contracts PROPERTY BUSINESS signed 1 operatio

25. Slide 25: Ongoing deliveries will contribute to 2021 results

    PART 2 Ongoing deliveries will contribute to 2021 results Deliveries originally planned in 2020 Bridge Eria Landscape Delayed in 2021 BRIDGE – Issy-les-Moulineaux (92) ERIA – Puteaux (92) Bridge, an illustration of Altarea’s expertise in business property PROPERTY BUSINESS These postponed deliveries

26. Slide 26: Financial performance

    3. Financial performance EM LYON – Lyon (69)

27. Slide 27: Managing risks in times of crisis to maintain financial strength

    PART 3 Managing risks in times of crisis to maintain financial strength While facing the health …Altarea conducted a …that reduction let the …without weakening its crisis that impacted policy of Group adjust the value of PERFORMANCE financial structure FINANCIAL results… risk reduction… retail asset

28. Slide 28: The health crisis impacted 2020 FFO

    PART 3 The health crisis impacted 2020 FFO FFO in Group share in €m Decrease in FFO (-21%) Overhead costs savings PERFORMANCE FINANCIAL -9% -9% due to taxes and disposals Health crisis impacts partially -12% offsetted by decrease in overhead costs -12% (-€26.6 m i.e. -9%) Taxes Overhead costs due to

29. Slide 29: Cash is king in times of crisis

    PART 3 Cash is king in times of crisis Revolving credits Bonds issues PERFORMANCE facilities FINANCIAL Altareit TAP: €150 m Liquidity available: Signature of €670 m Amend & Extend Altarea: €300 m €3.4 bn No back-up RCF credit line drawn in 2020 €2.0 bn at the Group level (4 – 6 years) (5 years / 9 y

30. Slide 30: Managing financial commitments to decrease the Group's net debt

    PART 3 Managing financial commitments to decrease the Group’s net debt Block sales to Retail institutional investors disposals PERFORMANCE FINANCIAL Risk mitigation and securing Closing of future cash collection two Italian assets (-€174 m net proceeds) Decrease in capital employed (-€139 m of WCR)

31. Slide 31: LTV at 33.0% (-20 bps): enhanced financial structure

    PART 3 LTV at 33.0% (-20 bps): enhanced financial structure Decrease in net debt Consolidated (€282) m PERFORMANCE net debt 2,475 FINANCIAL (« Loan ») 2,193 in €m Property development debt ELOQUENCE – Schiltigheim (67) CAP3000 – Nice (06) 2019 2020 Asset value Asset value (€806) m (« Value ») ICR 7,

32. Slide 32: Property development: high value potential

    PART 3 Property development: high value potential Property division A risk premium value to reconsider PERFORMANCE FINANCIAL Value appraised each year by 2020, a stress-case two independents firms unprecedented in its nature and scope Sharp increase of Property Development division Residential devel

33. Slide 33: NAV: fall in retail value, conservative approach for Property division

    PART 3 NAV: fall in retail value, conservative approach for Property division In €/share PERFORMANCE FINANCIAL (11.6)% 176.8 Potential capital gain on Property +13.8 division has not been taken into (10.3) 166.5 (21.3) account Net dividend 1 FFO (2.5) 156.4 Retail assets Others 2 NAV NAV NAV BEZONS

34. Slide 34: Dividend policy: the choice for long-term growth

    PART 3 Dividend policy: the choice for long-term growth Dividend policy Value creation for Altarea conducted with a long PERFORMANCE FINANCIAL term view Fuelling growth and financing Script option proposed 7 times debt reduction over the last 10 years €664 m of equity raised FFO multiplied by 2.5 in

35. Slide 35: Proposed dividend distribution for 2020

    Proposed dividend distribution for 2020 PART 3 Dividend increase and script dividend option PERFORMANCE FINANCIAL Script dividend option Either 100% in cash €9.50 or 50% share/ 50% cash (2) per share (1) Tax considerations +€0.50/a €6.08 : Share-premium refund i.e. +5.6% €2.59 : Distribution from “S

36. Slide 36: Convictions

    4. Convictions CEAT – Toulouse (31)

37. Slide 37: Convictions

    PART 4 Convictions Multi-brand Multi-business CONVICTIONS 2,000 real estate professionals Developer Investor Asset Manager A vast and growing market Development All asset classes All regions Urban transformation Offices Residentials Paris area Retails Regional gateway cities Logistics Hotels Medium-

38. Slide 38: Urban transformation: taking care of all generations

    PART 4 Urban transformation: taking care of all generations CONVICTIONS Nurseries, Schools University campuses Co-living Serviced residences VILLA GABRIELLE - Asnières (92) INTERNATIONAL ART CAMPUS – Fontainebleau (91) EM Lyon – Lyon (69) TOUQUET - Touquet (62) Co-Living - VOLPELIER – Montreuil (93)

39. Slide 39: Urban transformation: fighting against climate change

    PART 4 Urban transformation: fighting against climate change CONVICTIONS Attentes environnementales Geothermal energy Smart-grid OLEA (Woodeum) – Pantin (93) ISSY CŒUR DE VILLE – Issy les Moulineaux (92) Bio-sourced materials URB’IN – Bordeaux (33) Nature across town, urban forests Highest environme

40. Slide 40: Urban transformation: fixing urban inequalities

    PART 4 Urban transformation: fixing urban inequalities TOURS AILLAUD - Nanterre (92) CONVICTIONS EM Lyon – Lyon (69) BOBIGNY LA PLACE – Bobigny (93) Altarea, cities’ public Interest partner PRESTANCE – Schiltigheim (67) Villeurbanne Annual results 2020 40

41. Slide 41: Urban transformation: giving a second life to real estate heritage

    PART 4 Urban transformation: giving a second life to real estate heritage CONVICTIONS Transforming places of history, in living areas CASERNE DE CAUX - Douai (59) CHOCOLATERIE MENIER - Noisiel (77) HOTEL ROYAL – Maisons Laffite (78) CHÂTEAU DE PONTCHARTRAIN - Pontchartrain (78) Various tax regimes T

42. Slide 42: Urban transformation: reinventing the future of retail

    PART 4 Urban transformation: reinventing the future of retail CONVICTIONS QUARTIER GUILLAUMET – Toulouse (31) FERNEY VOLTAIRE – Genevois français (01) CAP3000 – Nice (06) BEZONS CŒUR DE VILLE – Bezons (95) GARE PARIS AUSTERLITZ – Paris (75) Annual results 2020 42

43. Slide 43: Urban transformation: building fifteen-minute city

    PART 4 Urban transformation: building “fifteen-minute” city CONVICTIONS Quartier Guillaumet (ex CEAT) Toulouse From a military industrial site to a mixed-use neighbourhood open on the city Capitole 100,000 sqm (1,200 units, retail shops, offices, infrastructures…) Sustainable architecture Stop soil

44. Slide 44: Outlook and Guidance

    PART 4 Outlook and Guidance OUTLOOK The FFO should resume its growth trajectory in 2021 provided that the health situation does not deteriorate significantly The first semester should still be strongly affected by the constraints linked to the health crisis and the second half of the year should ben

45. Slide 45: Altarea, urban transformation leader

    PART 4 CONVICTIONS Altarea, urban transformation leader Annual results 2020 45

46. Slide 46: Appendices and glossary

    Appendices and glossary Résultats annuels 2020 46

47. Slide 47: 2020 Income statement

    APPENDICES 2020 Income statement Changes in Funds from Business Other value, estimated In €m Retail Residential operations TOTAL Property Corporate expenses and (FFO) transaction costs Revenue 216.4 2,416.9 422.7 0.1 3,056.2 – 3,056.2 Change vs. 31/12/2019 (4.8)% +5.3% (28.1)% n.a. (1.7)% Net rental

48. Slide 48: Net asset value (NAV)

    APPENDICES Net asset value (NAV) NAV – Group 31/12/2020 31/12/2019 in €m Chge €/share Chge in €m €/share Consolidated equity, Group share 1,758.5 101.8 2,144.4 128.4 Other unrealised capital gains 867.0 701.6 Restatement of financial instruments 35.7 97.5 Deferred tax on the balance sheet for non-SI

49. Slide 49: Loan To Value

    APPENDICES Loan To Value In €m 31/12/2020 31/12/2019 Gross debt 3,470 3,305 Cash and cash equivalents (1,277) (830) Consolidated net debt 2,193 2,475 Retail at value (FC) (a) 3,982 4,445 Retail at value (EM securities), other (b) 212 182 Investment properties valued at cost (c) 213 510 Business Prop

50. Slide 50: Detailed balance sheet (1/2)

    APPENDICES Detailed balance sheet (1/2) In €m 31/12/2020 31/12/2019 restated NON-CURRENT ASSETS 5,132.2 5,455.4 Intangible assets 330.4 331.4 o/w Goodwill 209.4 209.4 o/w Brands 105.4 105.4 o/w Client relations – 0.6 o/w Other intangible assets 15.7 16.1 Property plant and equipment 26.1 20.9 Right-

51. Slide 51: Detailed balance sheet (2/2)

    APPENDICES Detailed balance sheet (2/2) In €m 31/12/2020 31/12/2019 restated EQUITY 2,716.7 3,335.5 Equity attributable to Altarea SCA shareholders 1,758.5 2,144.4 Capital 264.0 255.2 Other paid-in capital 233.8 311.8 Reserves 1,568.5 1,343.8 Income associated with Altarea SCA shareholders (307.7) 2

52. Slide 52: Glossary

    APPENDICES Glossary • Appraisal value – Retail: Value of portfolio assets including • LTV (Loan to Value): Net bond and bank debt/Restated value of transfer duties (at 100% or Group Share) assets including transfer duties • Average total cost of the debt: Average total cost including related • Net d

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