Covivio Sa · EURONEXT:COV

Covivio Sa — Foncière des Régions — Merger or Acquisition (April 2018)

21 slides from Covivio Sa's merger presentation, Apr 20, 2018

  1. Slide 1: Contemplated merger with Beni Stabili: A major step forward in European strategy & Group simplification

    Contemplated merger with Beni Stabili: A major step forward in European strategy & Group simplification - April 20th, 2018

  2. Slide 2: Contents

    CONTENTS > Beni Stabili: the leading Office player in Milan > Strategic merger supported by strong Milan office market dynamic > Simplification as a growth driver > Contemplated transaction & estimated impacts > An attractive value proposition for Beni Stabili shareholders > Key takeaways FONCIÈRE D

  3. Slide 3: Beni Stabili: the leading Office player in Milan

    Beni Stabili: the leading Office player in Milan 3

  4. Slide 4: Beni Stabili: the leading Italian office player

    BENI STABILI: THE LEADING ITALIAN OFFICE PLAYER €3.5 bn portfolio1 Group Share Fuelled by a c. €800 M pipeline With an unparalleled portfolio in Milan (€4.2 bn on a 100% basis) mostly in Milan (89%) 253 assets 51 assets 8 projects (1,903,000 m²)2 (620,000 m²)2 (198,100 m²) 64% of total GAV in Milan

  5. Slide 5: Major strategic successes delivered on targets since 2015

    MAJOR STRATEGIC DELIVERING ON TARGETS SUCCESSES ANNOUNCED SINCE 2015, IN 2015 BRINGING TO THE MERGER PAVING THE WAY TO A STRATEGIC GROUP INTEGRATION Diversified Tenant Base & Improved Occupancy Healthier credit profile Focus on Milan Occupancy rate Loan-to-Value (Offices, excl. TI) 642% +15pp +760 9

  6. Slide 6: Strategic merger supported by strong Milan office market dynamic

    Strategic merger supported by strong Milan office market dynamic 6

  7. Slide 7: Milan office market dynamic supporting the proposed transaction

    MILAN OFFICE MARKET DYNAMIC SUPPORTING THE PROPOSED TRANSACTION REGAINED MOMENTUM OF MILAN OFFICE MARKET, FAVOURING GRADE A ASSETS Increased ~+20% 70% Take-up: - - Preference for Grade A as % of 2017 take-up Grade A total take-up vs. 2015 2017 15.4% 13.5% Limited Vacancy for Vacancy Milan: 10.3% 6.8

  8. Slide 8: Simplification as a growth driver

    Simplification as a growth driver

  9. Slide 9: Simplification as a growth driver

    SIMPLIFICATION AS A GROWTH DRIVER A key milestone towards the ongoing objective of simplification  Improve flexibility and reactivity  Intensify client centric approach  Capitalize on a €21 bn Group: financing sources / cost, synergies and sharing of best practices between products & countries Gr

  10. Slide 10: A transaction strengthening the Group's strategic pillars

    A TRANSACTION STRENGTHENING THE GROUP’S STRATEGIC PILLARS 1 2 3 Focus on Full integration Strengthened European capital cities to best serve our clients property developer Know-how sharing & +€1.7 bn of assets1 mainly in Milan leveraging synergies between Full integration of ~ €800 M markets and cou

  11. Slide 11: Focus on development pipeline in Milan

    FOCUS ON DEVELOPMENT PIPELINE IN MILAN COMMITTED PIPELINE EVOLUTION: +26% INCREASE BY 2018-2019 2018-2019: +26%, in value Selected future committed projects >5 projects Milan, The Sign B / C New >110,300 m² c.17,000 m², ~ €70 M #6 projects Commitments Launched in Q1 2018 #6 projects €275 M €400 M 89

  12. Slide 12: Contemplated transaction & estimated impacts

    Contemplated transaction & estimated impacts

  13. Slide 13: Contemplated transaction & estimated impacts

    CONTEMPLATED TRANSACTION & ESTIMATED IMPACTS  Foncière des Régions proposed exchange ratio: 8.5 FDR shares for 1,000 Beni Stabili shares (post Merger > Beni Stabili 2017 dividend distribution) Terms Shareholding Structure  FDR intends to acquire additional BS shares in the market, to reach up to 6

  14. Slide 14: An enhanced capital market visibility: increased scale and enlarged free float

    AN ENHANCED CAPITAL MARKET VISIBILITY: INCREASED SCALE AND ENLARGED FREE FLOAT An enlarged free float, Increased market capitalization Proforma shareholding structure1 increasing liquidity €3.7 bn Post merger1 €7.3 bn Post merger1 (50.6%) Delfin 26.6% + € 0.7 bn + €0.5 bn (+ ~17%) Free Float 50.6% C

  15. Slide 15: An enhanced European portfolio, focusing on capital cities

    AN ENHANCED EUROPEAN PORTFOLIO, FOCUSING ON CAPITAL CITIES Beni Stabili Foncière des Régions Foncière des Régions Dec-2017 Dec-2017 post-merger2 GAV €3.5 bn1 €12.8 bn ~€15 bn Group Share Others Rest of Europe Rest of Europe 9% 5% 7% Northern Italy Milan 15% 64% Germany France Germany 28% 53% 26% Fra

  16. Slide 16: An attractive value proposition for Beni Stabili shareholders

    An attractive value proposition for Beni Stabili shareholders

  17. Slide 17: An attractive value proposition for Beni Stabili shareholders

    AN ATTRACTIVE VALUE PROPOSITION FOR BENI STABILI SHAREHOLDERS  Premium to share price exchange ratio Based on 3 month VWAP basis1 … offering a unique exposure to Europe and to its most growing markets  office, hotel and residential markets Access to  Paris, Berlin, Milan + ~8% #4 European REIT2 

  18. Slide 18: Key takeaways

    J Fonciére des Régions

  19. Slide 19: Key takeaways

    KEY TAKEAWAYS > Successful completion of Beni Stabili transformation initiated in 2015 > Enhanced focus on European capital cities > Stronger development pipeline > A further simplified and integrated Company acting as One Team > Accretive financial impacts & further enhanced Capital Market profile

  20. Slide 20: Indicative timetable

    INDICATIVE TIMETABLE  Board Meeting of Foncière des Régions formally initiating discussions on Merger Agreement 19 April 2018  Board Meeting of Beni Stabili formally initiating discussions on Merger Agreement 20 April 2018 Signing of the Merger Agreement By End May 2018 Foncière des Régions / Beni

  21. Slide 21: Contact

    Contact Paul Arkwright Paris Tel.: +33 1 58 97 51 85 30, avenue Kléber Mobile: +33 6 77 33 93 58 75116 Paris paul.arkwright@fdr.fr Tel.: +33 1 58 97 50 00 FONCIÈRE DES RÉGIONS

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