Slide 1: 2021 Full-year Results
2021 Full-year Results February 15, 2022
Slide 2: Preliminary remarks
Preliminary remarks The 2021 annual consolidated financial statements were approved by the Board of Directors on February 14, 2022. The audit procedures have been completed by the statutory auditors. The audit certification report is underway. 2
Slide 3: Contents
Contents 01 02 03 04 Solid demand for Mercialys’ pillars Financial results Conclusion & 2022 objectives physical retail for growth over at end-2021 the medium term Page 5 Page 14 Page 26 Page 40 3
Slide 4: Mercialys is effectively positioned to resume a growth strategy
Mercialys is effectively positioned to resume a growth strategy Mercialys is continuing to develop The health crisis has shown the Over the medium term, Mercialys’ strong competitive positions in buoyant model’s robustness: in France, the strategy aims to capitalize on its retail peripheral urban ar
Slide 5: Solid demand for physical retail
Solid demand for physical retail Elizabeth Blaise Deputy Chief Executive Officer & Chief Financial Officer
Slide 6: Market that still offers growth potential, with regulation preserving asset value
Mercialys operates in a market that still offers growth potential and in which regulation will help preserve the value of existing assets Level of retail facilities in France consistent Regulatory environment with the average for European countries now limiting the potential for construction No over
Slide 7: Clients confirm relevance of proximity and omni-channel strategy
Our clients confirm the relevance of Mercialys’ strategy focused on proximity and an omni-channel approach Excluding periods when stores were closed, What criteria make you choose to buy online? for your non-food purchases, do you primarily buy: ➔ The absence of stores and 1% Pricing uncertainty con
Slide 8: Physical retail continues to be desirable, with the human dimension as core factor
Physical retail continues to be desirable, with the human dimension as the core factor ATTRACTIVE STORE SUPPORTED BY 4 KEY PILLARS Human factor central to physical retail’s appeal › The ObSoCo study on “tomorrow’s ideal store” found a Affinity convergence between all of the stakeholders surveyed, an
Slide 9: Stores will remain central to retailers' profitability
Stores will remain central to retailers’ profitability Retail stores increasingly important to online performance Average transaction fees for online marketplaces now exceed physical stores’ Occupancy Cost Ratios › Online sales growth of traditional retailers has on average Category Minimum Maximum
Slide 10: Anchoring around a large food store is still relevant
Anchoring around a large food store is still relevant, with this format adapted for changes in consumer habits HYPERMARKET, A KEY FORMAT FORMAT ATTRACTING VIRTUALLY FOR FRENCH CONSUMERS ALL FRENCH HOUSEHOLDS Annual average Quantity Penetration Number market share for hypermarkets in the 50.4% budget
Slide 11: Strong appeal of out-of-town locations in French regions
Strong appeal of out-of-town locations in French regions, with trips primarily by car CONSTRUCTION TRENDS (1) The health crisis has increased the appeal of out-of-town (housing starts in 2019 per 1000 inhabitants) locations and mid-size cities (2) › One in five households has either moved or plans t
Slide 12: Urban development types decisive for retailers' regional coverage
The types of urban development will be even more decisive in the future for retailers’ regional coverage Moderate density Mid-level density High density Stores are seen as the most Coverage A fulfillment center may benefit from profitable means rationalized for economies of scale. Coverage with of m
Slide 13: Retailers expected to remain active in peripheral urban areas
Retailers are expected to remain active in peripheral urban areas, with a key role for restaurants and affordable retailers BREAKDOWN OF THE TENANT MIX FOR PROJECTS RETAILERS WITH THE STRONGEST PRESENCE OPENED SINCE 2019 IN FRANCE IN RETAIL COMPLEXES OPENED SINCE 2019 (percentage per sector out of t
Slide 14: Mercialys' pillars for growth over the medium term
Mercialys’ pillars for growth over the medium term Vincent Ravat Chief Executive Officer
Slide 15: Retailer sales levels close to 2019 on a comparable basis
Retailer sales levels close to 2019 on a comparable basis Opening months in 2021 impacted by a number of operational constraints, which have since been lifted CHANGE IN MERCIALYS’ 2021 FOOTFALL (1) CHANGE IN MERCIALYS’ 2021 RETAILER SALES (1) › Footfall at Mercialys sites in 2021 over the comparable
Slide 16: Intense letting activity optimizing the merchandizing mix
A difficult context with intense letting activity enabling Mercialys to optimize its merchandizing mix RECENT LETTING DEALS BREAKDOWN OF MERCIALYS’ RENTAL INCOME IN MERCIALYS’ PORTFOLIO BY BUSINESS SECTOR (% of annualized rental income at December 31, 2021 - change vs. December 31, 2020) Entry time
Slide 17: Lease expiry schedule effectively staggered over time
Lease expiry schedule effectively staggered over time and benefiting from new signatures and ongoing deals LEASE EXPIRY SCHEDULE (percentage of leases expiring / guaranteed minimum rent at Jan. 31, 2022) › 271 renewals and relettings completed in 2021 for €15.9m, i.e. 9.4% of the total rental base,
Slide 18: 4 pillars supporting Mercialys' growth over the medium term
4 pillars supporting Mercialys’ growth over the medium term Capitalize on all spaces Capitalize on client knowledge › Optimizing transit times › Successful development of coworking › Distributing the center’s footprint within its › Research into other uses area Implement the development pipeline / m
Slide 19: Rapid success with the development of coworking spaces
Rapid success with the development of coworking spaces IN 24 MONTHS, 4 SPACES OPENED, WITH OVER 1,500 SQ.M IN OPERATION (spaces managed directly by Mercialys) Feb. 2020 Sep. 2020 Aug. 2021 Dec. 2021 54 workspaces - 561 sq.m 26 workspaces - 280 sq.m 45 workspaces - 439 sq.m 28 workspaces - 270 sq.m 1
Slide 20: Coworking model aligned with the features of our assets
Coworking model aligned with the features of our assets, with the ambition to create a new vertical BREAKDOWN OF MERCIALYS’ PORTFOLIO Within 3 years, 5,000 sq.m developed and operated directly by Mercialys “A new trend for the development of coworking hubs away from Saint-Denis Paris city centers, c
Slide 21: Developing the use of client data to support retailers
Mercialys is developing the use of its client data to support retailers and the strong positioning of retail sites DATA THAT ARE RICH CLIENT KNOWLEDGE OVER THE MEDIUM TERM, DATA THAT ARE THROUGH THEIR LEVELS HARNESSED TO SUPPORT MORE EXTENSIVE USE OF INHERENTLY RICH OF ANALYSIS RETAILERS DATA Contac
Slide 22: Expand our last mile service ecosystem
Expand our last mile service ecosystem, building on the foundations for our initial progress Mercialys shopping centers need to become, locally, a bridge between physical and digital retail Develop the product offering available within the last mile, while supporting the development of a more extens
Slide 23: Bringing retailers on board to develop the Ocitô service
Significant stakes in terms of bringing retailers on board with a view to developing the Ocitô service and ensuring its profitability Insights into consumers’ needs - Service used in the vast majority of cases by clients from the catchment area › Primarily through clients’ click and collect orders,
Slide 24: Multi-usage pipeline and monitoring of acquisition opportunities
Pipeline with a strong multi-usage focus alongside constant monitoring of opportunities for acquisitions outside of the current asset portfolio TOTAL INVESTMENT STILL TARGET NET TARGET NET YIELD COMPLETION (€m) INVESTMENT TO BE COMMITTED RENTAL INCOME ON COST DATE COMMITTED PROJECTS (1) 19.9 18.5 0.
Slide 25: Development opportunities with acquisitions
Development opportunities with acquisitions Shopping center assets Hypermarkets Retail parks New developments › Increasing Mercialys’ › Diversification of the › Operating know-how of › Mercialys can national network tenant structure for Mercialys’ teams participate in public Enhanced pricing power f
Slide 26: Financial results at end-2021
Financial results at end-2021 Elizabeth Blaise Deputy Chief Executive Officer & Chief Financial Officer
Slide 27: Collection rates still lagging behind historical levels
Collection rates still lagging behind historical levels, impacted by the delays with government support measures for H1 2021 COLLECTION OF RENTS AND CHARGES COLLECTION OF RENTS AND CHARGES FOR 2020 FOR 2021 (at December 31, 2021) (at December 31, 2021) 95.3% 92.2% 88.8% 86.7% 80.9% 99.5% 100.0% 100.
Slide 28: Contrasting impacts of the health crisis in 2021
Contrasting impacts of the health crisis in 2021 EFFECTS RECOGNIZED December 31, 2020 June 30, 2021 December 31, 2021 CORRESPONDING PROFIT AND LOSS Amount before P&L Amount before P&L Amount before P&L IMPACTS PERIOD HEADING potential deferral (€m) (€m) potential deferral (€m) (€m) potential deferra
Slide 29: Vacancy levels already on a downward trend
Vacancy levels already on a downward trend › Buoyant trend for letting activity › No significant impacts for retailers' network rationalization on Mercialys’ portfolio › Strategic vacancy integrating since H2 2020 the assets acquired to be redeveloped CHANGE IN VACANCY RATE (1) 5.4% 5.7% 4.9% 3.4% 3
Slide 30: Organic growth reflecting base effects from the health crisis
Organic growth (1) reflecting significant base effects generated by the health crisis 2017 2018 2019 2020 2021 IMPACTS LINKED TO +2.6% +3.7% +3.6% -7.0% +3.0% THE HEALTH CRISIS › Covid-19 impacts linked to the 2020 lockdowns +1.2% +4.6% +1.9% › Stable level of variable rent +2.6% +2.5% +1.7% +1.6% +
Slide 31: Rental revenues down -1.8%
Rental revenues down -1.8% €175.4m Organic growth -1.8% €172.2m Lease rights +3.0% €2.5m - €7.7m Lease rights + €8.0m €1.9m + €0.4m + €0.4m + €0.1m - €3.7m - €0.1m €172.9m €170.4m -1.5% Rental revenues Acquisitions Strategic Indexation Contribution by Contribution by Actions carried Accounting Renta
Slide 32: FFO up +6.5% to €101.8m
FFO up +6.5% to €101.8m €1.04 €1.10 EBITDA margin +5.0% /SHARE /SHARE 84.0% + €15.9m + €0.8m - €7.0m €101.8m +6.5% €95.5m - €2.3m + €0.8m Tight control of + €1.2m - €3.2m the cost structure Impact of Lower Impact of despite the July 2020 corporate the health Impacts Impacts additional costs refinanc
Slide 33: Successful asset disposal strategy with satisfactory pricing levels
Successful asset disposal strategy with satisfactory pricing levels €28.0m of sales concerning various plots and two assets: › Marseille Canebière Monoprix store €28.0m of asset disposals › Carré Duparc retail park in Sainte-Marie (Reunion Island) €82m of preliminary sales agreements, with 94% no lo
Slide 34: Strong financial structure
Strong financial structure CHANGE IN LTV AND ICR DEBT: FIXED VS. FLOATING RATE EXPOSURE (1) 5.0x 5.6x 5.1x 14% 38.1% 38.3% 36.7% 35.8% 36.0% 34.4% Fixed-rate debt 2021 Variable-rate debt 86% 2020 H1 2021 2021 LTV (%) - excluding transfer taxes LTV (%) - including transfer taxes ICR (x) 8% CHANGE IN
Slide 35: Strong level of liquidity
Strong level of liquidity CHANGE IN THE COST OF DRAWN DEBT (1) (2) Drawn debt: €1,354.5m including: › €1,219.5m of bond debt Full-year impact of the bond refinancing operation carried out in July › €135m of commercial paper 1.9% 2.0% Cash & cash equivalents: €257.1m 1.4% Standard & Poor’s BBB rating
Slide 36: Rolled debt schedule
Rolled debt schedule DEBT SCHEDULE AT END-DECEMBER 2020 (1) In €m 568.7 225 300 300 150 35 30 30 25 30 30 Jan. 2022 Jun. 2022 Jul. 2022 Dec. 2022 Mar. 2023 Jun. 2023 Jul. 2023 Dec. 2023 Jun. 2024 Jul. 2024 2025 Feb. 2026 Jul. 2027 Nov. 2027 Confirmed bank facilities Casino cash advance Bonds Revolvi
Slide 37: Change in portfolio value at December 31, 2021
Change in portfolio value at December 31, 2021 Portfolio value at Dec. 31, 2021 : Euro 2,945.1 million excluding transfer taxes Change in portfolio value excluding transfer taxes CHANGE ON A LIKE-FOR-LIKE BASIS (1) H1 2021 H2 2021 FY 2021 Of which rent effect -1.9% -0.9% -2.8% Of which yield effect
Slide 38: Appraiser assumptions behind portfolio values
Appraiser assumptions behind portfolio values at end-December 2021 MERCIALYS SPREAD BETWEEN RISK-FREE RATE AND MERCIALYS’ AVERAGE APPRAISAL YIELD RATE 6% Average annual rent 220 (€/sq.m) 5% 4% 3.9 pts 3.3 pts 4.8 pts 4.4 pts 4.6 pts 4.3 pts 4.4 pts 5.1 pts 6.1 pts 5.5 pts Net rental income CAGR 3% 2
Slide 39: Change in EPRA NDV per share
Change in EPRA NDV per share (1) › €17.60/share +€1.09 (2) -€0.98 › Up +2.5% over 6 months €18.42 › Down -4.5% over 12 months -€0.42 -€0.33 +€0.01 -€0.18 €17.60 Rent effect EPRA NRV - €0.92 › €20.51/share Yield effect › Up +1.0% over 6 months - €0.08 › Down -3.2% over 12 months Other effects (3) + €
Slide 40: Conclusion & 2022 objectives
Conclusion & 2022 objectives Vincent Ravat Chief Executive Officer
Slide 41: Dividend payment
Dividend payment › Mercialys will propose a dividend of €0.92 / share at the 2022 General Meeting Proposed dividend corresponding to 85% of 2021 FFO › Ex-dividend date: May 3, 2022 › Payment date: May 5, 2022 CHANGE IN DIVIDEND (in € / share) % of FFO 88% 90% 70% 41% 85% 2 9.4% 10.7% 15,0% 7.7% 6.0%
Slide 42: 2022 objectives
2022 objectives excluding the health situation’s potential impacts on operations CHANGE IN FFO DIVIDEND PER SHARE POLICY Increase of at least Dividend ranging +2% vs. 2021 from 85% to 95% of 2022 FFO 42
Slide 43: Appendices
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Slide 44: Financial calendar
Financial calendar 2022 APRIL 20 APRIL 28 JULY 27 JULY 28 OCTOBER 18 Activity 2022 Press release Activity Conference call at March 31, Annual on 2022 at September 30, on 2022 2022 Shareholders’ half-year results 2022 half-year results (after market close) Meeting (after market close) (after market c
Slide 45: Company profile
Company profile Leading listed French real estate company that is a pure player €170.4m for shopping centers Rental revenues › Mercialys' portfolio is focused on large and neighborhood shopping centers that are leaders in their areas 84% › Assets are concentrated in the most dynamic French regions E
Slide 46: Organizational structure
Organizational structure › All core business functions carried out in-house, excluding specific mandates 137 employees at end-December 2021 › The last support functions still outsourced at end-2021 will be brought back in-house in 2022 Support functions brought back in-house in 2019-2020 Real Estate
Slide 47: Shopping center portfolio structure
Shopping center portfolio structure NUMBER OF SHOPPING CENTERS AND AVERAGE VALUE 180 120 160 73.5 65.9 62.6 61.5 48.7 70 140 26.9 34.3 120 20 100 80 -30 60 40 93 69 -80 20 59 58 48 49 50 0 -130 2010 2012 2014 2016 2018 2020 2021 Number of shopping centers in portfolio Average gross asset value of sh
Slide 48: Rental income structure
Rental income structure › Over 900 retailers and 2,134 leases BREAKDOWN OF MERCIALYS’ RENTAL INCOME BREAKDOWN OF MERCIALYS’ RENTAL INCOME BY TYPE OF RETAILER BY TYPE OF RETAILER ECONOMIC EXPOSURE CONSOLIDATED VISION (% of annualized rental income at Dec. 31, 2021) (% of annualized rental income at D
Slide 49: Rental income structure
Rental income structure CASINO GROUP LEASE SCHEDULE H&M GROUP LEASE SCHEDULE (main leases: hypermarkets, supermarkets & Monoprix stores) Lease Lease % held by Site Type start end Lease characteristics Site Lease start date Lease end date Lease characteristics Mercialys date date Grenoble 100% Monopr
Slide 50: Shareholding structure
Shareholding structure SHAREHOLDING STRUCTURE (at December 31, 2021) December December December 31, 2019 31, 2020 31, 2021 0.52% Number of shares outstanding 92,049,169 92,049,169 93,886,501 at the end of the period 7.85% Public Average number of shares 16.77% 92,049,169 92,049,169 93,179,835 Casino
Slide 51: Ranked as one of Europe's top performers for CSR strategy
Mercialys ranked as one of Europe’s top performers for its CSR strategy and results Score: 89/100 BPR Score: 89/100 Rating: A #1 in its Rating: B- Best Universal Score: 85/100 Gold Award 2021 Green Star A List status category Score: 9.1 Rating: A Prime status Registration #3 on sBPR status maintaine
Slide 52: EPRA performance indicators
EPRA performance indicators DECEMBER 31, 2020 JUNE 30, 2021 DECEMBER 31, 2021 EPRA earnings - € per share 1.04 0.60 1.10 EPRA NRV - € per share 21.18 20.32 20.51 EPRA NTA - € per share 19.04 18.26 18.39 EPRA NDV - € per share 18.42 17.17 17.60 EPRA net initial yield - % 5.28% 5.26% 5.24% EPRA “toppe
Slide 53: FFO & EPRA earnings
FFO & EPRA earnings IN THOUSANDS OF EUROS DECEMBER 31, 2020 DECEMBER 31, 2021 Invoiced rents 172,911 170,352 Lease rights 2,529 1,879 Rental revenues 175,440 172,232 Property taxes -14,248 -13,570 Rebilling to tenants 12,684 11,606 Non-recovered property taxes -1,564 -1,964 Service charges -30,142 -
Slide 54: Net income attributable to owners of the parent
Net income attributable to owners of the parent IN THOUSANDS OF EUROS DECEMBER 31, 2020 DECEMBER 31, 2021 FFO 95,541 101,754 Depreciation and amortization -40,777 -39,157 Other operating income and expenses 34,223 369 Impact of hedging ineffectiveness, banking default risk and partial redemption of
Slide 55: Balance sheet
Balance sheet IN THOUSANDS OF EUROS DECEMBER 31, 2020 DECEMBER 31, 2021 Intangible assets 4,052 5,028 Property, plant and equipment other than investment property 1,605 6,922 Investment property 2,050,907 1,935,117 Right-of-use assets 8,902 8,590 Investments in associates 38,918 37,907 Other non-cur
Slide 56: Breakdown of assets
Breakdown of assets Average appraisal yield rate: 5.71% at December 31, 2021 APPRAISAL VALUE APPRAISAL VALUE NUMBER GROSS LEASABLE AREA APPRAISED NET (EXCL. TRANSFER TAXES) (INCL. TRANSFER TAXES) AT DECEMBER 31, 2021 RENTAL INCOME OF ASSETS AT DECEMBER 31, 2021 AT DECEMBER 31, 2021 TYPE OF PROPERTY
Slide 57: Disclaimer
Disclaimer › This communication contains forward-looking information and statements about Mercialys. Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, obj