Slide 1: 2012 Annual Results
www.altareacogedim.com 2012 ANNUAL RESULTS
Slide 2: Disclaimer
DISCLAIMER This presentation does not constitute an offer to sell or a solicitation of an offer to sell or exchange securities, nor does it represent a recommendation to subscribe to or sell Altarea Cogedim securities. The distribution of this document in some countries may be restricted by law or r
Slide 3: Altarea Cogedim: A Growth Model on 3 Markets
ALTAREA COGEDIM A GROWTH MODEL ON 3 MARKETS RETAIL RESIDENTIAL OFFICE PROPERTY The 1st multi-channel Housing for everyone A comprehensive Retail REIT approach 2012 ANNUAL RESULTS 3
Slide 4: Contents
CONTENTS Introduction p. 5 2012 Achievements p. 9 Finance p. 28 Outlook p. 34 2012 ANNUAL RESULTS 4
Slide 5: Introduction
INTRODUCTION 2012 ANNUAL RESULTS 5
Slide 6: Reminder: 2009/2012 Objectives
REMINDER: 2009/2012 OBJECTIVES RETAIL Focusing on large assets RESIDENTIAL Enlarging Cogedim offer OFFICE Extending the business model to investment PROPERTY Strengthening the balance sheet (liquidity & debt reduction) FINANCE Annual FFO increase greater than 10% 2012 ANNUAL RESULTS 6
Slide 7: A Difficult Economic Environment in 2012
A DIFFICULT ECONOMIC ENVIRONMENT IN 2012 Decline in consumption in France (-2.9%) RETAIL Austerity policies in Italy and Spain Sweeping changes in customer behavior Strong drop in the market (-28%) A wait-and-see attitude as a result of economic RESIDENTIAL conditions Tax instability J
Slide 8: Strong Growth for 2012 Results
STRONG GROWTH FOR 2012 RESULTS Like-for- (In € millions) 2012 2011 Change like (1) Sales 1,584.0 1,113.1 +42% +13% FFO (Group share) (2) 149.7 134.3 +11% FFO/share after dilution (3) €14.2 €13.1 +8.3% EPRA NAV (4) 1,621 1,565 +3.6% NAV/share after dilution (3) €148.6 €153.7 -3.4% LTV (5) 49.3% 51.2%
Slide 9: 2012 Achievements
2012 ACHIEVEMENTS 2012 ANNUAL RESULTS 9
Slide 10: Retail - The 1st Multi-Channel Retail REIT
Toulon La Valette shopping center – Development project RETAIL - The 1ST MULTI-CHANNEL RETAIL REIT 2012 ANNUAL RESULTS 10
Slide 11: Portfolio: Profound Changes Over the Past 3 Years
PORTFOLIO: PROFOUND CHANGES OVER THE PAST 3 YEARS Faster portfolio turnover (1) Reallocation of capital to large assets (2) Development of partnerships & management for third parties (€4 billion in assets under management) (In € millions, including 2012 2009 transfer duties) FEES FROM THIRD PA
Slide 12: France (84% of the Portfolio): 2012 Performance
FRANCE (84% OF THE PORTFOLIO)(1) 2012 PERFORMANCE: A SUCCESSFUL STRATEGY High-potential regional shopping centers: 51% of the portfolio Large Retail Parks (Family Village) with strong competitiveness on their market: 26% of the portfolio Locations in areas with high population growth Change in
Slide 13: Cap 3000: A New Step Forward
CAP 3000: A NEW STEP FORWARD PHASE 1: REMODELLING COMPLETED 2012 rental income: €30.0 million (vs. €23.0 million in 2010) PHASE 2: LAUNCH OF THE EXTENSION Altablue equity increased to €409 million Takeover of Cap 3000 by Altarea (1) TSDI (2) €109 million 61.8% 4.9% ALTABLUE 33.3% ALDETA (1) Fu
Slide 14: International (16% of the Portfolio): 2012 Performance
INTERNATIONAL (16% OF THE PORTFOLIO)(1) 2012 PERFORMANCE: RELATIVE RESILIENCE 83% of assets in value terms located in regions with high purchasing power (2) Stabilization of tenants’ occupancy cost ratio Negative impact from the new land tax in Italy (3) Average value €77 million Net rental in
Slide 15: Portfolio Developments
PORTFOLIO DEVELOPMENTS Total value: €3.2 billion (1) Net investments (2): €1.4 billion Group share: €2.6 billion Group share: €838 million Capitalization rate: 6.20% Projected yield: 8.6% VILLENEUVE- LA-GARENNE North-west of Paris 2012 rental income: €13.6 million Projected rental income
Slide 16: Altarea Is Now a Major Player in E-Commerce in France
ALTAREA IS NOW A MAJOR PLAYER IN E-COMMERCE IN FRANCE Takeover of a historical leader in French e-commerce (1) Implementation of the strategy Takeover of RDC completed Significant investments Oct. 2011 Acquisition of 28.64% of the 79 recruitments in 2012 capital of Rue du Commerce Feb. 2012 Ta
Slide 17: 2012: A Year of Growth for Rue du Commerce
2012: A YEAR OF GROWTH FOR RUE DU COMMERCE Impact of innovations (m-commerce, user-friendly site and purchasing process, etc.) Positive performance of high-tech products in an extremely competitive market (1) Good performance of the marketplace Visitor numbers (2) 181 million +17% o/w mobile (
Slide 18: Initial Implementation of the Multi-Channel Retail REIT Concept
INITIAL IMPLEMENTATION OF THE MULTI-CHANNEL RETAIL REIT CONCEPT Attracting Altarea retailers towards Rue du Commerce's Marketplace Geolocation-based cross-marketing (1) 14 chains signed at the end of 2012 50 currently in talks (1) Depending on internet users' catchment areas (identified by their
Slide 19: Housing for Everyone
Rive Gauche – Bordeaux HOUSING FOR EVERYONE 2012 ANNUAL RESULTS 19
Slide 20: Housing for Everyone
HOUSING FOR EVERYONE ENTRY LEVEL MIDSCALE HIGH-END Première Pierre, Montpellier Manhattan Docks, Saint-Ouen Sunline, Cannes SERVICED RESIDENCES NEW NEIGHBORHOODS Cogedim Club ® Arpitania, Chambéry Atlantis Grand Ouest, Massy 2012 ANNUAL RESULTS 20
Slide 21: Turnover: +74% Since 2009
TURNOVER: +74% SINCE 2009 A QUICK ADAPTATION OF THE OFFERING IN A MARKET DOWN 28% IN 2012 Strong increase in turnover and operating income Development of entry-level/midscale (1) and market share maintained Upholding the commitment to quality (2) Reservations, Entry- High- Serviced Launches €8
Slide 22: Office Property - A Comprehensive Approach
Hôtel-Dieu // Intercontinental – Marseille OFFICE PROPERTY - A COMPREHENSIVE APPROACH 2012 ANNUAL RESULTS 22
Slide 23: A Comprehensive Approach
A COMPREHENSIVE APPROACH DELIVERIES LAUNCHES INVESTMENTS OFF-PLAN SALE AGREEMENTS (VEFA) OFF-PLAN SALE AGREEMENTS (VEFA) RENOVATION Head office of Pomona Head office of Mercedes-Benz France Boulevard Raspail 144,500 ft² (13,425 m²) 140,000 ft² (13,000 m²) - Delivery late 2013 106,500 ft² (9,900 m²)
Slide 24: Back to Profits in a Difficult Market
BACK TO PROFITS IN A DIFFICULT MARKET 2012 sales achievements (€248 million in signed transactions) Improved outlook CONTRIBUTION OF THE OFFICE PROPERTY 3 projects delivered 347,950 ft² BUSINESS TO OPERATING PROFIT Av. Matignon, Antony, Nantes (32,325m²) (IN € MILLIONS) 3 projects signed 1,171,0
Slide 25: Sustainable Development at the Core of Our Business Model
Development – Villeneuve-La-Garenne shopping center NF Démarche HQE® and Breeam® level “Very Good” SUSTAINABLE DEVELOPMENT AT THE CORE OF OUR BUSINESS MODEL 2012 ANNUAL RESULTS 25
Slide 26: Recognized Results
RECOGNIZED RESULTS Altarea Cogedim surges forward in the Novethic ranking Awarded the Green Star in the GRESB Ranking (1) (Global Real Estate Sustainability Benchmark) 2009 2012 Tied for 1st Property Ranking 2nd Development Ranking (1) The GRESB is the premier worldwide ranking of the sustainabi
Slide 27: A Commitment That Drives the Sector Forward
A COMMITMENT THAT DRIVES THE SECTOR FORWARD Anticipate all sustainable development issues and regulations (1) Measure our CSR performance in all our businesses (2) Spreading best practices (CNCC, FSIF, FPI, PERIFEM, France GBC) 98% of commercial projects certified or undergoing the environment
Slide 28: Finance: A Strengthened Balance Sheet
FINANCE A STRENGTHENED BALANCE SHEET 2012 ANNUAL RESULTS 28
Slide 29: Strengthened Balance Sheet
STRENGTHENED BALANCE SHEET Equity €1.362 billion (1) +22% o/w dividend payout in shares +€69 million o/w issuance of subordinated +€109 million perpetual notes (TSDI) o/w consolidation of Cap 3000 €159 million LTV 49.3% -1.9 pt WCR €265.4 million (2) +24% % of consolidated revenue in 2012 16.7% -2.4
Slide 30: Income Statement
INCOME STATEMENT (In € millions) 2012 2011 (1) "Brick-and-mortar" retail (1) 135.0 135.4 Disposals offset by the like-for-like increase in rental income, as well as by fees Online retail (2) (6.0) - FFO/revenue ratio: 84% (+70 bps) Residential (3) 100.6 86.1 (2) Strengthening of the Marketplace, IT,
Slide 31: EPRA NAV: €148.6 per Share (-3.4%)
EPRA NAV (1): €148.6 PER SHARE (2) (-3.4%) Change in Change in value of value of assets Change in assets Internat. (4) Cogedim France (3) gains (5) Other (6) 2012 dividend Dilution due 2012 FFO to dividend payout in shares EPRA NAV EPRA NAV After impact of EPRA NAV per share perper share share 2012
Slide 32: Increased Liquidity
INCREASED LIQUIDITY €572 million in financing signed (1) Initial debt securities issuance in the amount of €250 million (2) Refinancing of 2013 maturities and anticipation of subsequent maturities MATURITY SCHEDULE Maturity schedule Net debt (3) €2.186 billion +5% Term 4.3 years Cash and cash
Slide 33: Borrowing Costs
BORROWING COSTS 2 issues carried out at competitive rates First appearance on the commercial paper market Restructuring of the interest rate hedging profile Nominal amount andSCHEDULE MATURITY average hedge rate 2012 average cost 3.52% - 7 bps €2.186 bil. Bond issue rate (1) 3.65% €100 million
Slide 34: Outlook
OUTLOOK 2012 ANNUAL RESULTS 34
Slide 35: Profound Changes in Our Markets
PROFOUND CHANGES IN OUR MARKETS RETAIL RESIDENTIAL OFFICE PROPERTY The e-commerce A market characterized A cyclical market revolution by shortage + + + An inadequate office Renewed attractiveness A major politic issue park for shopping centers = = = Significant increase in Business recovery Emergenc
Slide 36: Retail: Reinventing the Retail REIT!
RETAIL: REINVENTING THE RETAIL REIT! Real estate at the core of the business model Allocation of capital to large assets Primacy of operational control Developing the management business for third parties A vast range of non-property services with high commercial value Online retail space /
Slide 37: E-Commerce: Seizing the Market!
E-COMMERCE: SEIZING THE MARKET! Strong growth in the e-commerce market Quickening changes in consumer habits Potential for 25 to 35% of total consumption in France (1) All sectors concerned in the long run Develop Rue du Commerce A strong starting position Goal > €1 billion in business vol
Slide 38: Residential: Build More!
RESIDENTIAL: BUILD MORE! The housing shortage: a major issue National authorities want to revive construction Government objective: 500,000 homes / year including 100,000 to 150,000 open-market/intermediate homes A future-looking market (first-time buyers, individual and institutional investor
Slide 39: Office Property: Ready for Growth!
OFFICE PROPERTY: READY FOR GROWTH! A market at a cyclical low 5 years of crisis have stepped up obsolescence of the office park Financial and operational constraints drive users and investors to restructure their property Altarea Cogedim devoted the recent period to implementing a comprehensive
Slide 40: 2013-2017: Our Vision
2013-2017: OUR VISION OUR MARKETS 2013 – 2014 2015 – 2017 Difficult economic conditions Renewed growth on improved A period of structural fundamentals transformations OUR GROUP Cautious commitments "Transformative" future-looking Strong sales growth investments Improved results thanks
Slide 41: Objectives
OBJECTIVES Thanks to the fundamentals of our markets and barring an economic blow with repercussions in France 2017 FFO: + 50% versus 2012 Dividend guidance equal to FFO guidance Continued investments and transformations started in all our business lines 2013 FFO: slight drop expected 2013 d
Slide 42: Appendices
APPENDICES 2012 ANNUAL RESULTS 42
Slide 43: 2012 Revenue: +42%
2012 REVENUE: +42% +13% LIKE-FOR-LIKE (EXCLUDING IMPACT FROM RUE DU COMMERCE) Retail Office (In € millions) "Brick-and- Residential (3) TOTAL property (4) Mortar" (1) Online (2) Rental revenues and GM 160.4 -1% 9.4 +25% 169.8 +0% commissions Distribution 315.7 +9% 315.7 +9% l-f-l revenues Percentage
Slide 44: 2012 Operating Cash Flow: +6%
2012 OPERATING CASH FLOW: +6% SIGNIFICANT CONTRIBUTION FROM RESIDENTIAL PROPERTIES (+17%) Retail Office (In € millions) "Brick-and- Online Residential TOTAL property Mortar" Net rental income & Galerie marchande 145.8 9.4 155.2 -0.7% commissions Selling margins on -9.3% 24.4 24.4 l-f-l distribution
Slide 45: Dividend 2012
DIVIDEND 2012 A dividend of € 10.0 € per share for fiscal year 2012 will be submitted to the General Shareholders' Meeting scheduled for June 10, 2013 Representing a 8,1% yield on the basis of close of stock price on February, 26th, 2013 Optional payment of the dividend in shares will be propo
Slide 46: Retail: Controlled Portfolio France and International
RETAIL: CONTROLLED PORTFOLIO FRANCE AND INTERNATIONAL Share of Share of Share of Share France Surface International Surface Altarea third Altarea of third Controlled assets area m² Controlled assets area in m² Cogedim parties Cogedim parties Toulouse Occitania 56,200 100% - Barcelona - San Cugat 20,
Slide 47: Retail: Minority Stakes and Assets Managed for Third Parties
RETAIL: MINORITY STAKES AND ASSETS MANAGED FOR THIRD PARTIES Share of Share Value (in € millions) (2) Surface Gross Minority interests Altarea of third Third area in m² rental income Altarea Cogedim parties 100% parties (in € millions) (1) Cogedim Paris - Gare du Nord shops 3,750 40% 60% (1) Roubaix
Slide 48: Retail: Development Pipeline
RETAIL: DEVELOPMENT PIPELINE Creation/ At 100% Group share Redev./ GLA Gross rental Net invest. (1) Yield GLA created Gross rental Net invest. (1) Yield Center Extension created income (in € millions) (m²) income (in € millions) (m²) (in € millions) (in € millions) Family Village Le Mans 2 Creation
Slide 49: Residential: Reservations and Notarized Sales
RESIDENTIAL: RESERVATIONS AND NOTARIZED SALES Reservations in value terms and in number of Notarized sales lots (1) 2012 2011 Serviced % by Individual Midscale Upscale Total residences region €646 mil. €843 mil. -23% reservations Paris region 177 302 26 505 59% Block reservations €215 mil. €362 mil.
Slide 50: Residential: Backlog, Properties for Sale and Property Portfolio
RESIDENTIAL: BACKLOG, PROPERTIES FOR SALE AND PROPERTY PORTFOLIO Backlog (1): 18 months of business Properties for sale and property portfolio (2) Notarized Sales sales to be reserved In € millions % by recognized but not Total (incl. tax) on a percentage- region In € millions <1 >1 Total No. of of-
Slide 51: Contact
CONTACT Eric Dumas, Chief Financial Officer edumas@altareacogedim.com tel: + 33 1 44 95 51 42 Catherine Leroy, Investor Relations cleroy@altareacogedim.com tel: + 33 1 56 26 24 87 www.altareacogedim.com 51