Altarea Sca · EURONEXT:ALTA
Altarea Sca — Altarea — H1 2023 Earnings Presentation
28 slides from Altarea Sca's earnings presentation, 2023
Slide 1: Altarea, Leader in Low Carbon Urban Transformation
ALTAREA, LEADER IN LOW CARBON URBAN TRANSFORMATION 2023 HALF-YEAR RESULTS
Slide 2: Altarea Embraces the New Cycle Relying on its Financial Strength
2023 HALF-YEAR RESULTS ALTAREA EMBRACES THE NEW CYCLE RELYING ON ITS FINANCIAL STRENTH Retail Property development New businesses 2 Excellent operational Appropriate Asset Management performance commitments policy creation of a real estate NRI growth given the context debt fund High occupancy level
Slide 3: Major Urban Projects: New Districts for Changing Cities
2023 HALF-YEAR RESULTS MAJOR URBAN PROJECTS: NEW DISTRICTS FOR CHANGING CITIES Deliveries: Amazing Amazones (Offices) 7 projects under construction (1 in the Paris region / 6 in Regions) & Lao (Residential) – Euronantes district 3 Launch of the low-carbon Carré Rabelais district in Tours Signing of
Slide 4: Operational Performance Retail: Excellent Operational Performance
2023 HALF-YEAR RESULTS OPERATIONAL PERFORMANCE RETAIL EXCELLENT OPERATIONAL PERFORMANCE Well-oriented ▪ Tenant’s revenue +8% 4 operational indicators ▪ Footfall +5% ▪ Financial vacancy 2.7% Strong growth ▪ NRI €98.0m (+3.3%) in net rental income +5.0% at constant scope Stability of appraisal value 5
Slide 5: Accelerated Development in Station Retail
2023 HALF-YEAR RESULTS ACCELERATED DEVELOPMENT IN STATION RETAIL PARIS-AUSTERLITZ AND PARIS-EST STATIONS Paris-Austerlitz station, 5 the new lively heart of the city A 25,000m² in retail, 45 million users by 2030 Work begun in H1 23 Paris-Est station, renovation and international dimension 6,800 m²
Slide 6: Residential: Priority Given to Commitment Reduction
2023 HALF-YEAR RESULTS OPERATIONAL PERFORMANCE RESIDENTIAL PRIORITY GIVEN TO COMMITMENT REDUCTION Great financial ▪ Destocking policy on existing supply discipline significant price cuts (retail and block) 6 ▪ Decrease in land acquisitions 20 operations in H1 2023 (1,756 units) vs 49 (4,555 units) i
Slide 7: Residential: Preparing the Future
2023 HALF-YEAR RESULTS OPERATIONAL PERFORMANCE RESIDENTIAL PREPARING THE FUTURE Developing the ▪ Systematic review of the property portfolio “new generation” design, commercial strategy, regional strategy, construction cost and 7 offer land price ▪ An affordable, cost-effective and low-carbon offer
Slide 8: Offices: Lack of Contribution from Major Projects
2023 HALF-YEAR RESULTS OPERATIONAL PERFORMANCE OFFICES LACK OF CONTRIBUTION FROM MAJOR PROJECTS Regions, ▪ Several off-plan sales for 13,000 m² a market driven by (Offices in Toulouse Guillaumet and Bordeaux Belvédère 8 end-users’ demand ▪ New projects secured for 16,000 m² Vernon and St-Genis-Laval
Slide 9: Logistics: Major Milestones for the Bollène Hub
2023 HALF-YEAR RESULTS OPERATIONAL PERFORMANCE LOGISTICS MAJOR MILESTONES FOR THE BOLLÈNE HUB Large-scale logistics, ▪ Bollène Hub project now fully-owned (vs 50%) 9 rental demand building no. 3 has been fully leased to ID Logistics at the end of remains dynamic 2022 and to Mutual Logistics & Gerflo
Slide 10: New Businesses Data Centers: Strong Potential
2023 HALF-YEAR RESULTS NEW BUSINESSES DATA CENTERS STRONG POTENTIAL Data Center, ▪ Fast growing market 10 an infrastructure for relocating data storage on national territory (sovereignty) the city of tomorrow ▪ Product shortage, especially for eco-friendly data centers energy auto-generation and rec
Slide 11: New Businesses Asset Management: Capitalising on the Group's Expertise
2023 HALF-YEAR RESULTS NEW BUSINESSES ASSET MANAGEMENT CAPITALISING ON THE GROUP'S EXPERTISE Altarea Investment ▪ AMF approval granted on April 13th for the creation Managers of an asset management company 11 ▪ Team set up internally and strengthened by external experienced professionals ▪ “Retail”
Slide 12: New Businesses Photovoltaics: A Huge Market
2023 HALF-YEAR RESULTS NEW BUSINESSES PHOTOVOLTAICS A HUGE MARKET Supporting the ▪ Huge demand electrification of the 100 GWp by 2050 (compared with 16 GWp installed at end-2022) 12 French economy ▪ Need to speeding up the development 5 GWp per year (compared with 2.4 GWp in 2022) Setting up the ▪ T
Slide 13: Financial Performance
2023 HALF-YEAR RESULTS FINANCIAL PERFORMANCE 13 13 Cité de la Gastronomie Rungis (94)
Slide 14: Excellent Performance from Retail, Limited Contribution of Property Development
2023 HALF-YEAR RESULTS FINANCIAL PERFORMANCE EXCELLENT PERFORMANCE FROM RETAIL LIMITED CONTRIBUTION OF PROPERTY DEVELOPMENT H1 2023 H1 2022 14 Property New In €m Retail Group (1) Group development businesses Revenue 124.3 1,125 - 1,250 1,422 Operating income (2) 93.7 16.6 (3.0) 92.4 223.3 Financial
Slide 15: Decline in Property Development Operating Income
2023 HALF-YEAR RESULTS FINANCIAL PERFORMANCE DECLINE IN PROPERTY DEVELOPMENT OPERATING INCOME, LACK OF CONTRIBUTIN FROM MAJOR PROJECTS AND LOWRED COMMITMENTS IN RESIDENTIAL In €m 142.1 -50.6 Residential (-€74.9m) 15 Lower prices -15.6 No major contribution -33.8 Reduction in land of Offices % of acq
Slide 16: Contained Net Debt Driven by Reduction in Residential Commitments
2023 HALF-YEAR RESULTS FINANCIAL PERFORMANCE CONTAINED NET DEBT (1) DRIVEN BY REDUCTION IN RESIDENTIAL COMMITMENTS In €m +103 -20 1,653 1,555 -22 +180 Other (2) +€98m 16 -143 vs end-2022 CAPEX HY 23 FFO Retail & BP Change in Acquisitions Residential (Saint-Honoré, WCR Bollène, Woodeum) Valhubert (Pa
Slide 17: Sound Financial Structure
2023 HALF-YEAR RESULTS FINANCIAL PERFORMANCE SOUND FINANCIAL STRUCTURE 17 Equity at fair value(1) €2,975m €146.0/share (-7.0% vs end-2022 and -0.6% post 2022 dividend) €1,559m Minority equity at fair value €1,653m Net debt (bonds and bank loans) ▪ LTV: 25.9% (+1.4 pt) ▪ Net debt/EBITDA: 5.2x (+1.7x)
Slide 18: Debt Management in a Context of Rising Interest Rates
2023 HALF-YEAR RESULTS FINANCIAL PERFORMANCE DEBT MANAGEMENT IN A CONTEXT OF RISING INTEREST RATES Optimisation of ▪ Reduction of gross debt (-€229m) 18 available cash ▪ Available cash €2.6 bn ▪ All of the Group's maturities largely covered by existing liquidity Long term debt cost ▪ Nominals hedged
Slide 19: European Taxonomy Revenue Aligned at 48%
2023 HALF-YEAR RESULTS EUROPEAN TAXONOMY REVENUE ALIGNED AT 48% (44% FOR FY 2022) European taxonomy, ▪ A universal European standard 19 European standard redirecting financing towards the ecological transition for environmental ▪ A financial industry-wide standard from 2024 performance banks, financ
Slide 20: Outlook: Further Adaptation to the Cycle Change in H2 2023
2023 HALF-YEAR RESULTS 2023 OUTLOOK FURTHER ADAPTATION TO THE CYCLE CHANGE IN H2 2023 Maintaining a high level of discipline in Property development 20 Lowered commitments and working capital requirements with consequences on results Building on the strength of Retail Recurrence and resilience Rolli
Slide 21: Appendices & Glossary
2023 HALF-YEAR RESULTS APPENDICES & GLOSSARY 21 Vauillons Marly-le-Roi 21
Slide 22: Disclaimer
2023 HALF-YEAR RESULTS 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 pur
Slide 23: Income Statement
2023 HALF-YEAR RESULTS INCOME STATEMENT Funds from Changes in value. Business New Other In €m Retail Residential operations estimated expenses TOTAL Property businesses Corporate (FFO) and transaction costs Revenue 124.3 1,009.4 116.2 – 0.1 1,250.1 – 1,250.1 Change vs. 30/06/2022 +13% -12% -29% - -1
Slide 24: Net Asset Value (NAV)
2023 HALF-YEAR RESULTS NET ASSET VALUE (NAV) 30/06/2023 31/12/2022 (€ millions) Chge €/share Chge (€ millions) €/share 24 Consolidated equity. Group share 2,165.3 -8.8% 106.3 -8.8% 2,236.2 116.6 Other unrealized capital gains 461.4 874.3 Deferred tax on the balance sheet for non-SIIC assets(a) 22.8
Slide 25: Loan to Value
2023 HALF-YEAR RESULTS LOAN TO VALUE (€ millions) 30/06/2023 31/12/2022 25 Gross debt 2,278 2,507 Cash and cash equivalents (625) (952) Consolidated net debt 1,653 1,555 Retail at value (FC)(a) 4,052 4,040 Retail at value (EM securities). other(b) 205 207 Investment properties valued at cost(c) 101
Slide 26: Consolidated Balance Sheet (1/2)
2023 HALF-YEAR RESULTS CONSOLIDATED BALANCE SHEET (1/2) (€ millions) 30/06/2023 31/12/2022 Non-current assets 5,112.2 5,100.0 Intangible assets 380.3 344.3 o/w Goodwill 253.8 214.7 o/w Brands 105.4 105.4 26 o/w Customer relationships 5.2 6.7 o/w Other intangible assets 15.9 17.4 Property plant and e
Slide 27: Consolidated Balance Sheet (2/2)
2023 HALF-YEAR RESULTS CONSOLIDATED BALANCE SHEET (2/2) (€ millions) 30/06/2023 31/12/2022 Equity 3,724.4 3,959.5 Equity attributable to Altarea SCA shareholders 2,165.3 2,375.2 Share capital 311.4 311.4 Other paid-in capital 391.7 395.0 Reserves 1,480.1 1,342.0 Income associated with Altarea SCA sh
Slide 28: Glossary
2023 HALF-YEAR RESULTS GLOSSARY • Alignment rate: Ratio between the "aligned" revenue and the consolidated revenue. • Net debt: Bond and bank debt. net of cash and cash equivalents • Appraisal value – Retail: Value of portfolio assets including transfer duties (at 100% or • Net debt / EBITDA: Net bo