Unibail-Rodamco-Westfield SE · EURONEXT:URW
Unibail-Rodamco-Westfield — H1 2020 Earnings Presentation
59 slides from Unibail-Rodamco-Westfield's earnings presentation, 2020
Slide 1: 2020 Half-Year Results
TRENDY & SAFARI @) COME TOGETHER’ a Q. Westfield BIS RECEPTION Westfield Les TEHPS 2020 HALF- YEAR RESULTS UNIBAIL-RODAMCO-WESTFIELD
Slide 2: Disclaimer
Disclaimer Unibail-Rodamco-Westfield S.E., a Société Européenne à Directoire et Conseil de Surveillance incorporated under French law, is a listed property investment company. Unibail-Rodamco-Westfield S.E. is listed on Euronext Amsterdam and Euronext Paris. The value of your investment may fluctuat
Slide 3: H1-2020 Summary
H1-2020 SUMMARY Ww UNIBAIL-RODAMCO-WESTFIELD
Slide 4: Mitigating the impact of an unprecedented crisis
Mitigating the impact of an unprecedented crisis Q1 COVID-19 May-June 446 leases signed Most centres closed Restarted operations Tenant sales(1): +2.2% Preserved liquidity Implemented health & safety Footfall(2): +2.0% Supported communities measures Collection rate: 94% Tenant relief Started tenant
Slide 5: Financial Results
FINANCIAL RESULTS Ww UNIBAIL-RODAMCO-WESTFIELD
Slide 6: 2020 Half-Year Results
2020 Half-Year Results € Mn H1-2020 H1-2019 Growth Lfl Growth Shopping Centres 1,008 1,137 -11.4% -11.3% Offices & Others 42 62 -32.1% +0.4% Convention & Exhibition 15 56 -73.2% -73.2% Net Rental Income 1,065 1,254 -15.1% -14.2% Recurring Net Result (Group share) 667 916 -27.2% Recurring EPS 4.82 6.
Slide 7: COVID-19
COVID-19 Ww UNIBAIL-RODAMCO-WESTFIELD
Slide 8: Calendar of reopenings
Calendar of reopenings March April May June July March 15 May 11 May 15 March 16 May 2 May 29 March 18 May 11 May 22 March 17 May 11 June 22 March 16 April 20 May 11 Weighted average March 15 June 1 closure period(1): March 14 May 4 May 18 March 18 June 15 67 days March 16 May 20 March 15 May 25 Jun
Slide 9: Responding to the crisis: preserving liquidity
Responding to the crisis: preserving liquidity… Credit lines: partly drawn As at June 30, 2020 Debt: raised €2.2 Bn senior bonds Final dividend: cancelled (€748 Mn) €12.7 Bn of cash on hand Non-essential capital expenditure: ~€500 Mn deferred and undrawn Development pipeline: removed a further €1.6
Slide 10: Supporting our communities
… supporting our communities… United States France Donating food to front line health Created spaces in eight shopping care professionals and provide centres for associations fighting daily necessities for families domestic violence against women through NGOs United Kingdom United States Westfield L
Slide 11: Supporting our tenants
… and our tenants… From quarterly to monthly payments April and May rents deferred for closed tenants No penalties for late Q2 payments No decision on rent relief in the middle of the crisis − Ad-hoc discussions started in May Flexibility in opening hours without contractual penalties Westfield Foru
Slide 12: Ensuring safe reopenings
… and ensuring safe reopenings Partnering with Bureau Veritas for “Safe & Healthy Places” label Intensifying cleaning of common areas Sanitiser stations Social distancing: one way system, waiting lines, … Increased fresh air circulation 2020 HALF-YEAR RESULTS 12
Slide 13: Disposal of five French shopping centres successfully completed
Disposal of five French shopping centres successfully completed Disposal of 54.2% interest in €2.0 Bn retail portfolio(1) Aéroville So Ouest Confluence Rennes Alma Toison d’Or URW NDP : €1.5 Bn (2) (1) Crédit Agricole Assurances and La Française hold 54.2% of the newly formed Entity. €1.0 Bn secured
Slide 14: Footfall in regions reopen 11 to 12 weeks approaching 80-90% of normal
Footfall in regions reopen 11 to 12 weeks approaching 80 - 90% of normal footfall 110% 100% 90% 80% 70% 60% 50% 40% Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 FR group 1(1) AT DE DK CE (1) Confluence, Les Ulis 2, Polygone Riviera, Rennes Alma, So Ouest, To
Slide 15: Spain and later opening centres in France show a similar trend
Spain and later opening centres in France show a similar trend 100% 90% 80% 70% 60% 50% 40% Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 ES FR group 2(1) Avg of regions opened in early May (1) Aéroville, Westfield Parly 2, Westfield Rosny 2, Westfield Vélizy 2, and Westfield Carré Sénart
Slide 16: Very large urban centres are still lagging
Very large urban centres are still lagging 100% 90% 80% 70% 60% 50% 40% 30% 20% June 1 June 8 June 15 June 22 June 29 July 6 July 13 July 20 FR group 3(1) UK (1) CNIT, Westfield Les 4 Temps and Westfield Forum des Halles. NB: Year-on-year change in footfall versus the same week LY. 2020 HALF-YEAR RE
Slide 17: CBDs will recover as people go back to work
CBDs will recover as people go back to work Workplace Mobility Trends(1) 20 10 0 -10 % compared to baseline -20 Austria -30 France Germany -40 Netherlands Spain -50 Sweden United Kingdom -60 -70 -80 -90 (1) Source: Kempen Daily; Google COVID-19 Community Mobility Reports 2020 HALF-YEAR RESULTS 17
Slide 18: Sales impacted less than footfall
Sales impacted less than footfall: higher conversion and average basket YTD June 2020(1) June 2020(1) February 2020 France +1.0% -19.1% Home +5.6% Central Europe +5.3% -24.6% Culture & Media & Technology +1.7% Spain +2.6% -18.7% Food Stores & Mass Merchandise -0.1% Nordics +3.5% -20.2% Jewellery -7.
Slide 19: Update on retail rent collection
Update on retail rent collection Q2 collection rates Q1 collection 94% 38% 3% Q2 collection 100% 20% 38% 62% 59% 39% 39% July collection 50% Invoiced Collected Relief granted Deferred or Due (1) not due yet (1) Deferred until after July 31 NB: including services charges, as at July 24 2020 HALF-YEAR
Slide 20: Update on tenant negotiations
Update on tenant negotiations Broad principles: Typical concessions required: Case by case Extension of firm lease period (1) Fair burden sharing Increase of SBR percentage No relief for tenants that traded well throughout Waiver of co-tenancy provisions (US) the crisis New landlord break-options No
Slide 21: Operational Highlights in Brief
OPERATIONAL HIGHLIGHTS IN BRIEF
Slide 22: Leasing activity reflects different market contexts
Leasing activity reflects different market contexts 29.0% MGR uplift 15.4% 14.1% 6.5% Leases signed(1) 5.5% 2.9% -0.7% -8.1% 661 (-44%) -13.7% -30.8% FR CE ES NO AT DE NL Cont. UK US(2) Europe (1) Standing assets only (2) Average rental spreads (definition in line with US market practices) -1.2% in
Slide 23: Bankruptcies and vacancy reflect impact of COVID-19
Bankruptcies and vacancy reflect impact of COVID-19 Cont. Europe UK US URW # of stores 235 21 135 391 In place 228 21 106 355 Replaced 3 2 5 10.1% In place / replaced 98% 100% 80% 92% Vacant 9.1% 4 27 31 8.6% 8.2% 8.1% 7.7% 6.9% 4.6% 4.1% 3.9% 3.2% 3.3% 3.4% 3.1% 2.6% 2.5% 2.0% 1.3% 1.1% 0.7% FR CE
Slide 24: Openings
Openings Westfield Mall of Scandinavia (February 21) Westfield Parly 2 (July 6) Gropius Passagen (May 29) Westfield Les 4 Temps (June 29) Westfield Valley Fair (March 5) Westfield Vélizy 2 (July 13) Westfield UTC (May 1) Shopping City Süd (June 20) 2020 HALF-YEAR RESULTS 24
Slide 25: Opening first ever Harrods outlet
Opening first ever Harrods outlet Harrods outlet opened on July 3, 2020, replacing Debenhams in Westfield London 2020 HALF-YEAR RESULTS 25
Slide 26: Signings helping to diversify our retail-mix
Signings helping to diversify our retail-mix Westfield Old Orchard La Part-Dieu Westfield Westfield Mall of Scandinavia Stratford City Westfield Valley Fair Westfield Valley Fair Westfield Valley Fair La Part-Dieu & Westfield Valley Fair & Westfield Valley Fair Westfield Century City Westfield Hambu
Slide 27: Future of Retail
FUTURE OF RETAIL Ww UNIBAIL-RODAMCO-WESTFIELD
Slide 28: Will the surge in online persist?
Will the surge in online persist? Credit card transactions in store and distance sales(1) Daily YoY(%) credit card transactions in 2020 vs. comparable day in 2019 start lockdown end lockdown Total In-store sales Distance sales (1) For France. Cartes Bancaires CB, Insee. Distance sales include e-comm
Slide 29: People like to shop
People like to shop “What do you want to do straight after the lockdown?” Visit family and friends 64% Walk on the street 52% Have a walk in a park or by the sea 48% Invite friends for dinner 45% Eat out at a friends' house 42% Go to a restaurant or a bar 41% Make a weekend trip in France 39% Go to
Slide 30: Successful retailers remain committed to omni-channel model
Successful retailers remain committed to omni-channel model Stores are critical to the We continue to increase We don't regret for a moment rapidly implementation of the following UNIQLO store numbers in each expanding our retail footprint. … we'll be excited three key strategic areas: markets and a
Slide 31: Accelerated digitalisation strategy
Accelerated digitalisation strategy Engage customers Extend value in retailers in a digitalised experience digital ecosystems Crowd management Unified omnichannel Connect: unified experience platform of services Westfield Club transactional loyalty program Click & Services Flexible retail space Smar
Slide 32: Digitalisation H1-2020 key achievements
Digitalisation H1-2020 key achievements Scaling digitalisation by partnering with the best Offer digitisation Food delivery Westfield Club Renewed audience Maximise sales from stores Generate additional sales Frictionless customer Extend reach partnering with by connecting physical for restaurants e
Slide 33: Solid CSR foundations to build on for post COVID-19 preferences
Solid CSR foundations to build on for post COVID-19 preferences -50% carbon emissions 100% of owned & managed assets 100% Group employees with yearly across our value chain by 2030 with a community resilience action plan by 2020 individual CSR objectives by 2020 LEED Gold certification obtained Worl
Slide 34: CSR strategy recognized
CSR strategy recognized Reconfirmed index inclusions URW stands out as industry leader(1) World 120 Eurozone 120 Europe 120 France 20 Prime B (1) ISS 2020 rating. Up from C+ in 2019 2020 HALF-YEAR RESULTS 34
Slide 35: Post-COVID: Offices and C&E
POST-COVID: OFFICES AND C&E Ww UNIBAIL-RODAMCO-WESTFIELD
Slide 36: Future of offices
Future of offices 76% 73% 16% of employees miss of employees of people who their offices(1) don’t have worked from home a dedicated space do not want to do for home working(1) so in the future(2) Attracting talent Fostering creativity Team building Enhancing diversity Offices will remain even as spa
Slide 37: Future of C&E
Future of C&E Anticipated recovery of C&E business 125 95 events held events postponed Restart of activities September 1, 2020 (o/w 26 to 2021) 191 235 Recovery 2021 events cancelled events planned in Q4 Back to “normal” 2022 Paris Olympics From H2-2023 Le Perchoir, Paris Portes de Versailles NB: ev
Slide 38: Development
DEVELOPMENT Ww UNIBAIL-RODAMCO-WESTFIELD
Slide 39: Pipeline overview
Pipeline overview €10.3 Bn +€0.1 Bn €8.3 Bn -€2.1 Bn -€0.5 Bn €6.2 Bn -€1.6 Bn €2.7 Bn €4.0 Bn -€2.2 Bn €2.5 Bn €3.6 Bn €1.6 Bn H1-2019 Deliveries & Removed projects FY-2019 Deliveries & Removed projects H1-2020 Invested to date Remaining changes changes Committed(1) Controlled(1) (1) Please refer t
Slide 40: Rebalancing retail
Rebalancing retail URW repositioning space in standing assets Transformation of House of Fraser unit into Dining & leisure greenfield / brownfield 7,500 sqm co-working, 1,050 sqm wellness 11% Dining & leisure and 1,050 sqm retail ext / renovation Retail ext / 8% renovation 11% 32% 1.0 million sqm Of
Slide 41: Update on deliveries
Update on deliveries GLA Delivered GLA Delivery GLA Delivery GLA Delivery GLA Delivery +46,700 sqm March 2020 49,500 sqm H2-2020 +32,800 sqm H2-2020 51,300 sqm H1-2021 +86,500 sqm H1-2021 URW ownership Pre-letting(1) 100% TIC Pre-letting(1) 100% TIC Pre-letting(1) 100% TIC Pre-letting(1) 100% TIC Pr
Slide 42: Financing
FINANCING Ww UNIBAIL-RODAMCO-WESTFIELD
Slide 43: Extending debt maturities
Extending debt maturities Euro Senior Bonds Refinancing maturing LT debt April €2.1 Bn €2.2 Bn Avg coupon: 5-years 10-years 2.27% €600 Mn €800 Mn 2.125% 2.625% June Avg maturity: 12-years 9.3 years €750 Mn 2.0% Bonds maturing in 2020(1) Bonds issued in H1-2020 (1) Average maturity at issuance 6 year
Slide 44: Cost of debt and maturity
Cost of debt and maturity Average Cost of Debt Average Maturity (years) 8.2 8.5(2) 3.9% 3.6% 7.5 3.4% EUR(1) USD & GBP 7.2 1.1% 3.6% 7.0 2.9% 6.5 2.6% 5.9 5.4 2.2% 4.9 4.5 1.6% 4.3 1.6% 1.6% 1.7% 1.4% (1) Including SEK (2) Taking into account the cash on-hand 2020 HALF-YEAR RESULTS 44
Slide 45: Very strong liquidity: record level of cash and undrawn credit facilities
Very strong liquidity: record level of cash and undrawn credit facilities €14 Bn €12.7 Bn €12 Bn €10 Bn €8 Bn €6 Bn €4 Bn €2 Bn €0 Bn 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1-2020 NB: From 2007 to 2017 Unibail-Rodamco, from 2018 onwards URW 2020 HALF-YEAR RESULTS 45
Slide 46: Well spread debt maturity profile
Well spread debt maturity profile 4,000 3,500 3,000 2,500 in EUR Mn 2,000 1,500 1,000 500 - H2-2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2036 2037 2038 2039+ Unsecured bonds Secured bonds Convertibles Short term paper Loans & mortages (1) URW’s IFRS debt profile as a
Slide 47: Disposals, Balance Sheet and NAV
DISPOSALS, BALANCE SHEET AND NAV
Slide 48: URW's commitment to disposals
URW’s commitment to disposals €6.0 Bn +€2.8 Bn €4.0 Bn On-going €4.0 Bn in the next several years processes − Approx. 50% retail Pragmatic approach -€4.8 Bn Feb '19 target Realized Increased target Remaining 2020 HALF-YEAR RESULTS 48
Slide 49: Credit ratios
Credit ratios LTV ICR(1) 60% 6.9 6.1 42% 5.9 5.7 33% 41.5% 32% 40% 4.6 4.6 38% 4.0 4.1 4.2 30% 3.8 33% 3.5 2.5 3.5 28% 2.0 Typical covenant level Target range (1) On a 6 month basis for HY metrics 2020 HALF-YEAR RESULTS 49
Slide 50: Transparent LTV calculation - Based on the covenants
Transparent LTV calculation - Based on the covenants net financial debt (excluding current accounts with non-controlling interests)(1) LTV = total assets (including transfer taxes and excluding goodwill not justified by fee business) Covenants: calculated under Under IFRS: Hybrid = equity “V” consis
Slide 51: Ample headroom under covenants
Ample headroom under covenants 0% GMV change (in %)(1) -5% -10% -15% -20% -25% GMV impact €0 Bn -€3 Bn -€5 Bn -€8 Bn -€11 Bn -€13 Bn LTV 41.5% 43.5% 45.8% 48.2% 51.0% 54.1% Implied Δ NIY(2) 0 bps +26 bps +54 bps +87 bps +124 bps +167 bps Remaining €18 Bn €15 Bn €12 Bn €10 Bn €7 Bn €4 Bn headroom(3)
Slide 52: EPRA NRV evolution
EPRA NRV evolution Non Lfl Recurring revaluation 2 EPS & EPRA Net Reinstatement Value (1) +€4.82 intangible assets (per share) -3 -€10.56 €228.80 €222.87 -€5.40 -€0.53 €197.00 -8 Rent effect Asset -€3.60 revaluation -13 -€26.26 -18 Yield effect -€12.10 -23 -28 Other -€4.43 GMV: €60.4 Bn December 201
Slide 53: COVID-19: Accounting, AREPS and CAPEX
COVID-19: ACCOUNTING, AREPS AND CAPEX
Slide 54: Accounting implications of COVID-19
Accounting implications of COVID-19 P&L Balance sheet Full impact of tenant negotiations not in H1 Trade receivables increased: €493 Mn(1) P&L: − Deferrals limited provisioning − Few deals signed pre-closing − Collection rates will increase with: − Deals with concessions from tenants must be • Concl
Slide 55: AREPS H1-2020
AREPS H1-2020 -€0.16 -€0.22 -€0.11 -€0.57 -€0.25 -€0.21 +€0.03 -€0.24 -€0.07 €6.45 -€1.45 COVID-19 €4.62 €4.65 AREPS Disposals Letting fees (1) P&L impact Doubtful Variable Services Convention & Financial Others AREPS H1-2019 COVID-19 debtors income Exhibition expenses H1-2020 rent relief streams (1
Slide 56: Capital expenditures deferred and costs reduced
Capital expenditures deferred and costs reduced €500 Mn of CAPEX deferred €60 Mn of annualised gross admin savings Development CAPEX of smaller / controlled Partial activity and furlough schemes projects Operating CAPEX “Agility programme” in the US and UK Cuts in non-staff costs 2020 HALF-YEAR RESU
Slide 57: 2020 Outlook
2020 OUTLOOK Ww UNIBAIL-RODAMCO-WESTFIELD
Slide 58: AREPS outlook for 2020
AREPS outlook for 2020 AREPS: Significant impact of the COVID-19 pandemic on the Group Guidance withdrawn in March Continued risk of government measures to combat COVID-19 − California reimposed restrictions − Reopening Convention & Exhibition business Collection of Q2 receivables ongoing - rents un
Slide 59: URW.COM
y UNIBAIL-RODAMCO-WESTFIELD URW.COM
Unibail-Rodamco-Westfield — H1 2020 Earnings Presentation on 6ix