Slide 1: Carmila 2023 Annual Results Presentation
Carmila 2023 Annual Results Presentation 1
Slide 2: Agenda
1 Key Highlights and Strategy Update MARIE CHEVAL Chair and Chief Executive Officer 2 Activity Overview SEBASTIEN VANHOOVE Deputy Chief Executive Officer 3 Financial Performance PIERRE-YVES THIRION Chief Financial Officer 4 Conclusion MARIE CHEVAL Chair and Chief Executive Officer 2
Slide 3: Key Highlights and Strategy Update
1 Key Highlights and Strategy Update MARIE CHEVAL Chair and Chief Executive Officer 2 Activity Overview SEBASTIEN VANHOOVE Deputy Chief Executive Officer 3 Financial Performance PIERRE-YVES THIRION Chief Financial Officer 4 Conclusion MARIE CHEVAL Chair and Chief Executive Officer 3
Slide 4: Beating Strategic Plan Targets
1 Key Highlights and Strategy Update 2 3 4 Beating Strategic Plan Targets Strategic Plan Targets As of today Organic growth in recurring EPS of Building sustainable growth +8%1 € 1.60, +2% vs. guidance Dividend at least €1 per share, in cash, 75% Cash dividend of €1.20 per share2 payout of recurring
Slide 5: Excellent operating performance
1 Key Highlights and Strategy Update 2 3 4 Excellent operating performance Good leasing activity, record occupancy: 826 leases signed, reversion +2.4%, 96.6% occupancy Strong organic growth in net rental income: +4.7% vs. 2022 : Indexation effect and growth from record occupancy and agile developmen
Slide 6: Galimmo acquisition: A perfect opportunity for Carmila
1 Key Highlights and Strategy Update 2 3 4 Galimmo acquisition: A perfect opportunity for Carmila Complementary Footprint Acquisition price represents 35% 52 centres, mainly in the North-East of France discount to Galimmo Gross Asset Value at end-December 2022 €688 million gross asset value as of en
Slide 7: Galimmo acquisition: A perfect opportunity for Carmila
1 Key Highlights and Strategy Update 2 3 4 Galimmo acquisition: A perfect opportunity for Carmila Assets that Carmila knows how to Closing on track for summer 2024 manage and transform Signing July 2023 Food anchor Convenience Mid-Sized Financing secured in October 2023 cities z Rolling out Carmila
Slide 8: Finding a new balance in retail: Omnichannel and discount
1 Key Highlights and Strategy Update 2 3 4 Finding a new balance in retail: Omnichannel and discount Omnichannel is the winning model Defending purchasing power 180 20% 170 15% 10% 160 5% 150 0% 140 2019 2020 2021 2022 2023 -5% 130 France Food CPI France CPI Spain CPI 120 110 100 Carrefour 2019 2020
Slide 9: Actively pivoting the mix-merch with new retailers
1 Key Highlights and Strategy Update 2 3 4 Actively pivoting the mix-merch with new retailers Pivoting the mix-merch to new concepts 80 new brands for Carmila in 2023 % of rental income (end-2023) Lower share in 2023 More dynamic food and beverage concepts 37% at end-2017 31% at end-2022 Higher shar
Slide 10: A complete and ambitious CSR strategy
1 Key Highlights and Strategy Update 2 3 4 A complete and ambitious CSR strategy Acting for climate Acting for territories Acting for employees 46% reduction in greenhouse gases emissions GEI : 95 / 100 40% local tenants (GHG) scopes 1 and 2 1 CSR criterion in the 99% of shopping centres performance
Slide 11: On track to neutralize carbon emissions on scope 1 and 2 by 2030
1 Key Highlights and Strategy Update 2 3 4 On track to neutralize carbon emissions on scope 1 and 2 by 2030 2023 CO2 Emissions Energy consumption reduction -46% 100% LED relamping Target impact of driven by measures to reach AI driven Building Management reduced -45% net zero by 2030 consumption 10M
Slide 12: A successful year for Carmila's three growth initiatives
1 Key Highlights and Strategy Update 2 3 4 A successful year for Carmila’s three growth initiatives Omnichannel €4.3M incubator Contribution to recurring earnings in 2023 €2.0M Rent secured at end-2023 €2.0M EBITDA1 in 2023 RETAIL DEVELOPMENT €30M incremental annual contribution to recurring earning
Slide 13: Carmila is a fast-moving platform with long-term potential
1 Key Highlights and Strategy Update 2 3 4 Carmila is a fast-moving platform with long-term potential A unique strategy Capacity to optimize Long term vision well executed with a capital in a moving specific know how environment Pivoting the mix merch Close to 300 million euros of Mixed use Incubato
Slide 14: Outlook 2024
1 Key Highlights and Strategy Update 2 3 4 Outlook 2024 Lower long term interest rates Tourism supporting retail in Spain and Olympics in France Expected 2024 Recurring EPS : At least €1.63, +2% vs. 2023 14
Slide 15: Activity Overview
1 Key Highlights and Strategy Update MARIE CHEVAL Chair and Chief Executive Officer 2 Activity Overview SEBASTIEN VANHOOVE Deputy Chief Executive Officer 3 Financial Performance PIERRE-YVES THIRION Chief Financial Officer 4 Conclusion MARIE CHEVAL Chair and Chief Executive Officer 15
Slide 16: Higher footfall and growth in retailer sales
1 2 Activity Overview 3 4 Higher footfall and growth in retailer sales Sales growth Higher footfall % change in the sales of % change in footfall of Carmila Carmila tenants vs. 2022 centres vs. 2022 France +4% France +1% 118 centres 118 centres Spain +8% Spain +3% 75 centres 75 centres Italy +2% Ita
Slide 17: Operational excellence: strong leasing activity, record occupancy
1 2 Activity Overview 3 4 Operational excellence: strong leasing activity, record occupancy Strong leasing Affordable Record activity rents occupancy Positive reversion : 96.6% Financial 826 new long-term leases +2.4% in 2023 occupancy rate signed in 2023 Occupancy Cost Ratio of (+10bps vs. end-2022
Slide 18: Successful commercial strategy to drive pivot to new retailers
1 2 Activity Overview 3 4 Successful commercial strategy to drive pivot to new retailers Purchasing Illustration, not an Carmila Mix- power actual Carmila centre Merch Checklist • Essential services, gifts, healthcare • Purchasing power Pharmacy • Innovative food & Specialty beverage concepts Leasin
Slide 19: Omnichannel incubator: Supporting footfall and earnings growth
1 2 Activity Overview 3 4 Omnichannel incubator: Supporting footfall and earnings growth Pop-up stores Marketing and and events Specialty Leasing innovation Testing new concepts and +9% revenue growth: supporting footfall EUR 13.2 million Media campaigns Over 7 million store visits generated in tota
Slide 20: Carmila España: An attractive portfolio in a dynamic market
1 2 Activity Overview 3 4 Carmila España: An attractive portfolio in a dynamic market National coverage with flagship assets in tourist destinations 75 Ca. 500 000 € 1 356M Centres m² of GLA Portfolio value Financial Occupancy Net Initial occupancy cost ratio Yield 95.7% 11.0% 7.32% 23% of portfolio
Slide 21: Investing and transforming with agile restructuring projects
1 2 Activity Overview 3 4 Investing and transforming with agile restructuring projects Major Projects Agile Projects Mixed-Use Montesson Orléans Antibes Toulouse Labège Terrassa Transformation projects in Nantes and Sartrouville €44M of CAPEX in 2023 No building work currently Puget (34 projects) 13
Slide 22: Financial Performance
1 Key Highlights and Strategy Update MARIE CHEVAL Chair and Chief Executive Officer 2 Activity Overview SEBASTIEN VANHOOVE Deputy Chief Executive Officer 3 Financial Performance PIERRE-YVES THIRION Chief Financial Officer 4 Conclusion MARIE CHEVAL Chair and Chief Executive Officer 22
Slide 23: Record level of net rental income
1 2 3 Financial Performance 4 Record level of net rental income Net Rental Income (€M) COVID period Net rental income up +2.2% vs. 2022 333 335 342 271 290 • Organic rental growth +4.7%, driven by indexation (+4.1%) • Net impact of acquisitions and disposals of EUR -8.6 million, -2.6% 2019 2020 2021
Slide 24: Cost discipline and limited increase in financing costs
1 2 3 Financial Performance 4 Cost discipline and limited increase in financing costs 2022 2023 Net rental income 335.2 342.4 Net rental income +2% vs. 2022 Overhead costs -51.8 -52.9 Strict management of the cost base Equity-accounted +3.8 companies +2.9 EBITDA 287.2 292.4 EBITDA+2% vs. 2022 Equity
Slide 25: Organic growth of +8% in recurring earnings per share
1 2 3 Financial Performance 4 Organic growth of +8% in recurring earnings per share Recurring Earnings Per Share 2023 Performance €1.60 +8% growth in recurring EPS vs. 2022 at €1.56 constant scope and adjusting for rent collection from COVID period +2% vs. guidance Positive indexation effect on rent
Slide 26: 2023 Dividend and Outlook for 2024
1 2 3 Financial Performance 4 2023 Dividend and Outlook for 2024 DIVIDEND 2024 FINANCIAL OUTLOOK Expected 2024 Recurring EPS : €1.20 per share in cash* At least €1.63, +2% vs. 2023 (+2.6% vs. previous dividend) v v effect on rents Positive indexation Positive operating dynamics Dividend Policy: 75%
Slide 27: Change in like-for-like valuation of assets: -2.3% in 2023
1 2 3 Financial Performance 4 Change in like-for-like valuation of assets: -2.3% in 2023 Like-for-like change (vs 31 Dec. 2022) Market value € 5.9bn -2.3% Total (like-for-like) € 4.2bn -3.2% Total (like-for-like) € 1.4bn +0.1% Total (like-for-like) € 0.3bn -0.8% Total (like-for-like) 27
Slide 28: Retail yield expansion since 2017 largely offset by rental growth
1 2 3 Financial Performance 4 Retail yield expansion since 2017 largely offset by rental growth Increase in cap rates since 2017 6.42% Net Initial Yield • NIY +100bps over the period • Spread vs. 10 year swap rate +370bps +100bps of repricing 6.42% Reasonable appraisal assumptions 6.14% • Net Rental
Slide 29: EPRA Net Tangible Assets per share
1 2 3 Financial Performance 4 EPRA Net Tangible Assets per share 2023 Change in EPRA Net Tangible Assets per share EPRA NTA down -4.3% vs. end 25.26 -1.45 +1.60 -1.17 2023 +0.10 -0.17 24.17 Mainly due to like for like change in Dividend Share Other appraisal values of assets Like for like FY 2023 (1
Slide 30: Strong balance sheet
1 2 3 Financial Performance 4 Strong balance sheet End-2022 End-2023 BBB rating with a stable outlook from S&P Net debt (€M) 2,204 2,130 Significant headroom vs. bank covenants and rating constraints Gross Asset Value1 (€M) 6,166 5,885 Leverage metrics that compare favourably EPRA LTV1 35.8% 36.6% t
Slide 31: Strengthened liquidity position and funding structure
1 2 3 Financial Performance 4 Strengthened liquidity position and funding structure New secured loan: € 276 million euros, Carmila Debt Maturity Profile1 secured by 4 assets, maturing in 2030 €M New bond issue: € 500 million, maturing in 2028 Liquidity: 550 €860M of cash and cash equivalents and an
Slide 32: Carmila capex and investment outlook
1 2 3 Financial Performance 4 Carmila capex and investment outlook Green Capex Agile restructuring projects €10 million /year, including €40 million capex on agile investment in solar energy restructuring projects in 2024 (as well as €15 million a year of maintenance Capex) Major projects Next Tower
Slide 33: Financial wrap-up
1 2 3 Financial Performance 4 Financial wrap-up €5.9bn Gross Asset Value 36.6% €1.60 (-2.3% like-for-like vs. LTV1 recurring EPS in 2023 end-2022) €1.20 At least €1.63 Dividend policy Dividend per share in recurring EPS Cash dividend, 75% cash proposed2 in expected in 2024 payout 2024 (+2% vs. 2023)
Slide 34: Conclusion
1 2 3 4 5 1 Key Highlights and Strategy Update MARIE CHEVAL Chair and Chief Executive Officer 2 Activity Overview SEBASTIEN VANHOOVE Deputy Chief Executive Officer 3 Financial Performance PIERRE-YVES THIRION Chief Financial Officer 4 Conclusion MARIE CHEVAL Chair and Chief Executive Officer 34
Slide 35: Successful execution in 2023 and positive outlook for 2024
1 2 3 4 Conclusion Successful execution in 2023 and positive outlook for 2024 Delivering on the priorities of the strategic plan Strong operating performance, pivot strategy and agile projects Successful growth initiatives, asset sales in line with appraisal values Going beyond the plan with Galimmo
Slide 36: Q&A session
Q&A session 36
Slide 37: Next Tower ramp-up: on track to meet 2026 targets
Next Tower ramp-up: on track to meet 2026 targets €2.0M On average 143 Annualised rent secured* as of end ca. €13M of antennas in operation in France 2023 Capex a year and Spain Infrastructure and Track record in France 5G are two powerful 115 antennas in investment trends operation at end 2023 Laun