Slide 1: 2009 full-year results
2009 full-year results Tuesday, February 16, 2010
Slide 2: Overview of the year
mercialys L’Esprit Voisin. Overview of the year
Slide 3: Major acquisition in 2009 and targets achieved
In 2009, Mercialys carried out a major acquisition and achieved its targets Largest acquisition since the IPO Euro 334 million worth of assets acquired Increase in the value of the portfolio of close to +20% Improvement in the stock's liquidity Inclusion in the SBF 120 Mercialys achieved its 2009 ta
Slide 4: Erratic economic conditions cushioned in France
Erratic economic conditions but effects cushioned by economic and social conditions in France Consumer spending held up: Manufactured goods* +1.0% o/w Household equipment +2.8% Measures to boost o/w Textiles and leather -1.7% purchasing power o/w Other manufactured -0.9% (government car incentives p
Slide 5: Mercialys's shopping centers were resilient
In that environment, Mercialys's shopping centers were resilient Neighborhood shopping centers Mercialys's large shopping centers continue to show above-average benefit from the variety of retailers resilience present and the positive impact of renovations under the Alcudia / Esprit Voisin program A
Slide 6: Esprit Voisin, a great success with our customers
Esprit Voisin, a great success with our customers... Successfully attracting customers Consumer ‘Culture Clients’ survey (February 2009) in the expectations 14 sites renovated and extended under the Esprit CCA study (April 08) Voisin concept Customers who feel welcome: 81% Greater social ties and a
Slide 7: Success with retailers and peers
... and also with retailers and our peers The Esprit Voisin concept has won an award from Le Procos* The renovation/extension of the Besançon Châteaufarine shopping center under the Esprit Voisin concept won the Procos 2010 award for best extension This is a proof of retailers appreciation of the qu
Slide 8: Targeted actions to boost footfall
Strengths enhanced by targeted actions to boost footfall Ambitious loyalty program on a nationwide scale Mercialys has taken the innovative step of offering the S’Miles loyalty program (developed for SNCF, Galeries Lafayette, Casino, Shell, BHV, Monoprix etc.) at its shopping centers The same loyalt
Slide 9: Esprit Voisin: a customer-oriented culture
Esprit Voisin: more than a concept, a true customer-oriented culture that permeates the entire company Founding value Mercialys's core business A corporate culture Esprit Voisin Offering a wider and more comprehensive range Value taking sustainable creation development considerations into account Of
Slide 10: A business model supporting the group's performance
A business model supporting the group's performance Dividend proposed for 2009* 14% higher than the dividend for 2008 Yield of 4% based on the current share price Dividend per share (Euro) Growth in consolidated +70% in 4 years recurring operating income over the same period: +71% An interim dividen
Slide 11: Activity and results
mercialys L’Esprit Voisin. Activity and results
Slide 12: Growth in rental revenues: target achieved
Growth in rental revenues: target achieved Target of 15% growth in rental revenues beaten Strong organic growth in rents maintained at +6.1% Rental revenues: +15.5% RR 134.2 +3.4 +12.4 -2.0 +4.7 -1.1 RR Organic 116.2 Non-recurring Valuation of growth Impact of Indexation existing items** assets vari
Slide 13: Steady activity to enhance the offering
A steady activity to enhance the offering of our shopping centers... Record number of leases signed: 306 leases signed vs. 232 in 2008 Renewals, relets and lettings of new premises 114 leases relet (compared with 70 in 2008) 106 leases renewed (compared with 107 in 2008) 86 leases signed relating to
Slide 14: Launch of a loyalty program
... and their attractiveness Launch of a loyalty program: a new proof of Esprit Voisin A strong position A mission Esprit Voisin meets consumers' Optimizing footfall expectations: practical services, at our shopping centers user friendly, individual recognition by offering new events attachment to w
Slide 15: Management indicators show a resilient portfolio
Our management indicators show the portfolio to be highly resilient Average gross rental value of Low occupancy cost of 8.6%** Euro 185 per m² IPD benchmark Euro 300 per m²* 185 185 8.5% 8.6% 174 8.1% 8.2% 162 7.1% 7.3% Euros per m² 147 136 12/31/06 12/31/08 12/31/09 12/31/06 12/31/08 12/31/09 12/31
Slide 16: Favorable mix in the current environment
Shopping centers benefit from a favorable mix in the current environment Business sectors* showing stronger resilience: +1.8% +1.0% -1.5% -1.8% -1.4% -0.2% -7.0% -9.8% -2.6% -3.0% Food and Personal Household Culture, gifts and Health and beauty restaurants equipment equipment leisure All shopping ce
Slide 17: Improving productivity and cost control
Improving productivity by keeping leeway to accompany our shopping centers Mercialys implemented a plan to control costs in 2009 Net structural costs* stable at Euro 11.0 million, while the value of the portfolio increased by nearly 20% Non-recovered property operating expenses up 20% due to acquisi
Slide 18: Significant improvement in operating performance
Significant improvement in operating performance Stronger growth in recurring operating cash flow than in rental revenues +17.3% Recurring operating cash Cash flow** Net income, Group flow* 115.2 share 113.8 99.7 93.0 97.0 80.9 Euro millions +17.3% +15.5% +15.0% 2008 2009 2008 2009 2008 2009 2009 fu
Slide 19: A year of major external growth
A year of major external growth Mercialys carried out the largest acquisition since its IPO this year Contribution by Casino of 25 assets for Euro 334 million* increase in the value of the portfolio of close to +20% Rents 24,3 New properties in 3 assets (Euro millions) 1 operation Euro 47 million* 1
Slide 20: Acquisition in keeping with strategy since the IPO
An acquisition in keeping with the strategy implemented since the IPO 2005 2006 2007 2008 2009 / 10 First achievements Continuation of of Alcudia / Esprit Alcudia / Esprit Voisin program Voisin program Announcement of Alcudia / Esprit Voisin IPO program Enlargement of the Compliance Partnership Agre
Slide 21: Mercialys's financial profile strengthened
Mercialys's financial profile strengthened In return for its contributions, Casino received 14.2 million Mercialys shares Shareholding structure at based on an exchange ratio of Euro 12/31/09 23.50 per share Casino redistributed 14 million shares to Market capitalization: Euro 2,258 million Free flo
Slide 22: Portfolio value almost stable like-for-like
A portfolio value almost stable on a like-for-like basis Appraisal value of portfolio including Growth over 12 transfer taxes* months +18.2% 2 381,0 2 437,2 Euro + 397 million 2 061,2 2009 acquisitions** 1 913,8 Euro millions Euro - 132 million 1 346,9 Increase in average 1 027,0 capitalization rate
Slide 23: NAV per share almost stable
NAV per share equally almost stable over 12 months Components of the change in NAV between Net asset value* per share end-2008 and end-2009 by value Euro +434 27.00 26.28 26.78 25.70 Euros per share million 2009 cash flow: Euro +115 million 20.08 17.07 15.62 -0.8% Acquisitions: Euro +397 million IPO
Slide 24: Developments and acquisitions
Developments and acquisitions
Slide 25: Alcudia/Esprit Voisin: very positive initial results
Alcudia/Esprit Voisin: very positive initial results for 2008-09 openings Enlarged shopping centers Developed area Commercial results Arles Increase in sales revenues for Besançon Shopping mall shopping malls since opening Lanester (*): Le Puy +19,000 m² +300 bp relative to CNCC Valence Sud Besançon
Slide 26: Development projects: openings expected in 2010
Alcudia / Esprit Voisin development projects: 7 openings expected in 2010 General comments Under difficult economic conditions, developments currently undergoing works are in line with their initial targets: • opening dates maintained • rental yields in line with expectations • letting of developmen
Slide 27: Alcudia / Esprit Voisin: 2010 openings
Alcudia / Esprit Voisin: 2010 openings Open ing o 5, 20 n May 10 Castres (*) 2,260 m² shopping mall extension 20, i ng on M ay Open 2010 Brest Castorama redevelopment: creation of 16 stores and 1 mid-size store (4,900 m²) Open ing on 26, 20 May 10 2009 full-year results Fontaine les Dijon (*) 1,100
Slide 28: Alcudia / Esprit Voisin: 2010 openings
Alcudia / Esprit Voisin: 2010 openings Open Octob ing on er 20 , 2010 Annecy (*) 4,800 m² shopping mall extension r Octobe ing Ste Marie Duparc (*) Open 2010 8,600 m² shopping mall extension Open ing O ct 2010 ober 2009 full-year results Paris Saint Didier Redevelopment of shopping mall (*) Projects
Slide 29: Implementation of the program is continuing
In addition to the assets acquired this year, the implementation of the program is continuing 16 CDAC authorizations obtained in 2009 representing selling space of 50,000 m² Launch of a new Esprit Voisin theme program for 16 shopping centers: 3 centers in 2010, 8 in 2011 and 5 in 2012 Target of 8 Al
Slide 30: Successful pre-letting of extensions
Successful pre-letting of extensions The letting of 2010 extensions is at an advanced stage (rate calculated in value: rents achieved / rents targeted) 100% Retailers that place their trust in Mercialys shopping centers 112% 100% 86% 83% 75% Arrival of FNAC in Annemasse 52% H&M in Niort 0% The first
Slide 31: Casino pipeline is continuing to grow
Casino pipeline is continuing to grow Casino development project pipeline (Euro millions) +22 530 505 +91 -117 516 -18 +32 New developments pipeline 265 Euro 265 million + Alcudia extensions pipeline 265 Euro 265 million June 30, Inclusions in CDAC Withdrawal Assets Change in Adjusted Value based 20
Slide 32: Acquisition of Caserne de Bonne site in Grenoble
Acquisition of Caserne de Bonne site in Grenoble*: an urban environment under ongoing change Site that was part of a tender launched by the city of Grenoble in 2006, tender won by the developer Apsys 17,300 m² of retail space (GLA): 9 large and mid-size stores, 38 small stores and 5 restaurants + 30
Slide 33: Caserne de Bonne site: commercial zone
Caserne de Bonne site in Grenoble: commercial zone Building A – 10,887 m² GLA of retail space on lower ground floor, ground floor and 1st floor (5 mid-size stores, 21 small stores, 4 restaurants, 2 kiosks), including a 3,150 m² GLA Monoprix 1,643 m² of office space on 1st and 2nd floor Building E –
Slide 34: Caserne de Bonne site: economic data
Caserne de Bonne site in Grenoble: economic data Projected rental revenues: Retail: Euro 5.0 million Offices: Euro 0.5 million Car parks: Euro 0.4 million Estimated lease rights: Euro 0.8 million Estimated acquisition price: Euro 92.2 million Build- Build- ing A ing C 2009 full-year results Build- i
Slide 35: Caserne de Bonne site: site photos
Caserne de Bonne site in Grenoble: Site photos 1 Build- Jardin des Vallons Eiffage ing A building Build- ing E Build- ing C Build- ing B Courtyard 2009 full-year results Build- ing D 35
Slide 36: Acquisition of a shopping center near Strasbourg
Acquisition of a shopping center at a Leclerc site located near Strasbourg Partnership with Coop Alsace Aim: joint development of an extension to the Geispolsheim site (Strasbourg outskirts) belonging to Coop Alsace Creation of a joint venture to acquire the shopping mall and develop the extension a
Slide 37: Project offering considerable added value
Acquisition of a shopping center at a Leclerc site located near Strasbourg A project offering considerable added value Development of a services business Investment presenting a yield of 12% and a margin of over 50% with controlled risks (CDAC authorizations and building permits obtained without rec
Slide 38: Strasbourg shopping center project
Acquisition of a shopping center at a Leclerc site located near Strasbourg Project Existing shopping mall GLA of 4,200 m² 18 stores and one indoor mid-size store of 2,000 m² One HM Leclerc of 10,000 m² generating sales of Euro 80 million After extension, a shopping mall with GLA of 6,900 m² (+2,700m
Slide 39: Conclusion and outlook
mercialys L’Esprit Voisin. Conclusion and outlook
Slide 40: 2010: market conditions likely to remain uncertain
2010: market conditions likely to remain uncertain No signs of immediate improvement in market conditions Unfavourable economic data: unemployment / unemployed at the end of their compensation An ongoing crisis and signs of recovery taking time to materialize in Europe Generally negative indexation
Slide 41: Pursuing the strategy while remaining vigilant
In 2010, we intend to pursue the strategy developed while maintaining a vigilant stance Continuing with the implementation of our strategy that was successful in 2009 in an unfavourable environment Continuation of Alcudia / Esprit Voisin development projects: 7 completions in 2010 Ongoing improvemen
Slide 42: Reinforcing our value creation strategy
2010 strategy: reinforcing our value creation strategy A targeted investment strategy... Alcudia developments / Casino pipeline: 7 options to be exercised in 2010 representing a potential investment of around Euro 113.2 million Open market: properties to be worked on ... coupled with an arbitrage st
Slide 43: 2010: assured growth
2010: "assured" growth enables us to begin the year in a strong position and with ambition Euro 8.4 million of "assured growth" at January 1, 2010, representing an impact of +6.3% on rental revenues including: The effects in 2010 of organic growth efforts resulting from renewals and relets in 2009 a
Slide 44: Appendices
1 mercialys L’Esprit Voisin. Appendices
Slide 45: Partnership agreement: new figures
Partnership agreement: new figures Capitalization rates applicable to call options exercised in the first half of 2010 under the Partnership Agreement with Casino Shopping malls Retail parks City center Mainland Corsica Mainland Corsica France and France and Type of property overseas overseas depts&
Slide 46: Detailed income statement
Detailed income statement Euro millions % chg 12/31/07 12/31/08 12/31/09 09/08 Invoiced rents 97.7 113.6 130.9 +15.2% Lease rights 1.8 2.6 3.3 Rental revenues 99.5 116.2 134.2 +15.5% Non-recovered property taxes -0.3 -0.1 -0.2 Non-recovered service charges -1.7 -2.5 -3.1 Property operating expenses
Slide 47: Condensed balance sheet
Condensed balance sheet Assets Euro millions 12/31/08 12/31/09 Investment property 1,231.3 1,573.1 Financial assets 11.7 13.0 Other assets 0.9 1.0 Total non-current assets 1,244.0 1,587.2 Cash and Casino current account 10.6 69.9 Trade and other receivables 13.3 19.9 Total assets 1,267.9 1,677.0 Equ
Slide 48: The portfolio is valued at Euro 2,437 million
The portfolio is valued at Euro 2,437 million Increase of +18.2% in 12 months Appraisal value Number Gross leasable Appraisal net incl. transfer of assets area at 12/31/09 rents Type of asset taxes at 12/31/09* at 12/31/09 Euro % m² % Euro % millions millions Large regional shopping centers 1 126.4
Slide 49: Valuing the pipeline by stage of completion
Valuing the pipeline on the basis of the stage of completion of each project Different rates of probability at each stage of completion The development pipeline, as it currently stands, contains projects presenting major differences in terms of stage of completion and chances of going ahead The valu