Scentre Group · ASX:SCG
Scentre — H1 2020 Earnings Presentation
30 slides from Scentre's earnings presentation, Aug 25, 2020
Slide 1: Scentre Group reports half year operating earnings of $361 million
ASX ANNOUNCEMENT 25 August 2020 SCENTRE GROUP REPORTS HALF YEAR OPERATING EARNINGS OF $361 MILLION For personal use only Scentre Group (ASX: SCG) today released its results for the six months to 30 June 2020 with Operating Earnings of $361 million (6.94 cents per security) and Funds From Operations
Slide 2: ASX announcement (continued)
Conduct (the Code) was mandated by governments throughout Australia and we voluntarily applied these principles to conversations with our New Zealand SME retailers,” Mr Allen said. “We acknowledge that this has been a difficult time for our customers and our retail partners. We have For personal use
Slide 3: Further information
Further information: Company Secretary Investor Relations Corporate Affairs/Media For personal use only Maureen McGrath Andrew Clarke Alexis Lindsay +61 2 9358 7439 +61 2 9358 7612 +61 2 9358 7739 About Scentre Group: Scentre Group (ASX Code: SCG) is the owner and operator of Westfield in Australia
Slide 4: Westfield Miranda, NSW / Newmarket, NZ
For personal use only Half Year Results 2020 Westfield Miranda, Newmarket, NSW NZ
Slide 5: Half Year Update June 2020
Half Year Update For personal use only 30 June 2020 All 42 Westfield Living Centres have remained open, safe and trading during the pandemic “A fundamental strength - Implementing and communicating the highest levels of health and safety standards of our business is the - Providing essential service
Slide 6: Scentre Group Overview
Scentre Group Overview For personal use only Our Purpose Extraordinary platform of 42 Living Centres Creating extraordinary places, connecting and enriching communities Our Plan Customer centric strategy, focused on delivering extraordinary experiences, every day We will create the places more peopl
Slide 7: Half Year Results June 2020
Half Year Results For personal use only 30 June 2020 Cents per Cents per $m security security incl-ECC incl-ECC excl-ECC1 “At the onset of the Operating Earnings (OE)2 $361 million 6.94 11.41 pandemic, we acted quickly to secure additional funding, Funds From Operations (FFO) $362 million 6.96 11.43
Slide 8: Customer Visitation and Store Openings
Customer Visitation and Store Openings For personal use only All 42 Westfield Living Centres have remained open and trading, providing for their communities during the pandemic Australia New Zealand 120% 140% 128% 127% 103% 120% 119% 100% 100% 120% 82% 84% 81% 100% 92% 80% 64% 80% 60% 60% 100% 100%
Slide 9: Gross Rent Cash Collections
Gross Rent Cash Collections For personal use only 120% 1H20: 70% or $875m 100% Q1: 90% or $574m Q2: 48% or $301m 94% 94% 80% 82% 82% 80% 60% 40% 35% 28% 20% $200m $200m $174m $59m $74m $168m $172m 0% January February March April May June July The Group collected $875 million (70%) of total billings
Slide 10: Retailer Activity
Retailer Activity For personal use only COVID Activity1 Leasing Activity Agreed - SME retailers (Code) 1,624 Portfolio Leased 98.8% To be agreed - SME retailers (Code) 976 Lease Deals Number – Total Deals 596 Agreed - other retailers 814 Lease Deals Area (sqm) – Total Deals 103,024 To be agreed - ot
Slide 11: Strategic Location of Portfolio
Strategic Location of Portfolio For personal use only High quality retail property – strategically located in close proximity to where people live > 16 million > 16 million people living in metropolitan and surrounding areas are within a 30-minute drive of a Westfield Living Centre Brisbane 84% 6 CE
Slide 12: Customer Initiatives
Customer Initiatives Connected Customer Experience For personal use only By listening to and understanding what our customers “We are accelerating the implementation of our want, we can enhance their experience Connected Customer Experience” PETER ALLEN CEO We want to Remove friction And Create new
Slide 13: Westfield Direct
Westfield Direct For personal use only The contactless drive-thru click and collect service was launched in all 42 Westfield Living centres during the peak period of COVID lockdown Retailers participated across every centre in Australia and New Zealand 14,000+ products available from 590 retailers O
Slide 14: Westfield Plus
Westfield Plus Introducing Westfield Plus For personal use only Our membership program. Designed to drive value for our customers by removing friction in centre, personalising communications & rewarding engaged members with exclusive benefits. Now live in 12 Westfield Living centres. Rolling out to
Slide 15: We are a Responsible, Sustainable Business
We are a Responsible, Sustainable Business For personal use only Community Environmental People Economic Connecting and enriching Net zero emissions by 20301 We will be the place for talent to We will deliver long term sustainable communities thrive returns through economic cycles – Scentre Group ha
Slide 16: Summary
Summary For personal use only The health, safety and wellbeing of our customers, retailers and people is our number “We own and operate major one priority - We will continue to follow government and health advice essential social infrastructure in the best locations and The fundamentals of the Group
Slide 17: Funds From Operations
Funds From Operations For personal use only 6 months to 6 months to Funds From Operations 30 Jun 2020 30 Jun 2019 $m Property revenue 1,146.1 1,235.4 Property expenses (249.4) (264.2) Net Operating Income 896.7 971.2 Management income 20.9 23.4 Income 917.6 994.6 Overheads (41.9) (42.5) Adjust: Stra
Slide 18: Financial Position: Balance Sheet
Financial Position For personal use only Balance Sheet $m 30 Jun 2020 31 Dec 2019 Total Property Investments 34,186.8 38,172.6 Other Assets 1,275.5 923.6 Total Assets1 35,462.3 39,096.2 Interest Bearing Liabilities2 13,618.1 12,902.3 Other Liabilities 2,105.2 1,957.0 Total Liabilities 15,723.3 14,85
Slide 19: Debt Metrics
Debt Metrics For personal use only 30 June 2020 Debt metrics Net Debt $13.6bn $4.4bn 81% Gearing (look through basis) 38.4% Liquidity1 Interest Weighted average interest rate 4.0% rate hedging Weighted average debt maturity1 4.8 years Liquidity1 Interest rate exposure hedged percentage $4.4bn 81% 3.
Slide 20: Debt Profile
Debt Profile1 For personal use only Maturity Profile Facilities & Liquidity $ billion % $bn 3.5 Bonds 3.0 USD 28% 5.0 EUR 22% 3.9 2.5 GBP 8% 1.5 2.0 AUD 2% 0.4 1.5 HKD 1% 0.1 Total 61% 10.9 1.0 Bank Facilities 0.5 Drawn 15% 2.8 Undrawn 24% 4.3 - 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Tota
Slide 21: Appendices
Appendices For personal use only Westfield North Lakes, QLD Half Year Results 2020 18
Slide 22: Development Activity
Development Activity For personal use only Total Project SCG Share Completion Cost $m $m Active Projects Carindale 50 16 10 Sep 2020 Total Projects 50 16 Target returns from development of greater than 7% yield and greater than 15% IRR Doncaster ELP1 Total Special Projects 90 67 Belconnen Myer Horns
Slide 23: Future Retail Developments
Future Retail Developments For personal use only Albany (NZ) > $3bn 1 2 Barangaroo (NSW) Future Retail Developments 3 Booragoon (WA) 4 Doncaster (VIC) 5 Eastgardens (NSW) 6 Knox (VIC) 7 Liverpool (NSW) 8 Marion (SA) 1 10 3 9 9 Sydney (NSW) 8 7 2 5 10 Warringah Mall (NSW) 4 6 In addition, the Group h
Slide 24: Retailer In-Store Sales
Retailer In-Store Sales For personal use only Like-for-like in-store sales1 Total in-store sales were 8.1% lower for the half and 3.5% lower for the year Specialty 6 months to 12 Months to Sales by Region 30 Jun 2020 30 Jun 2020 Specialty in-store sales were 12.1% lower for the half and 4.8% lower f
Slide 25: Cash Flow
Cash Flow For personal use only Cash flows from operating activities – proportionate Equity 6 months to $m Consolidated Accounted 30 Jun 2020 Receipts in the course of operations (including GST) 969.9 89.5 1,059.4 Payments in the course of operations (including GST) (404.4) (27.4) (431.8) Net operat
Slide 26: Profit & FFO
Profit & FFO For personal use only Statutory Profit FFO Financial Reconciliation from Profit to FFO 6 months to FFO 6 months to Statement $m 30 Jun 2020 Adjustments 1 30 Jun 2020 Notes A B C=A+B 1. FFO adjustments relate to property Property revenue 2 1,110.1 36.0 1,146.1 revaluations, mark to marke
Slide 27: Balance Sheet
Balance Sheet For personal use only Balance Sheet – Proportionate1 Equity Debt $m Consolidated Accounted Reclassifications 30 Jun 2020 A B C D = A +B + C Cash 927.2 10.1 (937.3) — 1. Period end AUD/NZD exchange rate Property Investments 1.0694 at 30 Jun 2020 – Shopping centres 30,834.3 2,817.7 — 33,
Slide 28: Interest Rate Hedging
Interest Rate Hedging For personal use only 30 June 2020 1 Hedge Maturity Profile Interest Rate Hedging $ billion $bn Fixed Rate 12.0 Net Debt 13.6 10.0 2.46% 2.42% 2.19% Fixed Rate Debt 8.0 2.07% $ Fixed rate debt 0.4 3.31% 6.0 2.05% 1.83% 4.0 Derivatives 1.20% 2.0 $ Swap Payable 9.9 2.25% NZ$ Swap
Slide 29: Property Valuations June 2020
Property Valuations 30 June 2020 For personal use only AUSTRALIA (A$m) Ownership Book Value Retail Cap Rate Economic Yield AUSTRALIA (A$m) Ownership Book Value Retail Cap Rate Economic Yield AUSTRALIAN CAPITAL TERRITORY VICTORIA Belconnen 100% 770.0 5.75% 6.16% Airport West 50% 180.0 6.00% 6.98% Wod
Slide 30: Important Notice
Important Notice For personal use only All amounts in Australian dollars unless otherwise specified. The financial information included in SCENTRE GROUP LIMITED ABN 66 001 671 496 this document is based on the Scentre Group’s IFRS financial statements. Non IFRS financial information included in this