Unibail-Rodamco-Westfield SE · EURONEXT:URW
Unibail-Rodamco-Westfield — FY2022 Earnings Presentation
51 slides from Unibail-Rodamco-Westfield's earnings presentation, February 2023
Slide 1: Full-Year Results
FULL-YEAR RESULTS UNIBAIL-RODAMCO-WESTFIELD
Slide 2: FY-2022 Overview
FY-2022 OVERVIEW JEAN-MARIE TRITANT CEO Westfield Euralille
Slide 3: Strong performance and continued deleveraging
Strong performance and continued deleveraging Improved earnings and €2.8 Bn in disposal volumes drive stronger credit metrics – with net debt/EBITDA below 2019 levels Shopping Centre operating performance confirms end of COVID impact Commercial Partnerships revenue up +51% - including growth in medi
Slide 4: Recognised ESG leadership backed by a comprehensive strategy and performance
Recognised ESG leadership backed by a comprehensive strategy and performance Climate A list 5th year › Better Places 2030 strategy All Sectors in a row covers the entire value chain › GHG emission reduction targets approved Sustainability 5-star rating Top 20% by the Science-Based Targets Initiative
Slide 5: 2022 financial highlights
2022 financial highlights +30.2% +34.7% €1.9 Bn 9.6x EBITDA AREPS IFRS NET DEBT NET DEBT REDUCTION TO EBITDA €2,209 Mn in FY-2022 vs. 2021 AREPS vs. December 31, 2021 vs. 13.7x at FY-2021 vs. €1,697 Mn in FY-2021 2022 FULL YEAR RESULTS 5
Slide 6: Consistent improvement in Shopping Centre operating metrics
Consistent improvement in Shopping Centre operating metrics Tenant sales(1) Rent collection As initially reported(2) As % of 2019 Improvement 96% 98% 97% 95% 102% 104% 90% 65% H1-2021 H2-2021 H1-2022 H2-2022 H1-2021 H2-2021 H1-2022 H2-2022 Vacancy rate(3) MGR uplift +9.6% +2.7% 8.9% 7.0% 6.9% 6.5% -
Slide 7: URW locations are outperforming the market
URW locations are outperforming the market Continental Europe United Kingdom United States +45% +34% +12% +9% +7% +8% URW Shopping National Sales URW Shopping National Sales URW Shopping National Sales centres Indices centres Indices centres Indices URW tenant sales(1) 2022 vs. 2021 National Sales I
Slide 8: Tenant sales back to pre-COVID levels
Tenant sales back to pre-COVID levels (1) Europe United States As % of 2019 As % of 2019 110% 107% 108% 102% 100% 98% 95% 94% 93% 91% 88% 86% H1-2022 H2-2022 FY-2022 H1-2022 H2-2022 FY-2022 Footfall Sales Footfall Sales €45.9 Mn €94.5 Mn $81.8 Mn $89.4 Mn Sales Based Rent Other Variable Income(2) Sa
Slide 9: Westfield Stratford City demonstrates portfolio resilience against macroeconomic pressures
Westfield Stratford City demonstrates portfolio resilience against macroeconomic pressures UK operating Attractive destination Desired location environment for visitors by retailers & advertisers › High inflation › Tenant sales at 2019 levels, and › Flagships expansion (9.1% in 2022)(1) 48% above 20
Slide 10: Leasing strategy and stronger commercial tension deliver MGR
Leasing strategy and stronger commercial tension deliver MGR Activity in line Higher volume Focus on small Drives MGR with 2021 & 2019 of long-term deals & medium units volumes & uplift +14.4 % Number of deals GLA (sqm) 12-36 months >36 months GLA for GLA (in % of MGR signed) (in % of MGR signed) Sm
Slide 11: Continuing to upgrade, diversify and refresh our retail mix
Continuing to upgrade, diversify and refresh our retail mix Bringing in Expanding & upgrading NEW & INNOVATIVE CONCEPTS TOP RETAILERS +11% +13% Rotation rate in 2022 Increase in average store size for URW’s top 50(1) retailers in Europe(2) WESTFIELD FORUM DES HALLES WESTFIELD CENTURY CITY WESTFIELD
Slide 12: Retailers optimise their store networks…
Retailers optimise their store networks… Premium locations Other locations +226 New store openings -495 Closed older format stores (~3,000 avg sqm) New store openings in the most prominent Closed stores to optimise space, +129 shopping areas with space and format optimised -321 format and focus inve
Slide 13: … and develop drive-to-store strategies to improve margins
… and develop drive-to-store strategies to improve margins Value creation levers Key impacts Drive Sales synergies of click & collect users buying revenue 67% additional items in store(1) Logistics optimisation 50-90% lower logistic costs of click & collect Click & Protect vs. last mile delivery(2)
Slide 14: Delivering growth through Commercial Partnerships
Delivering growth through Commercial Partnerships 2021 2022 GROUP Gross revenue at 100%(1) Media Launch of Westfield Rise and growth €52 Mn €78 Mn Advertising in media advertising, brand and data revenues EUROPE 2021 2022 Brand Net margin €11 Mn €20 Mn Experience at 100% €30 Mn €46 Mn Specialty Leas
Slide 15: Value creation from 2022 development deliveries
Value creation from 2022 development deliveries LES ATELIERS GAÎTÉ URW SHARE 100% WESTFIELD TOPANGA EXTENSION URW SHARE 55% COPPERMAKER SQUARE URW SHARE 25% URBAN REGENERATION UNLOCKING ASSET VALUE MIXED-USE DENSIFICATION › Community-focused, mixed-use destination › Transformation of former departme
Slide 16: Continued deleveraging progress
Continued deleveraging progress Transactions completed Contribution to IFRS net in 2022 debt reduction in 2022 2023 FOCUS EUROPE €1.6 Bn €1.2 Bn › Committed to the radical reduction of US financial exposure › Streamline remaining US Regional portfolio and unlock additional land value US €1.2 Bn €0.6
Slide 17: Delivering on “Path to 2024” strategy
Delivering on “Path to 2024” strategy Key objectives Targets 2022 Progress Radical reduction of US financial exposure and €4.0 Bn European disposals programme 40% LTV ratio (1) -190 bps Strengthen Retail NRI and Group EBITDA On track at 95%(2) of back to stabilised pre-COVID levels(2) 2023-24 2019 l
Slide 18: FY-2022 Financial Review
FY-2022 FINANCIAL REVIEW FABRICE MOUCHEL CFO Westfield Parquesur
Slide 19: 2022 Full-Year Results
2022 Full-Year Results € Mn FY-2022 FY-2021 Change Lfl Change Shopping Centres 2,024 1,632 +24.0% +21.5%(1) Offices & Others 70 60 +16.0% +23.2% Convention & Exhibition 132 32 n.m. n.m. Net Rental Income 2,226 1,724 +29.1% +27.4%(2) EBITDA 2,209 1,697 +30.2% Recurring Net Result (Group share) 1,339
Slide 20: 2022 Full-Year AREPS at +34.7%
2022 Full-Year AREPS at +34.7% +€0.98 +€3.19 €9.31 Stabilised assets -€1.06 -€0.08 -€0.05 +€1.51 performance Pipeline assets +€0.14 performance €6.91 +€1.54 COVID impact -€0.56 +€0.91 AREPS Disposals (1) Shopping Centres Convention & Taxes and Minority Financial expenses Others (2) AREPS FY-2021 Exh
Slide 21: Strong NRI performance
Strong NRI(1) performance Renewals, Total Lfl relettings net excluding of departures COVID-19 End of COVID-19 & indexation SBR Other rent relief rent relief Total Lfl Continental Europe +1.4% +1.1% +4.9% +7.3% +18.1% +25.4% United Kingdom +0.1% +4.9% -2.3% +2.6% +18.8% +21.4% Total Europe +1.2% +1.4
Slide 22: 2021 inflation passed on through 2022 indexation and SBR
2021 inflation passed on through 2022 indexation and SBR Continental Europe 9% All rents indexed 8% 7% Indexation: +3.6%(1) 6% UK 5% SBR: 9.2% of 2022 UK NRI 4% +97% vs. 2021 3% US 2% SBR(3): 21.5% of 2022 US NRI 1% +64% vs. 2021 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Inflati
Slide 23: 2022 service charges in line with 2019 thanks to proactive measures
2022 service charges in line with 2019 thanks to proactive measures Total service charges(1) (in € Mn) Pre-agreed prices on energy costs for 2022 Service charges 293 evolution 290 -1% Reduction in energy intensity in 2022 vs. pre-COVID: -20%(3) Energy costs evolution +8% 24% 27% 2019 2022 vs. inflat
Slide 24: URW shopping centres located in the best catchment areas
URW shopping centres located in the best catchment areas TOP 12(1) Westfield shopping centres in Europe +34% 85 Mn of purchasing power per capita(2) people in the catchment vs. European average(3) area(4) €32,218 €28,564 €27,975 €27,857 €26,389 €24,860 €25,391 €24,013 €23,016 €21,958 €21,304 EU aver
Slide 25: Rent collection back to pre-COVID level
Rent collection(1) back to pre-COVID level As at February 2nd, 2023 Pre-COVID As initially 2022 levels Group reported As reported H1 H1-2022 98% 96%(2) at H1-2022 H2-2022 H2 H2-2022 97% Improvement FY FY-2022 97% As reported at FY-2022 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 2021 H1 H1-2021 90%
Slide 26: Minor bankruptcy impact on occupancy
Minor bankruptcy impact on occupancy Bankruptcies down -28% Bankruptcies evolution vs. FY-2021 # of stores 391 Cont. Europe UK US URW # of stores 164 2 37 203 261 % of total units 2.1% 0.3% 1.1% 1.7% 250 210 198 In place 114 0 36 150 Replaced 13 0 0 13 102 101 71 In place 77% 0% 97% 80% / replaced V
Slide 27: Improving Shopping Centre vacancy
Improving Shopping Centre vacancy Continental Europe UK US URW 14.0% 12.2% 11.0% 10.6% 10.4% 9.4% 9.1% 8.9% 7.7% 7.0% 6.5% 5.4% 5.0% 4.0% 3.1% 2.5% FY-2019 H1-2021 FY-2021 FY-2022 US Flagships(1) (1) Excluding CBD assets (Westfield San Francisco Centre and Westfield World Trade Center) 2022 FULL YEA
Slide 28: Strong letting activity with increased long-term deals and MGR
Strong letting activity with increased long-term deals and MGR 2022 MGR signed: €441 Mn +26% vs. 2021 | +14% vs. 2019 Continental Europe(1) UK US URW 441 386 232 351 32% 204 187 69 32% 31% 39% 38% 38% 46 54 24% 136 140 5% 17% 110 32% 38% 69% 53% 68% 68% 62% 62% 95% 83% 76% 61% 68% 62% 47% 2019 2021
Slide 29: Positive MGR uplift supported by long terms deals
Positive MGR uplift supported by long terms deals Deals >36 months All deals FY-2021 FY-2022 FY-2021 FY-2022 Continental Continental Europe +4.6% +8.9% Europe -0.5% +6.0% UK -3.7% +3.6% UK -7.6% +3.5% US +1.0% +36.0% US -11.0% +7.8% +1.8% +14.4% -5.2% +6.2% +16.8% +9.6% +11.8% +2.7% +1.3% +2.2% -3.8
Slide 30: Sustainable OCR integrating sales recovery and increased role of stores
Sustainable OCR(1) integrating sales recovery and increased role of stores Continental Europe UK US 19.9% 19.7% 15.5% 15.0% 11.8% 10.5% OCR 2019 OCR 2022 OCR 2019 OCR 2022 OCR 2019 OCR 2022 (1) Occupancy Cost Ratio (“OCR”): (rental charges + service charges including marketing costs for tenants, all
Slide 31: Offices & Others: NRI growth driven by Trinity and deliveries
Offices & Others: NRI growth driven by Trinity and deliveries NRI (€ Mn) FY-2022 FY-2021 Change Lfl Change France 54 35 +53.3% +44.2% Others 16 25 -35.6% -8.4% Total 70 60 +16.0% +23.2% NB: Figures may not add up due to rounding 2022 FULL YEAR RESULTS 31 Trinity, La Défense
Slide 32: Convention & Exhibition: strong recovery of activity in 2022
Convention & Exhibition: strong recovery of activity in 2022 Back to “normal” H1-2023 Paris Olympics From H2-2023 SIMA, Paris Nord Villepinte HIGH LEVEL OF COMMITMENT FROM ORGANISERS 617 events in FY-2022 vs. 721 in FY-2018 433 pre-bookings 2023(1) 86% of 2019 pre- bookings(1) 89% pre-bookings vs. e
Slide 33: Convention & Exhibition: 2022 NOI above 2018
Convention & Exhibition: 2022 NOI above 2018 Change Change N vs. FY-2018 € Mn FY-2022(1) FY-2021 FY-2018 N vs. FY-2018 restated(2) Net Rental 132 32 100 +32.6% +11.4% Income Property Services 58 24 65 -10.8% -9.2% & Other Income Net Operating 190 55 165 +15.5% +3.2% Income (1) Includes a €25 Mn cont
Slide 34: GMV reflects disposals and like-for-like valuations
GMV reflects disposals and like-for-like valuations €54,473 Mn +€874 Mn +€356 Mn €52,250 Mn -€1,800 Mn -€1,282 Mn -€371 Mn December 2021 Disposals CAPEX / Lfl revaluation Non Lfl revaluation & Currency Effect December 2022 Acquisitions / revaluation of shares Transfers 2022 FULL YEAR RESULTS 34
Slide 35: EPRA NRV evolution
EPRA NRV evolution EPRA Net Reinstatement Value(1) (in € per share) €159.60 +€9.66 +€0.90 €155.70 -€4.34 -€7.88 -€2.24 (3) December 2021 Lfl Asset Revaluation Non Lfl Asset Revaluation Recurring Results FX impact Other December 2022 & Intangible Assets (2) (1) Hybrid securities are excluded from NAV
Slide 36: Group shopping centre portfolio valuation
Group shopping centre portfolio valuation Lfl revaluation since Dec. 31, 2018(1) Continental Europe UK US URW (70% of GMV) (5% of GMV) (25% of GMV) -1.3% -2.0% -0.6% -1.6% -2.0% -4.4% -2.6% -5.4% -7.4% -9.1% -8.5% -8.2% -12.6% -11.3% -14.0% -26.3% Revaluation 2019 Revaluation 2020 Revaluation 2021 R
Slide 37: 2022 values reflect increasing Net Initial Yields above other asset classes
2022 values reflect increasing Net Initial Yields above other asset classes Net Initial Yield(1) as at December 31 Continental Europe UK US 6.1% 5.5% 5.3% 5.3% 5.0% 5.0% 4.6% 4.9% 4.6% 4.3% 4.3% 4.2% 4.6% 3.9% 4.0% 4.6% 4.1% 4.0% 2018 2021 2022 2018 2021 2022 2018 2021 2022 Prime logistic NIY(2) URW
Slide 38: Financial ratios improving on net debt reduction and operating performance
Financial ratios improving on net debt reduction and operating performance €24.2 Bn €24.2 Bn FY-2021(2) €22.6 Bn 48.4% 47.1% 45.2% Disposals -€1.8 Bn €22.6 Bn 41.8% 44.7% 43.3% Recurring Earnings -€1.3 Bn 41.2% 14.6x 13.7x 38.6% €20.7 Bn FX +€0.2 Bn 9.9x 9.6x CAPEX +€0.9 Bn Others +€0.1 Bn 2019 2020
Slide 39: The Group’s debt is fully hedged
The Group’s debt is fully hedged Annual projection of average hedging amounts and fixed rate debt up to 2027 (€ Bn- as at December 31, 2022) €30 Bn Proportionate Gross Debt and Hybrids(1) €27.9 Bn €25 Bn Proportionate Net Debt €20 Bn €22.4 Bn €15 Bn €10 Bn €5 Bn €0 Bn 2023 2024 2025 2026 2027 Debt k
Slide 40: Stable 2022 cost of debt despite increasing interest rates
Stable 2022 cost of debt despite increasing interest rates 3.2% 2.1% 1.9% 2.0% 2.0% 1.6% 1.7% 1.7% 2.0% 2.0% 0.2% 0.1% 0.0% -0.3% -0.3% -0.2% -0.4% -0.4% -0.5% -0.5% -0.6% FY-2019 HY-2020 FY-2020 HY-2021 FY-2021 HY-2022 FY-2022 URW Average cost of debt Euro swap 8 years Euribor 3M 2022 FULL YEAR RES
Slide 41: Continued credit market access and strong liquidity
Continued credit market access and strong liquidity Mortgage debt Corporate bank debt TERM LOANS €650 Mn 8.3 years average debt maturity(2) 5-year maturity €302 Mn 7-year maturity Sustainability linked €3.5 Bn cash on hand(3) CREDIT FACILITIES €1.7 Bn €379 Mn(5) raised in 2022(3) €700 Mn(1) 4-year a
Slide 42: Debt maturities fully covered over 3 years
Debt maturities(1) fully covered over 3 years €7.9 Bn Liquidity as at December 31, 2025 €6.2 Bn 2023/2025 debt maturities Undrawn credit 4.4 Bn facilities(2) 3.2 Bn 2025 maturities €1.25 Bn Cash on hand 3.5 Bn 2.2 Bn 2024 maturities Hybrid 0.8 Bn 2023 maturities(3) Sources Maturities Call option + 2
Slide 43: Stable development pipeline
Stable development pipeline €3.2 Bn +€0.3 Bn €3.1 Bn +€0.1 Bn €0.7 Bn -€0.4 Bn €1.9 Bn -€1.3 Bn €0.6 Bn €2.4 Bn €1.2 Bn FY-2021 Deliveries New Cost FY-2022 Invested to Date Remaining to be spent projects increase Committed(1) Controlled(1) (1) Please refer to the appendix to the Press Release publis
Slide 44: Committed to deleveraging plan
Committed to deleveraging plan Objectives Progress €4.0 Bn European €3.2 Bn completed, disposal programme of which €1.2 Bn in 2022 Strong liquidity Radical reduction $1.3 Bn completed, enables URW of US financial exposure of which $0.6 Bn in 2022 to complete the deleveraging Controlled CAPEX of €1.0
Slide 45: Conclusion
CONCLUSION JEAN-MARIE TRITANT CEO Westfield Parquesur
Slide 46: Guidance for 2023
Guidance for 2023 Main assumptions › Consistent performance in our retail operations vs. 2022 with inflation protection › Lower Convention & Exhibition activity in 2023 €9.30 to €9.50 following large events scheduling changes in 2022 2023 Adjusted Recurring Earnings Per Share › Impact of 2022/2023 d
Slide 47: Well positioned for 2023
Well positioned for 2023 Business back to 2019 levels with retailers expanding with us in drive-to-store strategies Demonstrated performance of business model and asset appeal even in a challenging environment Ready to execute on radical reduction of US financial exposure as markets improve Unlockin
Slide 48: Appendix
APPENDIX Westfield Century City
Slide 49: Cost of debt and average debt maturity over time
Cost of debt and average debt maturity over time Average Cost of Debt Average Maturity(2) (years) 3.9% EUR (1) USD & GBP 3.6% 8.4 8.6 3.4% 1.5% 3.8% 8.2 8.3 7.5 2.9% 7.2 7.0 2.6% 6.5 2.2% 5.9 5.4 2.0% 2.0% 4.9 1.6% 1.6% 1.7% 4.3 4.5 1.4% 2010 2012 2014 2016 2018 2020 2022 2010 2012 2014 2016 2018 20
Slide 50: Upcoming debt refinancing
Upcoming debt refinancing In € Bn €14 Bn €14 Bn €7 Bn €4 Bn €3 Bn €2 Bn €1 Bn €1 Bn 0-1 Y 1-2 Y 2-3 Y 3-4 Y 4-5 Y >5Y Without undrawn credit lines and cash on hand With undrawn credit lines and cash on hand Nb: URW’s financial debt profile as at December 31, 2022. On an IFRS basis. Excluding from ch
Slide 51: URW.COM
y UNIBAIL-RODAMCO-WESTFIELD URW.COM
Unibail-Rodamco-Westfield — FY2022 Earnings Presentation on 6ix