Scentre Group · ASX:SCG

Scentre — Debt Investor Presentation (September 2020)

26 slides from Scentre's debt investor presentation, September 2020

  1. Slide 1: Government

    Government stions seating is limited to 30 in Zone 2

  2. Slide 2: Disclaimer

    Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, EXCEPT TO “QUALIFIED INSTITUTIONAL BUYERS" (AS DEFINED IN RULE 144A UNDER THE U.S. SECURITIES ACT) IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAW.

  3. Slide 3: Proposed subordinated notes issue

    Proposed subordinated notes issue Scentre Group is considering a subordinated notes issue as part of its ongoing capital management strategy Indicative terms" Currency (format) USD (Rule 144A / Reg S) Target tranches Non-call 6 year and non-call 10 year Benchmark per tranche [currency format) | [Tar

  4. Slide 4: Scentre Group overview

    Scentre Group overview Extraordinary platform of 42 Westfield Living Centres * Customer centric strategy, focused on delivering extraordinary experiences, every day — More than 500 million customer visits per annum! -— Regarded as the first choice platform for retail and brand partners to connect an

  5. Slide 5: Our Purpose

    Our Purpose Creating extraordinary places, connecting and enriching communities Our Plan We will create the places more people choose to come, more often, for longer Our Strategy We will be customer obsessed, We will be true business We will be the place for talent to We will deliver long term deliv

  6. Slide 6: High quality portfolio

    High quality portfolio Proven resilience throughout economic cycles * Portfolio consists of Regional, Super Regional and CBD shopping centers + Located in densely populated metropolitan trade areas with historically strong demographics for growth * 99% occupancy for the past 25 years! Stable cash fl

  7. Slide 7: Strategic location of portfolio

    Strategic location of portfolio High quality retail property — strategically located in close proximity to where people live Brisbane eceNTERS . Australia & New Zealand Portfolio ese, Adelaide 80% Scentens e ga% — Canbene Melbourne Auckland 42 > 500m' : Westfield Living Cent Annual iving Centres 9 C

  8. Slide 8: Half year update

    Half year update June 30, 2020 All 42 Westfield Living Centres have remained open, safe and trading during the pandemic * Implementing and communicating the highest levels of health and safety standards + Providing essential services to communities We have accelerated our Customer Initiatives * West

  9. Slide 9: Half year results

    Half year results June 30, 2020 Operating Earnings ("OE")! A$361 million Funds From Operations ("FFO") A$362 million Receipts in the course of operations (incl GST? A$1,059 million Net Operating Cashflow (Surplus? A$261 million FFO to Debt* 9.2% Interest Cover+ 3.6 times “At the onset of the pandemi

  10. Slide 10: 127% 128% 103% 120% 119% 100% 82% 81% 84% 92% 64% 60% 100% 00%

    127% 128% 103% 120% 119% 100% 82% 81% 84% 92% 64% 60% 100% 100% 43% 92% 93% 82% 100% 100% 94% 95% 100% 16% 46% 44% 2% 3%

  11. Slide 11: A$200m A$200m A$174m A$59m A$74m A$168m A$172m A$183m

    94% 94% 86% 82% 80% 82% 35% 28% A$200m A$200m A$174m A$59m A$74m A$168m A$172m A$183m

  12. Slide 12: Retailer activity

    Retailer activity Lease structures with retail partners have not changed since the onset of the pandemic * Supporting our 2,600 SME retail partners, which contributes “30% of rental income, the Group has implemented the Commercial Leasing Code of Conduct across its Australia and New Zealand portfoli

  13. Slide 13: We are a responsible, sustainable business

    We are a responsible, sustainable business + Extensive community and government authority engagement has meant we have been able to keep all our Living Centres open throughout the period, implementing approved safety protocols * In Victoria we have worked with the state government and enabled them t

  14. Slide 14: Customer initiatives

    Customer initiatives By listening to and understanding what our customers want, we can enhance their experience Westfield Direct 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 eve

  15. Slide 15: Retail diversification

    Retail diversification Category contribution to A$25 billion of total retailer in-store sales! 18.0% 16.0% 14.0% 12.0% 10.0% 97 8.0% 8.0% 6.0% 4.0% 2.0% 1.8% 0.0% 2 2 2 4 » = D> s 5 > 2 ” 2g eb, £ g 3 F e & g & Bs g Fa ges g a cf & ral 4 2 g $5 $ E 88g fo) a - 3 e 2 & £8 S 2 a a8 3 & ge} S $ ia) £ &

  16. Slide 16: Lease expiry profile

    Lease expi ry p rofi le’ Unexpired weighted average lease term Anchor retailers 8.4 years Specialty retailers 3.2 years Weighted total 6.0 years Lease expiry profile — specialty store area Lease expiry profile — total store area Specialty store retailers Total portfolio % leased area % leased area 1

  17. Slide 17: Capital management

    Capital management Recent initiatives * — Raised and extended in total A$5.8bn of funding, including A$3.4bn of bank facilities and A$2.4bn of long term bonds to provide liquidity of A$4.4bn! * Cancelled the equity security buy-back program * Determined not to pay an interim distribution for the hal

  18. Slide 18: Debt profile

    Debt profile’ As of June 30, 2020 Maturity profile Facilities and liquidity A$ bi % A$bn 35 Bonds a to) a usD 28% 5.0 3.0 EUR 22% 3.9 os GBP 8% 15 AUD 2% 0.4 2.0 HKD. 1% 0.1 Total 61% 10.9 ‘ Bank Facilities \ Drawn 15% 28 Undrawn 24% 43 0 Total 39% TA L | Total Facilities 100% 18.0 2021 2022» 2023S

  19. Slide 19: Debt metrics

    Debt metrics As of June 30, 2020 Debt metrics Net Debt A$13.6bn Gearing (look through basis) 38.4% Weighted average debt maturity! 4.8 years Liquidity’ A$4.4bn Interest rate exposure hedged percentage 81% Investment grade long term senior credit ratings Standard & Poor's A(Negative) Fitch A (Negativ

  20. Slide 20: Senior debt covenants

    Senior debt covenants Significant headroom to all covenants — to be further enhanced by the proposed subordinated notes issue Senior debt covenants Requirement Jun 30, 2020! Net Debt / Net Assets Not greater than 65% 39.4% Secured Debt / Total Assets Not greater than 45% of total assets 0.8% EBITDA

  21. Slide 21: Summary

    Summary The health, safety and wellbeing of our customers, retailers and people is our number one priority * We will continue to follow government and health advice The fundamentals of the Group remain strong and the business is well positioned to deliver long-term sustainable returns through econom

  22. Slide 22: Appendix

    Appendix

  23. Slide 23: Development activity

    Development activity Total project Scentre cost Group share A$m A$m Completion Active projects Carindale 50 16 September 10, 2020 Total projects 50 16 Doncaster ELP' Total special projects 90 67 Belconnen Myer Hornsby Harvey Norman SCENTRE GROUP

  24. Slide 24: Retailer in-store sales

    Retailer in-store sales Like-for-like in-store sales! * Total in-store sales were 8.1% lower for the half and 3.5% lower for the 12 months ended June 30, 2020 * Specialty in-store sales were 12.1% lower for the half and 4.8% lower for the 12 months ended June 30, 2020 * Majors in-store sales were 4.

  25. Slide 25: New Cases (#)

    6,460,250 517,133 347,152 324,777 277,634 251,724 131,895 26,279 1,772 USA Spain UK France Italy Germany Canada Australia New Zealand Total Cases 1,000 750 New Cases (#) 500 250 0 25 Jan 14 Feb 5 Mar 25 Mar 14 Apr 4 May 24 May 13 Jun 3 Jul 23 Jul 12 Aug 1 Sep

  26. Slide 26: Borrowing and credit structure

    Borrowing and credit structure Stapled structure is common in Australia, particularly among REITs * Separate legal entities operate as a single economic unit. Cannot be traded separately * Allentities in the borrowing and credit structure guarantee each other ona joint and several basis * Guarantor

Scentre Group — Debt Investor Presentation (September 2020) on 6ix