Icade Sa · EURONEXT:ICAD

Icade Sa — ANF Immobilier — FY2017 Earnings Presentation

37 slides from Icade Sa's earnings presentation, Feb 12, 2018

  1. Slide 1: Analyst Presentation

    Analyst Presentation 12 February 2018

  2. Slide 2: Disclaimer

    Disclaimer This presentation is not an offer or an invitation to sell or exchange securities, or a recommendation to subscribe, buy or sell ANF Immobilier securities. Distribution of this document may be restricted in certain countries by legislation or regulations. As a result, any person who comes

  3. Slide 3: Contents

    Contents 01 2017 - P.4 Highlights Strategy 02 Pipeline - P.14 03 Finance - P.21 04 Conclusion - P.28 3

  4. Slide 4: Highlights - Year 2017 Strategy

    01 2017 HIGHLIGHTS - YEAR 2017 STRATEGY 4

  5. Slide 5: Accelerating the transformation

    Accelerating the transformation A pure commercial real estate leader in regions Gross Rental Adjusted Commercial NNNAV/share Income EPRA Earnings Portfolio 21.8€ 46.6 M€ Stable 648 M€ Debt LTV ratio 22 % Group share 38.4 M€ Group share 15.8 M€ Group share 480 M€ Like-for-like +2% IFRS -96.1 M€ 99% c

  6. Slide 6: Highlights - Year 2017 Strategy

    01 2017 HIGHLIGHTS - YEAR 2017 STRATEGY 6

  7. Slide 7: Going further with the 3 pillars of our strategy

    Going further with the 3 pillars of our strategy I/ LOCATION II/ ASSET TYPE III/ INVESTMENT Dynamic regional Focus on commercial Add value through metropolises real estate active asset management Geographically targeting results Diversification results Active asset management in higher value creatio

  8. Slide 8: First pillar – France's most dynamic regional cities

    First pillar – France’s most dynamic regional cities Balancing the portfolio in a relevant manner 2017 Metamorphosis A relevant profile Portfolio Value IFRS 31/12/2017 compared to 31/12/16 M€ 1 200 Hôtels - 14% 1 000 Toulouse vs 7% 3% -399 vs 0% Lyon 800 48% Marseille vs 30% 1,068 -106 +23 - 17% 600

  9. Slide 9: Second pillar – Focus on commercial real estate

    Second pillar – Focus on commercial real estate Spotlighting high yield, low vacancy and secured commercial real estate 31/12/2016 Passing rent IFRS 31/12/2017 Passing rent IFRS published Other 3% EPRA Other 1% EPRA Vacancy Vacancy Rate Rate Hotels Hotels 11% Retail 16% 31/12/2016 31/12/2017* 2% Res

  10. Slide 10: Third pillar – Adding value

    Third pillar – Adding value Investment management and a focus on development Controlling Lafayette Acquisition Launching Marseille development project Toulouse projects Part Dieu Controlling the Le Castel off-plan New turf restructuring Positive acquisition & Rive Neuve for ANF Immobilier (Acquired

  11. Slide 11: Third pillar – Adding value

    Third pillar – Adding value Asset management tailored to our clients’ needs Bordeaux Marseille Bordeaux Marseille Quai 8.2 offices Rive Neuve La Fabrique offices Erasmus+ France / SCUB + 359 sqm, Cap Vert Energie Education Formation Now Coworking + 1 538 sqm, TGS + 319 sqm, + 3 112 sqm offices Condi

  12. Slide 12: Third pillar – Sustainable development

    Third pillar – Adding value Sustainable development Towards a certified portfolio (offices - % areas certified) 75% 70% 65% Women on 70% 60% management 55% 70% board 50% 62% 62% 64% by 2020 54% 100% 45% 40% 2016 2017 2018 2019 2020 Employees involvement Responsible Purchasing Charter to enhance the

  13. Slide 13: 2017 results

    2017 results Stable Adjusted EPRA Earnings considering the exceptional 2017 disposal EPRA Earnings (adjusted) M€ 18 16 14 12 10 8 15,8 15,8 14,6 13,1 13,5 6 4 2 0 2013 2014 2015 2016* 2017 2017 Stable Adjusted EPRA Earnings In line with guidance 13 *2016 published Adjusted Epra Earnings 16.3 M€ was

  14. Slide 14: Perspectives

    Perspectives Going further through a high yield pipeline to bolster momentum Consolidated Pipeline 200 M€ Group Share Pipeline 132 M€ Development Rive Neuve Lafayette BC Park View Potential Marseille Lyon projects 8 M€ Lyon 15 M€ 55 M€ rental income c.a. 10.5 M€ 2018 2019 2020 Group Share Off-plan Q

  15. Slide 15: Portfolio

    Portfolio aX Pan

  16. Slide 16: Bordeaux – Quai 8.2

    Bordeaux Quai 8.2 Off-plan acquisition / Euratlantique 65% 77% Offices Hotel ADJACENT TO THE NEW HIGH SPEED TRAIN RAILWAY STATION  Offices - Partnership with Foncière des Régions (65% ANF)  Hotel – Partnership with CEPAC (77% ANF)  Developed by Vinci and ANF Immobilier (50% ANF)* TAKING ADVANTAGE

  17. Slide 17: Marseille – Rive Neuve

    Marseille Rive Neuve Development project / Vieux Port 100% EXCEPTIONAL LOCATION Quai de Rive Neuve in the 7th district of Marseille In the heart of the Vieux-Port, facing the sea RESTRUCTURING AN EXISTING BUILDING 5 stories high - 3 112 m² 8 M€ investment (on top of existing) Works launched in

  18. Slide 18: Marseille – Le Castel

    Marseille Le Castel Off-plan acquisition / Euromed 100% MARKETING LAUNCHED  20 M€ investment signed in Q4 2017  5 960 m² offices and 58 parking lots  Proximity to Quai de la Joliette and the sea  Definitive planning permit obtained  Rental value between 225 €/m² and 300 €/m² Delivery Q2 2019 Po

  19. Slide 19: Lyon – Lafayette BC Development Project

    Lyon Lafayette BC Devlopment Project (Areva)/ Part-Dieu 54% A HIGH YIELD INVESTMENT PARTIAL RESTRUCTURING WITH A HIGH POTENTIAL LAUNCHED – Q1 2018  Partnership with Crédit Agricole Assurances (44%) and DCB Group (1%)  7 115 sqm – 15 M€ Works (8 M€ Group Share) on top of existing  Acquisition in 2

  20. Slide 20: Lyon – Park View

    Lyon Park View Development project / Tête d’Or 51% Steps Figures THE ADDITIONAL VALUE CREATION OPPORTUNITY FROM Acquisition of the Acquisition existing building, 9 000 m² offices ADELY* received a rental 19 M€ initial investment  Partnership with Crédit Agricole income for 1.5 years Assurances (45%

  21. Slide 21: Finance

    FINANCE aX Pan

  22. Slide 22: IFRS Top Line decreased by 9% in 2017, like-for-like Group Share up 2%

    IFRS Top Line decreased by 9% in 2017, like-for-like Group Share up +2% M€ 60 50 +0.3 -0.1 -4.8 +1.5 -1.6 40 51.2 30 46.6 Group Share Group 20 Share 41.3 38.4 10 - Gross Rental Lyon Bordeaux Marseille Toulouse Hotels Gross Rental Income 2016 Income 2017 Diversified Average lease and reliable term of

  23. Slide 23: Key figures

    Key figures 31/12/2017 31/12/2016 M€ EPRA IFRS EPRA IFRS Chg. EPRA Chg. IFRS Gross rental income 46.6 46.7 51.2 51.2 -9.0% -9.0% Net operating expenses - 3.8 - 3.8 - 3.7 - 3.7 Net rental income 42.9 42.9 47.6 47.6 -9.9% -9.9% Margin 91.9% 91.9% 92.8% 92.8% Administrative expenses - 14.4 - 14.4 - 9.8

  24. Slide 24: Consolidated balance sheet

    Consolidated balance sheet M€ 800 Other 24 Other 31 700 Cash 66 Including 65M€ 600 Debt Current accounts 275 Minority shareholders 500 400 Portfolio Value Assets 300 647 Including: Shareholders' - 34 M€ Minority interests 200 equity - 21 M€ Treasury shares 431 - 2 M€ Hedging reserves 100 0 Assets Li

  25. Slide 25: Gross Asset Value in details

    Gross Asset Value in details Investments  Quai 8.2 – Bordeaux – 29 M€  Centreda – Toulouse – 19 M€ M€  Lyon (Lafayette, Park view, Adely) – 8 M€ 1 200  Marseille (Le Castel, Rive Neuve) – 6 M€ - 1 000 - 399 800 1,068 Disposals 600 -106 +62 +23 -  Primonial – 505 M€ including -22 M€ fair Group -

  26. Slide 26: EPRA NNNAV/share

    EPRA NNNAV EPRA NNNAV/ share 21.8 € (after a payment of 1.15€/share dividend) €/share 30,0 1,15 25,0 -6.4 -0.3 +1.1 20,0 +1.3 15,0 27,3 26,1 21,8 10,0 5,0 - Triple Net NAV Dividend Triple Net NAV Disposal Portfolio Fair Debt and Cash Flow Triple Net NAV 31/12/2016 31/12/2016 Primonial's Value Change

  27. Slide 27: Dividends for Shareholders

    Dividends for Shareholders €/share 1,40 1.24 1,20 1,15 1,10 1,05 1,00 1,00 0,80 0,80 0,60 0,40 0,20 - 2013 2014 2015 2016* 2017* 2018 Dividend of 0.80€/share 92% of Adjusted EPRA Earnings In line with industry standards 27

  28. Slide 28: Conclusion

    CONCLUSION aX Pan

  29. Slide 29: Shareholding structure & Governance

    Shareholding structure & Governance An eventful year Stock Price reflecting NNNAV EPRA (21.85€/share - 02/01/2017) €/share Exclusive negotiations Ownership structure– 31/12/2017 Eurazeo/Icade Offer u 24 1 400 000 23 1 200 000 SOGECAP 4% Treasury Float 22 1 000 000 shares 7% 4% 21 800 000 Icade 20 Co

  30. Slide 30: Launch of the proposed merger of ANF Immobilier into Icade

    Launch of the proposed merger of ANF Immobilier into Icade Two congruent portfolios Approval by the Supervisory Board and the Management Board of ANF Immobilier and by the Board of Directors of Icade of the principle of a merger of ANF Immobilier into Icade The rationale: 1) aligning with the Icade

  31. Slide 31: Q&A

    Q&A 31

  32. Slide 32: Balance Sheet IFRS – Assets

    Balance Sheet IFRS Assets En milliers d'euros 31/12/2017 31/12/2016 Variations 31/12/2015 ACTIFS NON COURANTS note Immeubles de placement 1 645 218 1 066 016) ~420 798) 1 078 480 Immobilisations en-cours 1 430) 0 430 0 Immeubles d'exploitation 1 1 459} 1 533 -74) 1 649) Immobilisations incorporelles

  33. Slide 33: Balance Sheet IFRS – Liabilities

    Balance Sheet IFRS Liabilities 33

  34. Slide 34: P&L Recap

    P&L Recap ae En milliers d'euros 31/12/2017 31/12/2016 Variations 31/12/2015 Chiffre d'affaires : loyers 46 650 51 239) 4 590} 49 155) Autres produits d'exploitation 9077 8 806) 271 6 014 TOTAL DES PRODUITS D'EXPLOITATION 55 726 60 045} 4318} 55 166] Charges sur immeubles ~10 568 -9 591 -978) -9 147

  35. Slide 35: EPRA Vacancy rate

    EPRA Vacancy rate EPRA Vacancy rate 2017 TYPE Offices Retail Residential Hotels Other Total Lyon 0.6% 0.0% N/A N/A 43.4% 0.8% Bordeaux 6.9% 0.0% N/A N/A 40.3% 6.9% Marseille 14.6% 15.3% 34.8% N/A 30.5% 16.0% Toulouse 4.9% N/A N/A N/A 100.0% 5.6% Hotels N/A N/A N/A 0.0% N/A 0.0% Total 5.3% 10.5% 34.8

  36. Slide 36: EPRA yields

    EPRA yields 2017 % Lyon Bordeaux Marseille Toulouse Hotels Total EPRA Net Initial Yield 6.1% 5.6% 4.7% 7.7% 6.0% 5.8% EPRA Topped-up 6.1% 5.6% 4.7% 7.8% 6.0% 5.8% Net Initial Yield 2016 % Lyon Bordeaux Marseille Toulouse Hotels Total EPRA Net Initial Yield 6.1% 5.1% 3.4% N/A 6.1% 4.5% EPRA Topped-up

  37. Slide 37: investorrelations@anf-immobilier.com

    investorrelations@anf-immobilier.com 37

ANF Immobilier — FY2017 Earnings Presentation on 6ix