Unibail-Rodamco-Westfield SE · EURONEXT:URW
Unibail-Rodamco-Westfield — FY2021 Earnings Presentation
52 slides from Unibail-Rodamco-Westfield's earnings presentation, February 2022
Slide 1: Full-Year Results
FULL-YEAR RESULTS UNIBAIL-RODAMCO-WESTFIELD
Slide 2: FY-2021 Overview
FY-2021 OVERVIEW JEAN-MARIE TRITANT CEO Lady Gaga concert, Westfield Les 4 Temps
Slide 3: 2021 in review
2021 in review Confirmed recovery in H2 with tenant sales approaching pre-COVID levels with positive footfall trajectory Proactive leasing strategy to protect long- term value as conditions improve Significant improvement in occupancy demonstrating retailer demand Well-positioned to keep capitalisin
Slide 4: Clear recovery in H2-2021
Clear recovery in H2-2021 93% €71.9 Mn 92% tenant sales as % of 2019 sales based rent rent collection (vs. 62% in H1) (vs. €34.2 Mn in H1) (vs. 73% in H1) +190 bps +2.2% €56.7 Mn occupancy improvement MGR uplift for leases C&E NOI (vs. -60 bps in H1) >36 months (vs. +1.3% in H1) (vs. -€1.5 Mn in H1)
Slide 5: 2021 financial performance reflects operating conditions and deleveraging progress
2021 financial performance reflects operating conditions and deleveraging progress +4.7% -€1.6 Bn -140 bps 2021 AREPS IFRS net debt IFRS LTV restated for disposals reduction improvement vs. 2020 AREPS (43.3% vs. 44.7% at FY-2020) 2021 FULL YEAR RESULTS 5
Slide 6: ESG integrated throughout business thanks to Better Places 2030 strategy
ESG integrated throughout business thanks to Better Places 2030 strategy Continued progress across all pillars in 2021 Recognised leader Joined Net Zero Initiative Developing a collective framework for carbon neutrality 1.5 million vaccinations administered to 1st in RE industry and 5th people at UR
Slide 7: Substantial progress on deleveraging
Substantial progress on deleveraging European disposal programme Positioned for radical reduction Strict CAPEX control (2021/22) of financial exposure to the US €2.5 Bn of €4.0 Bn target agreed €0.5 Bn of debt reduction €1.0 Bn of CAPEX spent in line or completed through portfolio streamlining with
Slide 8: US strategy on track
US strategy on track Superior Quality Mall Recovery Markets Opening 95% of URW’s US shopping centres Strong mall operating fundamentals Financing market improving are in the “A” rating category(1) with for A-rated malls an average sales density(2) of $724 URW Flagship destinations per sq. ft. compet
Slide 9: Macro challenges partially offset by positive consumer trends
Macro challenges partially offset by positive consumer trends Labour shortages Supply chain disruption COVID-19 restrictions +40% Global Supply Chain Pressure 94 higher retail worker turnover Index hits peak levels and is 4 Days of closure in 2021 in Europe, in the US compared to 2020 st. dev. above
Slide 10: Tenant sales in H2-2021 reaching pre-COVID levels
Tenant sales in H2-2021 reaching pre-COVID levels Group figures, as percentage of 2019 levels: 93% 93% 79% 81% 74% 63% 49% 46% Q1 Q2 Q3 Q4 Footfall Sales 2021 FULL YEAR RESULTS 10
Slide 11: US tenant sales now at pre-COVID levels
US tenant sales now at pre-COVID levels US tenant sales (vs. 2019) Select category results H2-2021 (vs. H2-2019) 108% 104% 102% 104% Category Sales 97% 98% 83% 77% Luxury +42% Home +22% Food Stores & Mass Merchandise +9% Fashion +1% Q1 Q2 Q3 Q4 F&B -4% Sales Sales non-CBD Flagships(1) Entertainment
Slide 12: Broad-based recovery in Europe, despite remaining restrictions
Broad-based recovery in Europe, despite remaining restrictions H2-2021 (in % of H2-2019) Select category results H2-2021 (vs. H2-2019) Category Sales Footfall Sales Continental Europe 81% 92% Sport +5% Food Stores & Mass -2% UK 78% 83% Merchandise Health & Beauty -3% Europe 81% 90% Fashion -12% F&B
Slide 13: Leasing strategy supports higher activity and long-term rental value
Leasing strategy supports higher activity and long-term rental value 2,399 leases signed (vs. 2,359 in 2019) 1. Long-term leases (>36 months) 2. Short-term leases (≤36 months) › Standard lease terms with MGR and an SBR top-up › Pragmatic approach to lease terms › Demanding on the tenant quality › Pr
Slide 14: URW is the preferred partner for top brands
URW is the preferred partner for top brands # deals in 2021 +194% +196% in GLA in GLA 13 Deals 8 Deals 5 Deals 8 Deals Nike flagship in Westfield London JD Sports in Westfield La Maquinista +74% +246% in GLA in GLA 11 Deals 7 Deals 6 Deals 5 Deals Overall GLA(1) increased by +12.0% between 2019 and
Slide 15: Emerging concepts choosing URW Flagship destinations
Emerging concepts choosing URW Flagship destinations Pro-active strategy to introduce sustainable and inclusive brands including second-hand stores Amazon 4-star in Westfield London Food Society in Westfield La Part-Dieu Youseum in Westfield Mall of the Netherlands Thérapie Clinic in Westfield Londo
Slide 16: Ongoing recovery in variable revenue streams
Ongoing recovery in variable revenue streams H&M Circular Design Story in Westfield WTC Google Pop-Up in Westfield La Maquinista Infiniti car show in Westfield WTC Premium parking in Westfield Century City Deepscreen technology in Westfield Mall of Scandinavia Netflix Squid Game in Westfield Century
Slide 17: Success in office letting: Trinity
Success in office letting: Trinity 7 63 559 € Per sqm, weighted % leased Deals signed in 2021 average face rent (30,103 sqm) office GLA(1) 3,500 sqm of green urban spaces, with 60 trees planted HQE Exceptional and BREEAM Excellent Operable windows offering natural ventilation Built with low carbon c
Slide 18: FY-2021 Financial Review
FY-2021 FINANCIAL REVIEW FABRICE MOUCHEL CFO Jazz concert in Westfield Chodov
Slide 19: FY-2021 Results
FY-2021 Results € Mn FY-2021 FY-2020 Change Lfl Change Shopping Centres 1,632 1,699 -3.9% -1.2%(1) Offices & Others 60 86 -29.7% -6.6% Convention & Exhibition 32 6 n.m. n.m. Net Rental Income 1,724 1,790 -3.7% -1.6%(2) Recurring Net Result (Group share) 1,005 1,057 -4.9% Recurring EPS 7.26 7.63 -4.9
Slide 20: FY-2021 AREPS down -5.2%, impacted by disposals
FY-2021 AREPS down -5.2%, impacted by disposals +4.7% rebased +€0.15 +€0.28 +€0.02 -€0.03 -€0.68 -€0.11 €7.28 €6.77 €6.91 €6.91 €6.60 (1) AREPS Disposals AREPS 2020 Financial Retail deliveries Operating Convention & Others AREPS 2020 restated for expenses performance Exhibition 2021 disposals Retail
Slide 21: Stable like-for-like retail NRI
Stable like-for-like retail NRI(1) Net closures, renewals, relettings and COVID-19 Total Lfl excl. Total Lfl indexation rent relief SBR Other Total Lfl straightlining(2) 2020(3) Continental Europe -4.0% -0.3% 0.0% -3.2% -7.5% -4.3% -19.1% United Kingdom -21.4% +14.4% +5.6% +27.8% +26.4% +27.0% -49.3
Slide 22: Improving rent collection as centres reopened
Improving rent collection as centres reopened As at February 3, 2022 As at December 31, 2021 Continental Collected Europe UK US Fully provisioned 10% Q1 (1) 83% 80% 80% 91%(2) 4% 0% Q2 (1) 85% 80% 94% 93%(2) Q3 (1) 93% 94% 93% 93%(2) 100% 86% 86% 86% Q4 (1) 90% 91% 93% 87%(2) FY (1) 88% 86% 90% 91%(
Slide 23: Lower bankruptcies in 2021
Lower bankruptcies in 2021 Bankruptcies down -57% vs. FY-2020 Sector split of bankruptcies: Cont. Europe UK US URW 18% # of stores 204 19 58 281 35% 2.8% 2.8% 1.5% 2.4% 5% % of total units In place 122 11 27 160 8% Replaced 53 0 15 68 11% In place 86% 58% 72% 81% 23% / replaced Vacant 29 8 16 53 Foo
Slide 24: Vacancy levels decreased in H2-2021
Vacancy levels decreased in H2-2021 14.0% 13.1% 12.2% 11.0% 10.6% 9.7% 9.1% 8.9% 8.3% 7.7% 7.0% 5.4% 4.9% 5.0% 4.0% 2.5% Continental UK US Group Europe FY-2019 vacancy FY-2020 vacancy H1-2021 vacancy FY-2021 vacancy 2021 FULL YEAR RESULTS 24
Slide 25: Letting activity back at 2019 levels
Letting activity back at 2019 levels 2,399 leases signed +2% vs. FY-2019 +60% vs. FY-2020 2500 2500 2500 2,359 2,399 2400 2300 2000 2200 Long-term 2000 2100 2000 1900 1800 RENEWALS 1,442 1,437 1700 1,503 1500 1500 1600 Short-term 1500 1400 1300 971 962 1200 1000 1000 917 1100 1000 900 800 Long-term
Slide 26: Positive uplift on long-term deals and decreasing proportion of short-term deals
Positive uplift on long-term deals and decreasing proportion of short-term deals Continental Europe(1) UK US Group 12-36 >36 12-36 >36 12-36 >36 12-36 >36 Total Total Total Total months months months months months months months months MGR Uplift -7.4% +4.6% -0.5% -26.2% -3.7% -7.6% -17.8% +1.0% -11.
Slide 27: Increase in SBR partly compensates loss in MGR in the US
Increase in SBR partly compensates loss in MGR in the US In € Mn Annualised 50.1 Renewals, relettings › Significant increase in SBR in 21.8 -22.1 Renewals, relettings signed in 2021(1) 2021 on the back of improving signed in 2021(1) 13.0 retailer performance › Almost equivalent total 18.8 revenues w
Slide 28: Offices & Others: NRI impacted by disposals
Offices & Others: NRI impacted by disposals Net Rental Income (€ Mn) FY-2021 FY-2020 Change Lfl Change France 35 56 -37.7% 2.4% Others 25 30 -14.6% -15.3% Total 60 86 -29.7% -6.6% 2021 FULL YEAR RESULTS 28 Trinity, La Défense
Slide 29: Convention & Exhibition: strong recovery of activity in H2
Convention & Exhibition: strong recovery of activity in H2 Recovery H2-2021 - 2022 Back to “normal” H1-2023 KCorp Experience, Palais des Congrès de Paris Paris Olympics From H2-2023 Strong interest from organisers for 2021-2022 278 401 81% events in H2-2021 pre-bookings 2022(1) number of events vs.
Slide 30: Convention & Exhibition: positive results upon reopening
Convention & Exhibition: positive results upon reopening Change N € Mn FY-2021 H1-2021 FY-2020 FY-2019 vs N-2 Net Rental Income 32 0 6 95 -66.9% Property Services & Other Income 24 -2 6 62 -61.6% Net Operating Income 55 -2 12 157 -64.8% NB: Figures may not add up due to rounding 2021 FULL YEAR RESUL
Slide 31: GMV evolution mainly driven by disposals and like-for-like revaluation
GMV evolution mainly driven by disposals and like-for-like revaluation €56,314 Mn +€1,187 Mn €54,473 Mn -€1,939 Mn +€1,063 Mn -€1,956 Mn -€196 Mn December 2020 Disposals Lfl revaluation Non Lfl revaluation & CAPEX / Currency Effect December 2021 revaluation of shares Acquisitions / Transfers 2021 FU
Slide 32: Shopping centre valuations bottoming out in H2 in Continental Europe
Shopping centre valuations bottoming out in H2 in Continental Europe Lfl revaluation since Dec 31, 2018(1) Continental Europe UK US (69% of GMV) (6% of GMV) (25% of GMV) URW -0.3% -1.3% -1.7% -1.6% -2.7% -2.0% -2.5% -1.9% -2.0% -5.2% -5.5% -4.4% -9.1% -8.5% -9.1% -8.2% -11.3% -14.0% -12.6% -26.3% To
Slide 33: URW revenues hedged against inflation through indexation and SBR
URW revenues hedged against inflation through indexation and SBR Continental Europe: 69% of GMV(1) 4% All rents indexed SBR: 2.3% of 2021 NRI 3% UK: 6% of GMV(1) ~50% of the leases tied to retailer sales 2% through SBR clauses SBR: 5.5% of 2021 NRI 1% US: 25% of GMV(1) 0% ~90% of the leases tied to
Slide 34: Cap rates protected by high risk premiums
Cap rates protected by high risk premiums France UK US 5.8% 5.7% 5.3% 4.3% 4.4% 4.6% 4.2% 4.3% 4.5% +460 bps +280 bps +440 bps 0.7% 1.4% 0.0% 2007 08 09 10 11 12 13 14 15 16 17 18 19 20 21 08 09 10 11 12 13 14 15 16 17 18 19 20 21 2007 17 08 09 10 11 12 13 14 15 16 18 19 20 21 URW NIY / WFD Estimate
Slide 35: 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 2026 Pro-forma(1) €25 Bn proportionate Net Financial Debt €23.9 Bn €20 Bn €15 Bn €10 Bn €5 Bn €0 Bn 2022 2023 2024 2025 2026 Debt kept at fixed rate Macro hedges (swaps & caps) Optional (1) Pro-fo
Slide 36: Marginal sensitivity to interest rates evolution
Marginal sensitivity to interest rates evolution Impact of increase in rates(1) on 2022 recurring financial expenses +€0.3 Mn +€21.4 Mn 75 bps 100 bps -€21.4 Mn -€32.1 Mn -€32.7 Mn -€0.3 Mn -€1.2 Mn -€2.5 Mn Interest rates: -25 bps +25 bps +100 bps +200 bps EUR US (1) The theoretical impact of a ris
Slide 37: EPRA NRV evolution
EPRA NRV evolution EPRA Net Reinstatement Value(1) (in € per share) €166.80 +€7.26 €159.60 -€1.05 -€0.20 -€12.69 -€0.52 December 2020 Lfl Asset Revaluation Non Lfl Asset Recurring Results Goodwill impairment Other(3) December 2021 Revaluation & Intangible Assets(2) (1) Hybrid securities are excluded
Slide 38: LTV improving on net debt reduction
LTV 25.0 improving on net debt reduction 50% €24.2 €24.2 2020 €24.2 Bn(3) 24.0 44.7% Disposals & 45% -€2.3 Bn foreclosures 43.3% 42.5% 23.0 Recurring Earnings -€1.0 Bn €22.6 38.6% 40% €22.1 Working capital -€0.2 Bn 22.0 FX +€0.4 Bn 21.0 35% (1) 2019 2020 2021 2021 pro-forma CAPEX +€1.1 Bn Net Financ
Slide 39: Improving credit ratios still reflect major impact of COVID-19
Improving credit ratios still reflect major impact of COVID-19 Interest cover ratio FFO / NFD Net debt to EBITDA(2) 6.7 16.6 9.7% 14.6 6.1 9.3% 5.9 8.7% 5.7 8.1% 13.7 8.8% 4.6 7.8% 10.5 8.5 9.9 3.5 3.3 5.0% 3.5 4.8% 8.5 4.3% 4.0% 2.9 2.0 (waivers obtained(1)) Typical covenant level (1) A waiver of t
Slide 40: Favourable credit market access and strong liquidity position
Favourable credit market access and strong liquidity position Debt Credit Active debt raised facilities buy back 8.6 year average debt maturity(3) Senior bonds Sustainability linked Senior Bonds €1,250 Mn 9.6 year €3,100 Mn 5 year €699 Mn 0.4 year €2.3 Bn average maturity average maturity residual m
Slide 41: Deleveraging plan on track
Deleveraging plan on track Objectives Complete €4.0 Bn Controlled CAPEX Radically reduce financial deployment with European disposal exposure focused development programme to US in 2022/2023 pipeline and reduced (2021/2022) cost base Suspend dividend payment for fiscal years 2020, 2021 FY-2021 progr
Slide 42: European disposal programme well advanced
European disposal programme well advanced Retail – 44% of disposals Offices – 56% of disposals +1.6% vs. +12.3% vs. €1.1 Bn(1) 4.8% NIY €1.4 Bn(1)(2) 3.9% NIY last appraisal last appraisal JV partnerships 100% sale 100% sale with long-term institutional partners, of assets not core to the Group’s of
Slide 43: US regional portfolio streamlining
US regional portfolio streamlining €0.5 Bn of disposals and foreclosures with associated debt exiting the portfolio Debt reduction: €0.4 Bn Capital gain: €44 Mn Ownership transfer of Citrus Park, Countryside, Broward, Sarasota and Palm Desert Asset quality of foreclosed assets below average portfoli
Slide 44: Development pipeline reduction through deliveries and Triangle partnership
Development pipeline reduction through deliveries and Triangle partnership €4.4 Bn -€0.9 Bn +€0.2 Bn €3.2 Bn -€0.5 Bn €0.9 Bn €1.9 Bn -€1.4 Bn €0.8 Bn €2.4 Bn €1.1 Bn FY-2020 Deliveries Triangle Partnership Project changes FY-2021 Invested to date Remaining to be spent Committed(1) Controlled(1) (1)
Slide 45: Focus on two main mixed-used projects
Focus on two main mixed-used projects Residential GLA(1) Residential GLA(2) 3,967 sqm 42,950 sqm Offices GLA Pre-letting(3) Offices GLA Pre-letting(3) 13,101 sqm 100% 48,326 sqm 0% Retail GLA Pre-letting(3) Retail GLA Pre-letting(3) 29,287 sqm 80% 95,401 sqm 47% Hotel GLA Management Hotels GLA Pre-l
Slide 46: Partnership with AXA IM Alts to launch the Triangle project
Partnership with AXA IM Alts to launch the Triangle project Attractive Outstanding Optimised returns project JV set-up for URW Excellent Exceptional 1,000 sqm of PV panels, supply the equivalent of lighting for 25,000 sqm of workspace Annual carbon emissions >50% lower Attractive IRR 30% remaining R
Slide 47: Conclusion
CONCLUSION JEAN-MARIE TRITANT CEO Job Fair at Westfield Forum des Halles
Slide 48: Capitalising on continued growth in 2022 and beyond
Capitalising on continued growth in 2022 and beyond URW will continue to build on improving market conditions and demonstrated recovery in tenant sales and footfall URW Investor Day March 30, 2022 10:30 am CET Operational improvement will drive strong leasing performance and lower vacancy in 2022 Th
Slide 49: Appendix
APPENDIX Westfield Euralille
Slide 50: Upcoming debt refinancing
Upcoming debt refinancing 16.4 16.4 In € Bn 5.0 3.1 1.5 1.7 1.2 1.3 0.8 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, 2021. On an IFRS basis. Excluding from chart: €1,250
Slide 51: Cost of debt and average debt maturity over time
Cost of debt and average debt maturity over time Average Cost of Debt Average Maturity (years) 3.9% 3.6% 8.4 8.6 3.4% 8.2 EUR (1) USD & GBP 1.5% 3.9% 7.2 7.5 2.9% 7.0 2.6% 6.5 2.2% 5.9 5.4 2.0% 4.9 1.7% 4.5 1.6% 4.3 1.6% 1.4% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2010 2011 2012
Slide 52: URW.COM
y UNIBAIL-RODAMCO-WESTFIELD URW.COM
Unibail-Rodamco-Westfield — FY2021 Earnings Presentation on 6ix