Unibail-Rodamco-Westfield SE · EURONEXT:URW
Unibail-Rodamco-Westfield — FY2020 Earnings Presentation
49 slides from Unibail-Rodamco-Westfield's earnings presentation, Feb 10, 2021
Slide 1: Full-Year Results
FULL-YEAR RESULTS UNIBAIL-RODAMCO-WESTFIELD
Slide 2: FY-20 Overview
FY-20 OVERVIEW JEAN-MARIE TRITANT CEO
Slide 3: Resilience and readiness
Resilience and readiness URW’s organisation has demonstrated resilience in extreme operating conditions with positive consumer demand whenever restrictions eased or lifted during 2020 Flagship destinations continue to attract leading brands and emerging players – working together to innovate in a ra
Slide 4: Tough conditions with positive recovery when restrictions eased
Tough conditions with positive recovery when restrictions eased Total URW footfall and sales excluding F&B and Entertainment Pre COVID-19 First wave Recovery in Europe Second / Third wave 120% 100% 80% 60% 40% 20% 0% January February March April May June July August September October November Decemb
Slide 5: Tough conditions with positive recovery when restrictions eased
Tough conditions with positive recovery when restrictions eased Tough conditions Strong rebound Working with tenants Strong start to 2020 but only 70 days of Footfall recovery, normal operations, and outperformed by sales Partnership approach to 93 days on average support tenants and “closed”. URW w
Slide 6: Innovative solutions for tenants and consumers
Innovative solutions for tenants and consumers We ensured a safe and convenient drive-to-store … and explored innovative solutions to experience for customers visiting our centres… extend reach of independent retailers Acceleration of technology driven initiatives to Industry leading certified healt
Slide 7: Consumers seek experiences – even at a social distance
Consumers seek experiences – even at a social distance Westfield Mission Valley Westfield Arkadia Wroclavia Westfield London Westfield Century City Continuing to invest in the Westfield brand and experience 2020 FULL-YEAR RESULTS 7
Slide 8: Partnering with tenants to deliver innovative new experiences
Partnering with tenants to deliver innovative new experiences URW and their Westfield Century City destination was the perfect platform for the global launch of our premium outdoor fitness experience Equinox+ In The Wild as well as a SoulCycle outdoor studio in 2020 – both concepts being an unpreced
Slide 9: Reinforcing trusted partnerships with leading brands
Reinforcing trusted partnerships with leading brands 1,528 new leases signed (-36% vs. 2019) 10 Deals 14 Deals 8 Deals 5 Deals H1-2020 -44% H2-2020 -29% 8 Deals 12 Deals 4 Deals 7 Deals (vs. 2019) Retailers investing in premium locations ahead of market rebound NB: long-term relettings and renewals
Slide 10: Emerging retail players choosing URW locations as mix evolves
Emerging retail players choosing URW locations as mix evolves Main 2020 signings & partnerships INNOVATIVE AUTO DIGITALLY-NATIVE VERTICAL BRANDS LEISURE Emerging players seeking Flagship locations to build brand awareness and drive customer acquisition 2020 FULL-YEAR RESULTS 10
Slide 11: Retail and mixed-use phased new development with solid pre-letting
Retail and mixed-use phased new development with solid pre-letting Retail Mixed-use Letting(1) Letting(1) Pre-letting(1) Pre-letting(1) 83% 93%(2) 90%(3) 84% & 100%(4) GLA GLA GLA GLA GLA +46,700 sqm +32,900 sqm +87,100 sqm 33,700 sqm 64,500 sqm Delivered Delivered Delivery Delivery Delivery Mar 202
Slide 12: Partnership approach to support tenants
Partnership approach to support tenants Flexible payment terms as an initial response Rent discounts granted as at December 31 at 100%: €401 Mn Negotiations based on fair “sharing burden” principle Average relief granted: More support for smaller and most impacted tenants 1.6 months in Europe and 2.
Slide 13: Targeted ESG strategy with focus on community
Targeted ESG strategy with focus on community 2020 ESG awards 94/100 More than 3.5 MW During COVID-19 pandemic, Framework on diversity of new solar installations 245 initiatives group-wide: & inclusion launched in the US in 2020 • Installation of 20 testing • Roll-out of ‘Unexamined Group climate ta
Slide 14: Trinity showcases URW's Better Places ambition
Trinity showcases URW’s Better Places ambition Sustainability certifications GLA Built with low 49,500 sqm carbon concrete (-30% emissions) Delivered Nov 2020 EXCEPTIONAL Operable windows offering natural URW ownership ventilation 100% Terraces and loggias on every floor, comprising of Letting In pr
Slide 15: Clear operational and financial focus
Clear operational and financial focus Operational Financial CONCENTRATION DIFFERENTIATION INNOVATION DELEVERAGING Focus on Continue to Accelerate Complete €4 Bn European disposal Flagship invest in adoption of data programme destinations in Westfield brand and digital (2021/2022) best catchment to a
Slide 16: Re-emerging as the most attractive retail focused listed real estate company
Re-emerging as the most attractive retail focused listed real estate company Most attractive fundamentals Outstanding growth potential OPERATIONAL Unrivalled Flagship destinations in best catchment Commercial tension driving reversionary potential areas Strong retailer base combining leading establi
Slide 17: Right team in place to deliver on vision
Right team in place to deliver on vision Comprehensive Management Board Jean-Marie TRITANT Fabrice MOUCHEL Astrid PANOSYAN Olivier BOSSARD Michel DESSOLAIN Chief Executive Officer Chief Financial Officer Chief Resources Officer Chief Investment Officer Acting Chief Customer Officer(1) Expanded team
Slide 18: FY-20 Financial Review
FY-20 FINANCIAL REVIEW FABRICE MOUCHEL CFO
Slide 19: FY-2020 Results
FY-2020 Results € Mn FY-2020 FY-2019 Change Lfl Change Shopping Centres 1,699 2,293 -25.9% -24.0% Offices & Others 85 103 -16.9% +0.1% Convention & Exhibition 6 95 -93.6% -93.6% Net Rental Income 1,790 2,491 -28.1% -26.4% Recurring Net Result (Group share) 1,057 1,760 -40.0% Recurring EPS 7.63 12.72
Slide 20: Impact of pandemic on FY-2020 AREPS
Impact of pandemic on FY-2020 AREPS -€1.78 -€1.05 -€0.68 -€0.53 -€0.27 +€0.39 -€0.26 -€0.49 -€0.42 €12.37 COVID-19: -€4.57 €6.89 €7.28 (2) (3) AREPS P&L impact Doubtful Variable Convention & Financial Services Disposals Letting fees Others AREPS FY-2019 COVID-19 debtors income Exhibition (1) expense
Slide 21: Like-for-like retail NRI evolution impacted by rent relief and doubtful debtors
Like-for-like retail NRI evolution impacted by rent relief and doubtful debtors Net closures, renewals, COVID-19 rent Indexation relettings & others relief Doubtful debtors Total Lfl Continental Europe 1.3% -5.3% -11.6% -3.5% -19.1% United Kingdom 0.0% -24.9% -16.2% -8.3% -49.3% United States 0.0% -
Slide 22: COVID-19 rent relief: cash and accounting impact
COVID-19 rent relief: cash and accounting impact Rent relief(1) granted to URW retailers as at December 31: • Cash impact: €313 Mn vs. €54 Mn as at September 30 • P&L impact: €246 Mn vs. €32 Mn as at September 30 Most agreements executed in Q4 - in line with expectations Impact of second wave for 20
Slide 23: FY-2020 rent collection at 80% with rate increasing when centres opened
FY-2020 rent collection at 80%(1) with rate increasing when centres opened Continental Collected Europe UK US FY collection rates Q1 96% 97% 98% 93% 10% 7% 3% Q2 61% 67% 66% 48% Q3 85% 95% 78% 70% 100% Q4 76% 81% 74% 68% 83% 80% FY 80% 85% 79% 70% of due:(2) 88% 94% 84% 79% (1) Rent collection rate
Slide 24: Bankruptcies reflect impact of COVID-19
Bankruptcies reflect impact of COVID-19 Sector split of bankruptcies: Cont. Europe UK US URW # of stores 322 62 268 652 13% % of total units 4.2% 7.9% 6.5% 5.2% 4% In place 188 42 172 402 7% 53% Replaced 52 0 12 64 7% In place 75% 68% 68% 71% / replaced 16% Vacant 82 20 84 186 Fashion Apparel Food &
Slide 25: Vacancies stabilising between Q3 and Q4
Vacancies stabilising between Q3 and Q4 13.1% 11.2% 9.7% 9.4% 9.1% 8.3% 7.7% 7.7% 5.4% 4.7% 4.9% 2.5% Continental UK US Group Europe FY-2019 Vacancy Q3-2020 Vacancy FY-2020 Vacancy 2020 FULL-YEAR RESULTS 25
Slide 26: Leasing activity picked up in H2
Leasing activity picked up in H2 Number of deals(1): 1,528 (-36% vs 2019) 2020 leasing activity impacted by 484 COVID-19 tenant negotiations (-22%) 428 (-23%) 383 (-36%) 206 Cont. 231 233 201 Europe UK US URW (-63%) MGR uplift +1.7% +0.4% -20.3% -5.1% (in %) 130 278 197 182 MGR signed €134 €18 €66 €
Slide 27: Offices & Others: results reflect disposals
Offices & Others: results reflect disposals Net Rental Income (€ Mn) FY-2020 FY-2019 Growth Lfl Growth France 56 72 -22.3% +0.7% Nordics 10 10 +2.0% +1.0% Others 8 7 +8.3% +6.7% US 11 13 -16.1% -8.0% Total 85 103 -16.9% +0.1% Les Villages de l’Arche 2020 FULL-YEAR RESULTS 27
Slide 28: Convention & Exhibition: a grim year
Convention & Exhibition: a grim year Restart activity Q4-2021 / Q1-2022 Change € Mn FY-2020 FY-2019 2020/2019 Back to “normal” 2023 Net Rental 6 95 -93.6% Income Paris Olympics From H2-2023 Property Services 6 62 -90.2% & Other Income Strong interest from organisers for 2021-22 Recurring Net Operati
Slide 29: Lfl revaluation: -13.1% since 2018, of which -11.3% in 2020
Lfl revaluation: -13.1% since 2018, of which -11.3% in 2020 Lfl revaluation since FY-2018(1) FY-2020: -11.3% o/w H1-2020: -5.1%(2) 5% Revaluation 2019 Revaluation 2020 Total Revaluation -5% -15% -25% -35% Continental Europe United Kingdom United States URW (68% of GMV) (6% of GMV) (25% of GMV) Disco
Slide 30: EPRA NRV evolution
EPRA NRV evolution EPRA Net Reinstatement Value(1) (in € per share) €228.80 +€4.55 -€35.70 +€7.63 -€10.90 €166.80 -€8.25 -€5.40 -€9.38 December 2019 Lfl Asset Goodwill Non Lfl Asset Dividend Recurring Results Other December 2020 Revaluation Impairment Revaluation & Intangible Assets (1) Hybrid secur
Slide 31: Ample LTV covenant headroom
Ample LTV covenant headroom IFRS Loan-to-value(1) 60% 42% 44.7% 41% 38% 44.0%(2) 37% 37% 35% 33% 32% 33% 25% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Typical covenant level Proportionate LTV(1): 46.3% or 45.6% pro-forma(2) (vs. 40.5% as
Slide 32: Credit ratios reflect COVID-19 impact on EBITDA
Credit ratios reflect COVID-19 impact on EBITDA Interest cover ratio Net debt to EBITDA 14.6 6.7 6.1 5.9 5.7 10.5 4.6 9.9 8.5 4.1 3.8 3.5 8.5 3.5 7.7 5.8 2.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Typical cove
Slide 33: Comprehensive and clear deleveraging strategy
Comprehensive and clear deleveraging strategy Implement programme Controlled CAPEX Complete €4 Bn Suspend dividend to significantly reduce deployment with European disposal payment for fiscal financial exposure to focused development programme years 2020, 2021 and US pipeline and reduced (2021/2022)
Slide 34: Dividend
Dividend Uncertain operating Once deleveraged and Due to negative statutory environment and strategic repositioned, URW will results, no SIIC dividend focus on deleveraging: resume a dividend policy distribution obligation is suspension of dividend based on a significant pay anticipated for those ye
Slide 35: €2.3 Bn in disposals signed in 2020
€2.3 Bn in disposals signed in 2020 10 Assets: NIY: 4.6% Premium(1): +0.3% 5 European retail assets 2 European offices 3 US retail assets Aéroville So Ouest Confluence Rennes Alma Toison d’Or Westfield Meriden Westfield Siesta Key Westfield Sunrise SHiFT Les Villages 3, 4 & 6 (1) Compared to FY-2019
Slide 36: Development pipeline reduced with built-in flexibility
Development pipeline reduced with built-in flexibility €8.3 Bn -€1.3 Bn €4.4 Bn -€2.6 Bn €1.5 Bn €2.5 Bn -€1.9 Bn €1.4 Bn €2.9 Bn €1.2 Bn FY-2019 Deliveries Removed Removed projects, projects, net of FY-2020 Invested to date Remaining net of new projects new projects and and reporting reporting chan
Slide 37: Positive impact on IFRS LTV under varied US disposal conditions
Positive impact on IFRS LTV under varied US disposal conditions Discount to December 31, 2020, valuations for US disposal: -0% -10% -20% -30% -40% -50% 44.7% 43.2% 38.8% 37.0% 34.0% 30.9% 27.8% 24.8% 21.7% FY-2020 Pro-forma: Pro-forma: Indicative pro-forma LTV with disposal of 100% of US portfolio(2
Slide 38: Good credit market access with opportunistic fund raising in 2020
Good credit market access with opportunistic fund raising in 2020 Euro Senior Bonds April June November Avg coupon: €600 Mn €750 Mn €1 Bn 1.66% 5-years 12-years Long 6-years 2.125% 2.0% 0.625% €800 Mn €1 Bn Avg maturity: 10-years 11-years 9.0 years 2.625% 1.375% 2020 FULL-YEAR RESULTS 38
Slide 39: Ample liquidity to cover next 24-months
Ample liquidity to cover next 24-months Sources and uses(1) (in € Bn) 1 Illustrative retained 2.0 earnings(2) Debt 4.8 maturities €4.7 Bn Credit lines(3) 3.2 Planned further 3.2 EU disposals Secured disposals(4) 0.8 CAPEX 2.0 Cash position 2.3 1.5 1.5 Sources Uses Net sources - uses Total liquidity
Slide 40: Conclusion
CONCLUSION JEAN-MARIE TRITANT CEO
Slide 41: Realistic expectations for 2021 with strong focus on execution
Realistic expectations for 2021 with strong focus on execution GDP Forecast Change YoY (Goldman Sachs Global Investment Research)(1) First Conditions will remain challenging with 52% of portfolio quarters currently closed today 30% Restrictions in most markets expected to continue into 20% 2021 at l
Slide 42: Emerging as the most attractive retail focused listed real estate company
Emerging as the most attractive retail focused listed real estate company Restore attractive Capitalize on economic Deliver sustainable growth fundamentals recovery as total return play Operational focus on Flagship Best placed to benefit from Financial performance destinations and consumption drive
Slide 43: Appendix
1 a il an me Zz 3 _ WHEE —— oo ! |Z — PSRs SeWed ‘APPENDIX & Hie eo “| sensei | 5 - Mh? y ay ii Wadia 7 eigidens eit lee ebity lan i* al An
Slide 44: 2021 restrictions
2021 restrictions Czech Republic Austria Denmark France National lockdown F&B and entertainment National lockdown Non-essential shops in large Non-essential shops closed closed Non-essential shops closed shopping centers (>20,000 sqm) closed 48% Germany The Netherlands Poland Sweden Shopping Nationa
Slide 45: URW supported its local communities
URW supported its local communities 88 food distributions were organized 11 assets engaged to support non- by the Group’s assets for first profit and authorities fighting responders, homeless people, domestic violence, opening disadvantaged families or isolated dedicated spaces or raising elderly pe
Slide 46: Upcoming debt refinancing
Upcoming debt refinancing 15.8 2.5 3.0 1.9 1.4 1.7 0-1 Y 1-2 Y 2-3 Y 3-4 Y 4-5 Y >5Y Gross Financial Debt (in € Bn) The average residual maturity of undrawn credit lines stands at 1.9 years Nb: URW’s debt profile as at December 31, 2020. On an IFRS basis. Excluding from chart: €1,250 Mn Hybrid NC 20
Slide 47: Low cost of debt and record average maturity
Low cost of debt and record average maturity Average Cost of Debt Average Maturity (years) 3.9% 8.4 8.2 3.6% 3.4% 7.5 EUR (1) USD & GBP 7.2 1.1% 3.6% 7.0 2.9% 6.5 2.6% 5.9 2.2% 5.4 4.9 4.5 4.3 1.6% 1.6% 1.7% 1.4% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 2012 2013 2014 2015 20
Slide 48: Bond spreads have come down as a result of central bank actions
Bond spreads have come down as a result of central bank actions in bps 400 350 300 250 200 150 100 50 0 11/03/2020 11/04/2020 11/05/2020 11/06/2020 11/07/2020 11/08/2020 11/09/2020 11/10/2020 11/11/2020 11/12/2020 11/01/2021 ULFP CDS EUR SR 5Y D14 Corp - Last Price ULFP 1 ⅜ 03/09/2026 REGS Corp - Bl
Slide 49: URW.COM
y UNIBAIL-RODAMCO-WESTFIELD URW.COM
Unibail-Rodamco-Westfield — FY2020 Earnings Presentation on 6ix