Carmila Sa · EURONEXT:CARM

Carmila Sa — H1 2022 Earnings Presentation

32 slides from Carmila Sa's earnings presentation, 2022

  1. Slide 1: Carmila H1 2022 Results Presentation

    Carmila H1 2022 Results Presentation 1

  2. Slide 2: Agenda: Key Highlights, Activity Overview, Financial Performance, Conclusion

    1 Key Highlights MARIE CHEVAL Chair and Chief Executive Officer SEBASTIEN VANHOOVE 2 Activity Overview Deputy Chief Executive Officer SEBASTIAN PALACIOS VILCHEZ Director of Carmila Spain and Italy 3 Financial Performance PIERRE-YVES THIRION Chief Financial Officer 4 Conclusion MARIE CHEVAL Chair and

  3. Slide 3: Key takeaways from H1 2022

    1 Key highlights 2 3 4 Key takeaways from H1 2022 Q2 retailer sales above 2019 level: 105% of Q2 2019 level in Q2 2022, 100% of H1 2019 level in H1 2022, as Q1 still impacted by COVID restrictions Strong leasing momentum: Good momentum in H1 2022 (517 leases signed, +17% in annual rent vs. H1 2019,

  4. Slide 4: Recent events and outlook

    1 Key highlights 2 3 4 Recent events and outlook Execution of the asset rotation strategy: Sale of € 150M portfolio of 6 assets in France, in line with appraisal values, through a joint venture with Batipart and ATLAND Voisin Acquisition of Rosaleda shopping center in Malaga, Spain, for € 24.3M Shar

  5. Slide 5: Post-COVID normalisation of the outlook for e-commerce growth

    1 Key highlights 2 3 4 Post-COVID normalisation of the outlook for e-commerce growth E-commerce sales Structurally lower e- commerce penetration in France, Spain and Italy Economically and environmentally, home delivery is less cost- effective outside of large urban areas Source : CBRE (June 2022) N

  6. Slide 6: Explaining the strong performance of Carmila shopping centres

    1 Key highlights 2 3 4 Explaining the strong performance of Carmila shopping centres • The right assets for their catchment areas Local leaders in • z are local leaders or co/leaders 90% of sites mid sized cities • Positioned to benefit from renaissance of mid-sized cities • Gaining market share in

  7. Slide 7: Carmila is more focused than ever on energy efficiency & transition

    1 Key highlights 2 3 4 Carmila is more focused than ever on energy efficiency & transition Electric car charging stations Committed to lower carbon 100% of Carmila centres will have electric charging stations emissions in the car park by end-2023 Central management of Full range of power options up

  8. Slide 8: On track to deliver a successful first year with growth initiatives

    1 Key highlights 2 3 4 On track to deliver a successful first year with growth initiatives Omnichannel incubator € 2M Recurring earnings expected in 2022 Ca. € 2M Annualised rent secured by end 2022 Ca. € 2M Contribution to RETAIL EBITDA* in 2022 DEVELOPMENT *Carmila’s share of EBITDA of equity acco

  9. Slide 9: Agenda: Activity Overview

    1 Key Highlights MARIE CHEVAL Chair and Chief Executive Officer SEBASTIEN VANHOOVE 2 Activity Overview Deputy Chief Executive Officer SEBASTIAN PALACIOS VILCHEZ Director of Carmila Spain and Italy 3 Financial Performance PIERRE-YVES THIRION Chief Financial Officer 4 Conclusion MARIE CHEVAL Chair and

  10. Slide 10: Full recovery of retailer sales but still lower footfall

    1 2 Activity Overview 3 4 Full recovery of retailer sales but still lower footfall 104% 104% 104% 105% 98% 98% 98% 99% 96% 96% 94% 91% 95% 96% 93% 94% 93% 93% 91% 92% 91% 91% 88% 86% +7pts H1 2022 footfall vs. peers Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22

  11. Slide 11: Strong commercial momentum in H1 2022

    1 2 Activity Overview 3 4 Strong commercial momentum in H1 2022 Positive reversion Good level of new business signed in Positive reversion High level of H1 2022 occupancy 517 96.2% Long-term leases signed in H1 2022 +2.8% Financial occupancy rate above previous (+17% in annual rent vs. (+50 bps vs.

  12. Slide 12: The right mix of retailers with new leases across all major sectors

    1 2 Activity Overview 3 4 The right mix of retailers with new leases across all major sectors HEALTHCARE RESTAURANTS CLOTHING, SPORTSWEAR SERVICES, LEISURE, BEAUTY HOME, DISCOUNT, GIFTS 12

  13. Slide 13: New omnichannel tools, partnerships and shopping events

    1 2 Activity Overview 3 4 New omnichannel tools, partnerships and shopping events New tools to enhance Nationwide events 57 sales events in omnichannel in partnership H1, ~100 planned marketing with retailers and for 2022 Deezer Summer 2022 Measuring the number of visits Deezer partnership generated

  14. Slide 14: Adapting the pipeline to a changing economic environment

    1 2 Activity Overview 3 4 Adapting the pipeline to a changing economic environment 5 MAJOR EXTENSION PLANS Montesson Sartrouville €550M CAPEX • No building work currently underway Nantes Orléans • First project in pipeline to begin end-2023 at Beaujoire the earliest Toulouse Labège • Redesigning pro

  15. Slide 15: Transforming assets in France with various types of project

    1 2 Activity Overview 3 4 Transforming assets in France with various types of project RESTRUCTURING RESTAURANTS MID-SIZED STORES Laval Puget sur Argens (delivery in Normal in Vannes, Action in 2023) and 8 projects in 2022 Sannois and Toulouse Purpan • Transformation of centre and • New food courts,

  16. Slide 16: Focus on Carmila España: Overview of the portfolio

    1 2 Activity Overview 3 4 Focus on Carmila España: Overview of the portfolio National coverage, with strong presence in coastal areas 79 506 000 € 1418M Centres M² of GLA Gross asset value 23% of total GAV #1 in Spain by number of sites Financial occupancy: Net Initial Yield: 95.4% 6.9% Occupancy co

  17. Slide 17: Carmila España: Flagship assets, leading Carrefour hypermarkets

    1 2 Activity Overview 3 4 Carmila España: Flagship assets, leading Carrefour hypermarkets HOLEA FAN AS CANCELAS* GLA: 33,509 m² GLA: 50,262m² GLA: 38,141 m² Lots: 103 Lots: 121 Lots: 106 Local leader with 8 million visitors/year, Local leader with 7 million visitors/year Local leader with 7 million

  18. Slide 18: Value creating projects in Spain and Italy

    1 2 Activity Overview 3 4 Value creating projects in Spain and Italy Rosaleda (Malaga) Gran Sur Alicante May 2022 Acquisition € 24.3M Albacete Gran Via (Madrid) Paderno Objective: 7 major projects to be delivered in 2022, € 1.3M NRI uplift* 18 *Transformation projects only – not including Rosaleda a

  19. Slide 19: Agenda: Financial Performance

    1 Key Highlights MARIE CHEVAL Chair and Chief Executive Officer SEBASTIEN VANHOOVE 2 Activity Overview Deputy Chief Executive Officer SEBASTIAN PALACIOS VILCHEZ Director of Carmila Spain and Italy 3 Financial Performance PIERRE-YVES THIRION Chief Financial Officer 4 Conclusion MARIE CHEVAL Chair and

  20. Slide 20: Increase in the like-for-like valuation of assets

    1 2 3 Financial Performance 4 Increase in the like-for-like valuation of assets Valuation of portfolio as of 30 June 2022 Like-for-like change 30 Jun 2022 (vs 31 Dec. 2021) (vs 31 Dec. 2021) Market value €6,165m -0.8% +1.1% Total (reported) Total (like-for-like) -2.1% € 4,393m +1.3% € 1,418m +3.2% +

  21. Slide 21: Confidence in the valuation of the portfolio

    1 2 3 Financial Performance 4 Confidence in the valuation of the portfolio Net Potential Yield of portfolio as of 30 June 2022 Average cap rate on the portfolio ca. +450bps above the current 10-year swap 6.26% rate 6,20% 6,18% 6,26% Average capitalisation rate 5,70% 5,80% 5,90% 6.26% 6.20% 6.18% 1,7

  22. Slide 22: Complete recovery in net rental income after the health crisis

    1 2 3 Financial Performance 4 Complete recovery in net rental income after the health crisis Net Rental Income (€ M) Net rental income up +34.6% vs. H1 2021 • Organic rental growth +4.8%, of which indexation +3.0% • Change directly related to COVID effects (+29.9%): 167 148 172 Non-payment of rent d

  23. Slide 23: Recurring earnings +62% vs. H1 2021

    1 2 3 Financial Performance 4 Recurring earnings +62% vs. H1 2021 €m H1-2021 H1-2022 Net rental income +35% vs. H1 2021 Net rental income 127.9 172.2 Overhead costs -24.4 -23.9 Reduction in cost base vs. H1 2021 Equity-accounted companies 1.1 1.2 EBITDA 104.7 149.5 Net financial expense (cash items)

  24. Slide 24: Recurring Earnings Per Share: normalisation faster than expected

    1 2 3 Financial Performance 4 Recurring Earnings Per Share : normalisation faster than expected H1 2022 Recurring Earnings Per Share Recurring EPS +59% vs. H1 2021 at €0.83 Faster normalisation of rent collection than expected € 0.83 Positive indexation effect on rents Organic growth on top of index

  25. Slide 25: Increase in EPRA Net Tangible Assets per share

    1 2 3 Financial Performance 4 Increase in EPRA Net Tangible Assets per share EPRA NTA H1 2022 Change in EPRA Net Tangible Assets per share at 30 June 2022 – fully diluted +0.83 -1.00 € 24.82 / share +0.36 +0.15 -0.06 24.82 +1,2% vs. end 24.54 H1 2022 2021 2021 Share Other recurring Like for like div

  26. Slide 26: Strong Balance Sheet: LTV Ratio 36.9%

    1 2 3 Financial Performance 4 Strong Balance Sheet: LTV Ratio 36.9% +24 -126 2,323 -120 +144 +18 Rosaleda +30 +5 2,272 -26 CAPEX acquisition (maintenance Other Sale of Share H1 2022 and portfolio buyback restructuring Net debt (€M) FFO Change in Dividend projects) of assets working capital in France

  27. Slide 27: Strengthened liquidity position and funding structure

    1 2 3 Financial Performance 4 Strengthened liquidity position and funding structure Carmila Maturity Profile: End-June 2022 New term loan signed in July 2022: New € 550M sustainability linked term loan (5 year maturity, 2 year extension option), Bonds Term Loan E3M+180bps 270 RCF Commercial paper 17

  28. Slide 28: Successfully implementing the asset rotation strategy

    1 2 3 Financial Performance 4 Successfully implementing the asset rotation strategy ASSET ROTATION USE OF PROCEEDS OF DISPOSALS Portfolio of six assets May 2022 : Acquisition of Rosaleda Shopping centre in Buyer : Batipart and ATLAND Voisin Malaga (Spain) for €24.3 million* Location : France Price :

  29. Slide 29: Financial wrap-up

    1 2 3 Financial Performance 4 Financial wrap-up € 6.16bn 36.9% +59% Gross Asset Value* H1 2022 recurring EPS (+1.1% like-for-like LTV* growth vs. H1 2021 vs. end-2021) +20% Dividend policy recurring EPS growth Cash dividend, 75% expected in 2022 payout A strong start to the 2022-2026 financial plan

  30. Slide 30: Agenda: Conclusion

    1 Key Highlights MARIE CHEVAL Chair and Chief Executive Officer SEBASTIEN VANHOOVE 2 Activity Overview Deputy Chief Executive Officer SEBASTIAN PALACIOS VILCHEZ Director of Carmila Spain and Italy 3 Financial Performance PIERRE-YVES THIRION Chief Financial Officer 4 Conclusion MARIE CHEVAL Chair and

  31. Slide 31: A strong start to the 2022-26 plan: Building Sustainable Growth

    1 2 3 4 Conclusion A strong start to the 2022-26 plan: “Building Sustainable Growth” Confirmation of the quality of Carmila’s portfolio Sale of a portfolio of assets in line with appraisal values, Carrefour-anchor driving higher footfall than peers, local leaders with the right merchandising-mix Org

  32. Slide 32: Q&A session

    Q&A session 32

Carmila — H1 2022 Earnings Presentation on 6ix