Slide 1: Altarea, Leader in Low Carbon Urban Transformation: 2022 Annual Results
ALTAREA, LEADER IN LOW CARBON URBAN TRANSFORMATION 2022 ANNUALS RESULTS
Slide 2: Agenda
AGENDA ANNUAL RESULTS 2022 01 - INTRODUCTION 02 - ALTAREA, LEADER IN LOW CARBON URBAN TRANSFORMATION 2 03 - FINANCIAL AND ENVIRONMENTAL PERFORMANCE 04 - STRATEGY AND OUTLOOKS 05 - APPENDICES Flora Nanterre 2
Slide 3: Introduction
01 ANNUAL RESULTS 2022 INTRODUCTION 3 Campus of ENS Cachan
Slide 4: 2022 Results and New Strategic Roadmap
ANNUAL RESULTS 2022 2022 RESULTS AND NEW STRATEGIC ROADMAP Robust New strategic Adjusted 4 2022 results environment roadmap Excellent operational A new cycle A strategy of and financial for real estate organic growth performance interest rates, inflation, Operating income +10% decarbonisation Consid
Slide 5: Non-Completion of the Primonial Acquisition
ANNUAL RESULTS 2022 NON-COMPLETION OF THE PRIMONIAL ACQUISITION The initially projected acquisition of Primonial was a transformative operation for Altarea with prospects for recurring revenues and 5 attractive growth in the real estate savings business The 2025 FFO guidance from €18 to €20 per shar
Slide 6: Altarea, Leader in Low Carbon Urban Transformation
02 ALTAREA ANNUAL RESULTS 2022 LEADER IN LOW CARBON 6 URBAN 6 TRANSFORMATION Amytis Angers
Slide 7: Consolidated Pipeline
ANNUAL RESULTS 2022 ALTAREA, LEADER IN LOW CARBON URBAN TRANSFORMATION CONSOLIDATED PIPELINE (1) €21.3 bn potential value 7 900 projects 4.5 million of m² (1) This pipeline doesn’t include the Group’s backlog for an amount of more than €4.0 bn. Projects from left to right and from top to bottom: Cam
Slide 8: Major Urban Projects: New Districts for Changing Cities
ANNUAL RESULTS 2022 MAJOR URBAN PROJECTS: NEW DISTRICTS FOR CHANGING CITIES 21 projects 8 €5.1 bn (potential value) 15,800 residential units 2 deliveries Issy Cœur de Ville, Toulouse Aerospace 7 projects in progress (1 in Paris region / 6 in Regions) 8 new projects (6 in Paris region/ 2 in Regions)
Slide 9: Retail: A Strong Recovery
ANNUAL RESULTS 2022 RETAIL RETAIL: A STRONG RECOVERY A positive ▪ Tenant’s sales +20% vs 2021 dynamic +4% vs 2019 ▪ Increase of average shopping basket value 9 footfall : 91% of 2019 level Sustained demand ▪ 367 leases signed in 2022 (+13%) from retailers €33.5m in rents CAP3000 (Nice) ▪ Financial v
Slide 10: Retail: Rolling Out a Strategy of Asset Management
ANNUAL RESULTS 2022 RETAIL ROLLING OUT A STRATEGY OF ASSET MANAGEMENT Assets under management (AuM) 57% 43% in growth 10 +3.9% vs 2021 +1.5% at constant scope €5.5bn AuM €2.3bn Group share Gare Paris-Montparnasse (Paris) New contracts ▪ NICETOILE won 12 million visitors per year – 17,300 m² GLA - 10
Slide 11: Low Carbon Retail, a Differentiating Skill for Asset Management
ANNUAL RESULTS 2022 RETAIL LOW CARBON RETAIL, A DIFFERENTIATING SKILL FOR ASSET MANAGEMENT Trailblazing ▪ Decarbonisation trajectory initiated since 2010 initiatives carbon-neutral target by 2030 11 ▪ Low carbon strategy deployed across all assets Highest standards for ▪ Systematic on-boarding of te
Slide 12: Paris-Austerlitz Station, the New Lively Heart of the City
ANNUAL RESULTS 2022 PARIS-AUSTERLITZ STATION, THE NEW LIVELY HEART OF THE CITY A MEGA PROJECT, 20,000 m² in retail, 45 million users by 2030 Proximity, a specific 12 expertise of Altarea
Slide 13: Logistics: A Comprehensive Set-Up to Address a Dynamic Market
ANNUAL RESULTS 2022 BUSINESS PROPERTY LOGISTICS: A COMPREHENSIVE SET-UP TO ADDRESS A DYNAMIC MARKET Favorable market ▪ Higher demands, shortage of new constructions for asset creators supply chain reorganisation, administrative complexity 13 ▪ Extension of value chain to last mile logistics Logistic
Slide 14: Business Property: A Record Year of Activity
ANNUAL RESULTS 2022 BUSINESS PROPERTY BUSINESS PROPERTY: A RECORD YEAR OF ACTIVITY Mega deals ▪ Disposal of the 10% remaining stake in Bridge, in the Paris region global headquarters of Orange 56,000 m² in Issy-les-Moulineaux 14 ▪ Delivery of 3 office buildings to CNP Assurances 40,900 m² in Issy-le
Slide 15: Transformation of Existing Office Buildings, a Key Skill
ANNUAL RESULTS 2022 BUSINESS PROPERTY TRANSFORMATION OF EXISTING OFFICE BUILDINGS, A KEY SKILL A new era of ▪ New environmental standards asset transformation tertiary decree, taxonomy 15 ▪ A key challenge of value protection in a context of lower requirements on space ▪ Critical issues for assets o
Slide 16: Leader in Origination and Management of Mega Deals
ANNUAL RESULTS 2022 LEADER IN ORIGINATION AND MANAGEMENT OF MEGA DEALS ACQUISITION, DELIVERY, RESTRUCTURING OF THE CNP ASSURANCES HEADQUARTERS 2019(1)-2022: CNP relocates to Issy-les-Moulineaux 16 Future icon of the Paris-Montparnasse area (56,000 m²) CNP's historic headquarters in Paris-Montparnass
Slide 17: Residential: A Favorable Market for Most of the Year
ANNUAL RESULTS 2022 RESIDENTIAL RESIDENTIAL: A FAVORABLE MARKET FOR MOST OF THE YEAR Real estate, ▪ A residential market structurally under-supplied 17 a safe heaven large cities and new territories by excellence ▪ Interest rate still attractive below 1,5% until July (1) ▪ Real estate as best protec
Slide 18: Residential: Shift in Demand Towards Year-End
ANNUAL RESULTS 2022 RESIDENTIAL SHIFT IN DEMAND TOWARDS YEAR-END Desire of buyers ▪ Accelerated deterioration of economic context affected by inflation, geopolitical and macroeconomic tension economic context ▪ Reduced purchasing power for real estate 18 high price, rise in interest rates, usury rat
Slide 19: Low Carbon Housing, an Expertise of Altarea
ANNUAL RESULTS 2022 RESIDENTIAL LOW CARBON HOUSING, AN EXPERTISE OF ALTAREA A comprehensive ▪ New housing offering performance ≥ RE2020 threshold 2025 (average cost+ ~€100 / m²) 19 ▪ Rehabilitation of historic buildings ▪ Timber structure CLT (1) Persea delivered by Woodeum in 2022 (Noisy-le-Grand)
Slide 20: A 100% Altarea Brand (Woodeum)
ANNUAL RESULTS 2022 A 100% ALTAREA BRAND 2022, Altarea becomes the sole shareholder of the French leading brand in low carbon solid wood residential property 20 A potential of 1,500 to 2,000 units per year On the left: Mélia (Taverny), a residence of 94 flats delivered in 2022, meeting the requireme
Slide 21: Vertuo, a Low-Carbon Operation
ANNUAL RESULTS 2022 VERTUO, A LOW-CARBON OPERATION RE2020 THRESHOLD 2025, NF HABITAT HQE 7 77 residential units – Selling price : €4,915/m² excluding tax Product benefits 21 21 ▪ 64% of units have double or triple orientation ▪ 48% of units eligible Pinel+ ▪ NF Habitat HQE : excellent level ▪ Extern
Slide 22: Financial and Environmental Performance
03 ANNUAL RESULTS 2022 FINANCIAL AND ENVIRONMENTAL 22 PERFORMANCE 22 Issy Cœur de Ville Issy-les-Moulineaux
Slide 23: Financial Performance: Stable Revenue, Rising Operational Income
ANNUAL RESULTS 2022 FINANCIAL PERFORMANCE STABLE REVENUE RISING OPERATIONAL INCOME FFO GROWTH IN LINE WITH GUIDANCE 23 En M€ Retail Property dvpt Group (1) Revenue 241.5 2,771.6 3,013.2 -0.5% Operating income (2) 192.6 262.0 446.3 +10.2% Operating margin 79.8% 9.5% 14.8% Financial costs (60.4) Corpo
Slide 24: FFO Group Share: €275.4m (+4.2%)
ANNUAL RESULTS 2022 FINANCIAL PERFORMANCE FFO GROUP SHARE: €275.4m (+4.2%) In €m +13.3 +40.5 -27.2 +8.8 -21.7 +35.2 -24.6 275.4 264.4 3 200 M€ Partnerships Financial 24 Post Covid (1) result Other recovery (mainly Residential Business corporate tax) Retail property Retail: +€13.3m Improvement in bad
Slide 25: Taxonomy: Alignment Rate Reaching 44%
ANNUAL RESULTS 2022 EUROPEAN TAXONOMY TAXONOMY: ALIGNMENT RATE REACHING 44% Taxonomy, ▪ A universal European standard new standard for easy benchmark between companies in the same sector environmental ▪ Consolidated financial statement indicators based 25 performance reporting ▪ 6 cumulative criteri
Slide 26: Carbon Performance: Lower Emissions and Carbon Intensity
ANNUAL RESULTS 2022 CARBON PERFORMANCE CARBON PERFORMANCE LOWER EMISSIONS AND CARBON INTENSITY -30.6% Thousand of tons of CO2 equivalent Methodology in group share 26 1,563 Property development: calculate carbon performance at the percentage of completion Same principles and data used for accounting
Slide 27: A Strong Financial Structure
ANNUAL RESULTS 2022 FINANCIAL PERFORMANCE A STRONG FINANCIAL STRUCTURE FINANCE Equity at fair value (1) €157.1 /share (-0.3%) 27 €3,200m €1,584m Minority equity at fair value +€277m in 2022 (mainly from partnerships) €1,555m Net debt (bonds and bank loans) -€91m vs 2021 Other o/w IFRS 16 debt 31/12/
Slide 28: Reduction in Net Debt
ANNUAL RESULTS 2022 FINANCIAL PERFORMANCE REDUCTION IN NET DEBT (1) DEBT RATIOS PARTICULARLY SOLID In €m 1,646 (330) +30 1,555 -€91m 28 +93 vs 2021 +158 Other (3) Financial (275) investments(2) +43 Partnerships +191 & disposals WCR CAPEX Property development FFO Dividend • Net debt / EBITDA: 3.5x (-
Slide 29: Liquidity Optimisation and Dynamic Management of Interest Rate Hedges
ANNUAL RESULTS 2022 FINANCIAL PERFORMANCE LIQUIDITY OPTIMISATION & DYNAMIC MANAGEMENT OF INTEREST RATE HEDGES Optimisation of ▪ Reduction of gross debt available cash partial buy-back of senior bonds for €342.3m 29 decrease of outstanding NCP (1) down to €372m ▪ Optimisation of internal cash pool Im
Slide 30: Strategy & Outlooks
04 ANNUAL RESULTS 2022 STRATEGY & OUTLOOKS 30 Cité de la Gastronomie Paris Rungis
Slide 31: Altarea: A Powerful and Revolutionary Model
ANNUAL RESULTS 2022 ALTAREA A POWERFUL AND REVOLUTIONARY MODEL A huge Leader in low carbon An entrepreneurial 31 market urban transformation mindset Fundamental needs The most comprehensive Unique corporate culture residential first real estate offering Developer’s DNA Change of use residential, ret
Slide 32: An Outstanding Human Asset
ANNUAL RESULTS 2022 AN OUTSTANDING HUMAN ASSET Rich and deep A strong social An Altarea 32 know-how commitment mindset 2 000 professionals Work content Commitment the most spectacular projects, A distinctive set of talents innovation, ambition… Group identity pride Pioneer professional Social value
Slide 33: A Strategic Roadmap Fitting into a New Cycle of Real Estate
ANNUAL RESULTS 2022 STRATEGY & OUTLOOKS A STRATEGIC ROADMAP FITTING INTO A NEW CYCLE OF REAL ESTATE The end of ▪ Low interest rates allowing to offset the continuous a cycle price increase since past 10 years 33 ▪ The rise in interest rates in 2022 marks the end of this cycle ▪ An adjustment is more
Slide 34: Low Carbon Urban Transformation, Foundation for Growth
ANNUAL RESULTS 2022 STRATEGY & OUTLOOKS THE LOW CARBON URBAN TRANSFORMATION, FUNDATION FOR GROWTH Residential, ▪ Gain of market share perform better than extension to new territories (regions outside large cities) the market a multi-brand and multi-product strategy 34 target of around 18,000 units a
Slide 35: New Businesses: Growth Surplus with Limited Risk
ANNUAL RESULTS 2022 STRATEGY & OUTLOOKS NEW BUSINESSES GROWTH SURPLUS WITH LIMITED RISK Real estate ▪ A strong belief asset manager ▪ Public funds (1) and club-deals 35 asset conversion and real estate of new generation ▪ Building a team through internal and external hires Digital and ▪ Small-scale
Slide 36: Altarea Reiterates Its Confidence on Its Market and Prospects
ANNUAL RESULTS 2022 STRATEGY & OUTLOOKS ALTAREA REITERATES ITS CONFIDENCE ON ITS MARKET AND PROSPECTS Change in real estate cycle at the end of the year 2022 36 Fundamentally optimistic view of its markets and its prospects Strong belief in the ability of the Group and its teams to perform better th
Slide 37: Guidances
ANNUAL RESULTS 2022 STRATEGY & OUTLOOKS GUIDANCES In 2023, FFO should decline due to the lack of mega projects in Business property, the anticipated slowdown in residential sales 37 and the investments in new businesses Years 2023 and 2024 will be dedicated to the new cycle adaptation, the carbon tr
Slide 38: Dividend Policy
ANNUAL RESULTS 2022 STRATEGY & OUTLOOKS DIVIDEND POLICY In 2023 (1) ▪ €10 per share (+2,6%) with the option of partial conversion into shares 38 ▪ Options between: 100% paid in cash 50% paid in shares (2) and 50% paid in cash For the subsequent years (3) ▪ Dividend payout of 75% FFO ▪ A minimum divi
Slide 39: Altarea, Leader in Low Carbon Urban Transformation
ANNUAL RESULTS 2022 39 ALTAREA, LEADER IN LOW CARBON URBAN TRANSFORMATION
Slide 40: Appendices & Glossary
05 ANNUAL RESULTS 2022 APPENDICES & GLOSSARY 40 Vauillons Marly-le-Roi 40
Slide 41: Disclaimer
ANNUAL RESULTS 2022 DISCLAIMER This presentation has been prepared for information purposes only and is intended to supplement other information published by Altarea, to which readers are encouraged to refer. It is not, and must not be interpreted as a solicitation, recommendation or offer to purcha
Slide 42: 2022 Income Statement
ANNUAL RESULTS 2022 2022 INCOME STATEMENT Funds from Changes in value, Business New Other In €m Retail Residential operations estimated expenses TOTAL Property businesses Corporate (FFO) and transaction costs Revenue 241.5 2,469.7 301.9 - 0.1 3,013.2 - 3,013.2 Change vs. 31/12/2021 +11.4% -1.1% -4.1
Slide 43: Net Asset Value (NAV)
ANNUAL RESULTS 2022 NET ASSET VALUE (NAV) 31/12/2022 31/12/2021 (€ millions) Chge €/share Chge (€ millions) €/share 43 Consolidated equity, Group share 2,375.2 +6.2% 116.6 +5.8% 2,236.2 110.2 Other unrealized capital gains 459.5 874.3 Deferred tax on the balance sheet for non-SIIC assets(a) 22.5 19.
Slide 44: Loan to Value
ANNUAL RESULTS 2022 LOAN TO VALUE (€ millions) 31/12/2022 31/12/2021 44 Gross debt 2,507 3,271 Cash and cash equivalents (952) (1,626) Consolidated net debt 1,555 1,646 Retail at value (FC)(a) 4,040 4,064 Retail at value (EM securities), other(b) 207 193 Investment properties valued at cost(c) 105 2
Slide 45: Consolidated Balance Sheet (1/2)
ANNUAL RESULTS 2022 CONSOLIDATED BALANCE SHEET (1/2) (€ millions) 31/12/2022 31/12/2021 Non-current assets 5,100.0 5,170.8 Intangible assets 344.3 332.5 o/w Goodwill 214.7 209.4 o/w Brands 105.4 105.4 45 o/w Customer relationships 6.7 o/w Other intangible assets 17.4 17.7 Property plant and equipmen
Slide 46: Consolidated Balance Sheet (2/2)
ANNUAL RESULTS 2022 CONSOLIDATED BALANCE SHEET (2/2) (€ millions) 31/12/2022 31/12/2021 Equity 3 959.5 3 543.6 Equity attributable to Altarea SCA shareholders 2 375.2 2 236.2 Share capital 311.4 310.1 Other paid-in capital 395.0 513.9 Reserves 1 342.0 1 200.5 Income associated with Altarea SCA share
Slide 47: Glossary
ANNUAL RESULTS 2022 GLOSSARY • Alignment rate: Ratio between the "aligned" revenue and the consolidated revenue. • ICR (Interest-Coverage-Ratio): Operating income/Net borrowing costs ("Funds from • Appraisal value – Retail: Value of portfolio assets including transfer duties (at 100% or operations"