Slide 1: 2020 full-year results
2020 full-year results February 16, 2021
Slide 2: Preliminary remarks
Preliminary remarks The 2020 annual consolidated financial statements were approved by the Board of Directors on February 15, 2021. The audit procedures have been completed by the statutory auditors. The audit certification report is underway. 2
Slide 3: Contents
Contents 01 02 03 04 Robust responses to an Moving forward with Resilient indicators and Conclusion unprecedented crisis Mercialys’ transformation results, supporting a to continue anticipating healthy balance sheet consumer trends structure Page 4 Page 15 Page 28 Page 39 3
Slide 4: Robust responses to an unprecedented crisis
Robust responses to an unprecedented crisis Vincent Ravat Chief Executive Officer Élizabeth Blaise Deputy Chief Executive Officer & Chief Financial Officer
Slide 5: Resilient indicators, despite the context, proving the relevance of Mercialys' model
Resilient indicators, despite the context, proving the relevance of Mercialys’ model Current financial vacancy rate (1) Collection rate (3) 97.1% 97.0% 96.7% 96.7% 97.4% 93.4% 94.3% 86.2% 3.8% 75.9% 63.9% 2.5% 2.5% 2.5% 2.5% 2016 2017 2018 2019 2020 2016 2017 2018 2019 Q1 2020 Q2 2020 Q3 2020 Q4 202
Slide 6: Year marked by the recurrence of drastic health measures
Year marked by the recurrence of drastic health measures March 15 to May 11 to October 30 to November 28, 2020 to January 31, 2021 to date May 10, 2020 October 29, 2020 November 27, 2020 January 30, 2021 Restrictions eased Closure of all non-food 1st lockdown Gradual easing of health 2nd lockdown st
Slide 7: Significant negative impacts in terms of footfall, but Mercialys strongly outperformed the market
Significant negative impacts in terms of footfall, but Mercialys strongly outperformed the market 2020 annual footfall down -21.3% versus 2019, +685bp vs. the CNCC national benchmark index 1st lockdown 2nd lockdown 40% March 15 to May 10, 2020 October 30 to November 27, 2020 Mercialys: -76% Mercialy
Slide 8: High conversion rates enabling retailer sales to remain in positive territory
High conversion rates enabling Mercialys retailer sales to remain in positive territory for the months when they were open Change in retailer sales for Change in Mercialys 2020 retailer’s sales months when they were fully open in 2020 by sector, excluding food retail +6.7% +7.1% +5.8% Household equi
Slide 9: Commercial leases in France not called into question by the health context
Commercial leases in France not called into question by the health context Leases establishing a long-term commercial relationship and usually based exclusively or 97.8% almost exclusively on fixed rent of Mercialys’ overall rental › Duration: income covered by ▼ Minimum of 9 years traditional comme
Slide 10: 1st lockdown: €13.5m allocated to tenants forced to close
1st lockdown: €13.5m allocated to tenants forced to close, with leases extended ensuring the sustainability of rental flows Establishment of a mediation charter between landlords and tenants, led by the French Ministry of Economy and Finance, to provide a framework for negotiations between stakehold
Slide 11: 2nd lockdown: partial waiving of 4th quarter rent
2nd lockdown: partial waiving of 4th quarter rent for stores ordered to close, accompanied by a tax credit mechanism for landlords Ongoing measures to support retailers in line with the French government’s recommendations Partial rent-free periods for tenants forced to close Mercialys can benefit fr
Slide 12: Decent collection levels for rent and charges
Decent collection levels for rent and charges, even before factoring in relief granted to retailers and exceptional provisions limiting the residual risk Collection rates at December 31, 2020 Residual arrears at December 31, 2020 Q1 Q2 Q3 Q4 97.4% 93.4% 94.3% 90.8% In millions of euros 100.0% 100.0%
Slide 13: Determination of the exceptional provisions recorded at end-December 2020
Determination of the exceptional provisions recorded at end-December 2020 In millions of euros December 31, 2020 Outstanding rent and charges excluding tax (without rent relief or provisions) (1) 24.0 2nd quarter 20.2 3rd quarter 3.8 Relief granted and to be granted at end-December 2020 for the 1st
Slide 14: Overall impact of €29.4m for the 2020 health crisis
Overall impact of €29.4m for the 2020 health crisis, equivalent to 1.5 months of billing for rent and charges excluding tax Period Profit and loss Amount before potential Treatment in profit and Impacts concerned heading deferral (€m) loss at Dec 31, 2020 (€m) Negotiations finalized 1st lockdown Inv
Slide 15: Moving forward with Mercialys' transformation
Moving forward with Mercialys’ transformation to continue anticipating consumer trends Vincent Ravat Chief Executive Officer Élizabeth Blaise Deputy Chief Executive Officer & Chief Financial Officer
Slide 16: Mercialys realigned around out-of-town areas in French regions
Mercialys realigned around out-of-town areas in French regions, which benefit from a lower concentration of stores INSEE segmentation of France Large urban areas Peri-urban spaces Mid-size and small urban Other districts areas Demographic % of total # of districts 44 % 26 % 20 % description 10 % % o
Slide 17: Sociodemographic trends benefiting out-of-town retail in regions
Sociodemographic trends that are benefiting out-of-town retail in regions, expressing proximity in these areas Simple access and rapid buying experience, two strengths of peri-urban local retail In 2020, people aged 65 and over represented 20.5% of the population, Factors supporting Mercialys’ peri-
Slide 18: Shopping centers, a mature sector overall, but with residual potential
Shopping centers, a mature sector overall, but with residual potential for dominant out-of-town retail sites in French regions Sales generated and forecast for shopping centers in France (1) with added space (2) CAGR 19-25 129 125 126 126 127 128 -0.2% 24 25 103 24 24 24 25 (20%) +1.8% Inter-distric
Slide 19: Calibrated implementation of the pipeline required
Calibrated implementation of the pipeline required, within a market that also offers opportunistic options that may supplement or replace it Total Investment still to be Target net Target net yield (in millions of euros) Completion date investment committed rental income on cost COMMITED PROJECTS 22
Slide 20: Major strategic changes in the retail property sector
Major strategic changes in the retail property sector, with different levels of maturity depending on the players 1 Concept 2 Format 3 Geography 4 Omni-channel 5 Logistics Faced with increasingly Exhaustive location The omni-channel utilitarian and local Certain large retailers, particularly traditi
Slide 21: Health crisis accelerated new consumer habits, particularly click and collect
The health crisis has undeniably accelerated the rapid development of new consumer habits, and particularly the use of click and collect Have you used one of the following services / taken one of the following actions Intention to continue at since the start of COVID-19? the same level or increase %
Slide 22: Ship from store represents an economically rational option to last-mile logistics
Ship from store represents an economically rational option to last-mile logistics Typical breakdown of an online retailer’s P&L % of revenues Revenues ~100 An economic equation that becomes more COGS ~35 to 40 complex to resolve as the urban density of regions decreases, making it complicated to Gro
Slide 23: Ocitô, integrated first- and last-mile logistics services
Ocitô, integrated first- and last-mile logistics services to support unified multi- local retail The health measures from 2020 have helped legitimize this service and accelerate its adoption Ocitô offers a response to 3 challenges 26 1 Shopping centers equipped Support retailers with their digital t
Slide 24: Further strengthening the appeal of sites by aggregating uses
Further strengthening the appeal of sites by aggregating uses Flexible office services, tailored to specific local demands, already developed and to follow 60 Workspaces available at the Angers and Grenoble sites 90% Average occupancy rate for closed offices <€500k Amount of investments per site >13
Slide 25: Asset rotation, underpinning the development of Mercialys' activities
Asset rotation, underpinning the development of Mercialys’ activities and the financing of its new growth drivers Ocitô SCI AMR Valence 2 Cap Cowork shopping center 57 units 7,444 sq.m GLA Dijon Chenôve Gassin hypermarket Besançon hypermarket shopping center 51 units Marcq-en-Barœul Monoprix Asnière
Slide 26: Sustainable and responsible strategy and investments
Sustainable and responsible strategy and investments 2020, milestone for the Mery’21 CSR strategy Strategy with 10 initiatives Delivering proven results Energy and GHG Asset resilience and adaptability Fight against climate change Stakeholder dialogue and relations -19% reduction in energy 93% of ce
Slide 27: Mercialys renews its ambition, with 4 priority commitments and 12 goals
Mercialys renews its ambition, with 4 priority commitments and 12 goals looking ahead to 2030 Determined following an extensive in-house and external consultation process Promoting more responsible retail Being an engaged employer › 100% of strategic assets certified › Maintaining best practices in
Slide 28: Resilient indicators and results, supporting a healthy balance sheet structure
Resilient indicators and results, supporting a healthy balance sheet structure Vincent Ravat Chief Executive Officer Élizabeth Blaise Deputy Chief Executive Officer & Chief Financial Officer
Slide 29: Impacts of the health crisis reflected in organic growth
Impacts of the health crisis reflected in organic growth (1) 3.4% 3.7% 3.6% 2.6% 1.2% 1.9% Impacts linked 3.5% to the health crisis 2.6% 2.5% 1.7% 1.6% -0.1% Lower contribution by Casual Leasing, -0.8% following the order to close stores -0.9% Contraction in variable rents, -1.3% following the order
Slide 30: Encouraging reletting trends, which are expected to drive up occupancy levels
Encouraging reletting trends, which are expected to drive up occupancy levels No significant increase in Change in vacancy rate (1) the number of retailers serving notice The impact of asset rotation in 2020 accounts for 57 at end-December 2020 VS 41 at end-December 2019 +97bp of the increase in the
Slide 31: Reletting approach focused on day-to-day needs
Reletting approach that remains focused on day-to-day needs, reducing exposure to both textiles and Mercialys’ main tenant Examples of retailer rotation in 2020 Economic exposure to the food anchor tenant Marcq-en-Barœul Saint-Étienne Textiles Health and Beauty Saint-Denis Morlaix Puteaux Paris Bres
Slide 32: Rental revenues down -8.6% on the back of the health crisis
Rental revenues down -8.6% on the back of the health crisis €191.9m Organic growth -7.0% Lease rights €3.0m + €2.9m + €0.4m - €1.5m - €2.8m - €0.3m - €1.8m - €2.5m Strategic Actions carried out vacancy (1) Lower on the portfolio, - €3.0m €175.4m contribution by and non- including the - €1.1m Casual
Slide 33: FFO down -23.1%
FFO down -23.1% €124.2m €95.5m - €16.4m + €1.3m + €5.1m Including the €0.0m No recognition of - €0.9m - €15.4m - €2.2m €10.4m accounting any tax credit impact of the rent Full-year impact of linked to the partial Including €13.7m of the March 2019 relief granted to Tight rent relief granted provisio
Slide 34: Financial structure under control despite the adverse context
Financial structure under control despite the adverse context Change in LTV and ICR Debt: fixed vs. floating rate exposure (1) 10.6x 7.4x 5.0x 8% 2020 41.1% 39.5% 38.6% 37.1% 38.1% 35.8% 92% 2019 H1 2020 2020 LTV excluding transfer taxes LTV including transfer taxes ICR Fixed-rate debt Variable-rate
Slide 35: High level of liquidity
High level of liquidity Change in the cost of drawn debt (1) (2) 2% 1.4% 1.3% 1% 1.1% 1% 1% 1% Drawn debt: €1,651.2m including 1% › €1,318.7m of bond debt 0% › €332.5m of commercial paper 2019 H1 2020 2020 (1) Including commercial paper program Cash and equivalents: €464.6m (2) This rate does not in
Slide 36: Sales at valuations in line with their appraisals
Sales at valuations in line with their appraisals, highlighting the liquidity of Mercialys’ portfolio ~€150m total net cash-in Disposal of the Asnières-sur-Seine Monoprix on December 21, 2020 Sale to a major institutional investor advised by Picture Asset Management for Mercialys Operation carried o
Slide 37: Change in portfolio value
Change in portfolio value Over 12 months €3,066 m excluding transfer taxes Total change on a like-for-like -5.5% -€177m basis (1) of which rent effect +0.9% +€27m -7.5% over 6 months of which yield effect -6.6% -€212m -10.3% over 12 months of which other effects +0.2% +€7m 06/2018 12/2018 06/2019 12
Slide 38: Change in EPRA NDV / EPRA NNNAV per share
Change in EPRA NDV / EPRA NNNAV per share (1) (2) €18.42/share, -7.4% over 6 months, -7.9% over 12 months EPRA NRV + €1.04 €20.01 › €21.18/share › Down -3.7% over 6 months › Down -7.4% over 12 months - €0.48 €18.42 - €1.93 EPRA NTA - €0.06 - €0.15 › €19.04/share Rent effect: › Down -3.3% over 6 mont
Slide 39: Conclusion
Conclusion Vincent Ravat Chief Executive Officer Élizabeth Blaise Deputy Chief Executive Officer & Chief Financial Officer
Slide 40: The health crisis is continuing to have an impact in 2021
The health crisis is continuing to have an impact in 2021 › From January 2: gradual nationwide rollout of a curfew from 6pm to › From January 31 and for an indefinite period: order to close all 6am affecting footfall at Mercialys centers non-food stores with a GLA of over 20,000 sq.m and non-food st
Slide 41: Dividend payment
Dividend payment Proposed dividend corresponding to 41% of 2020 FFO Ex-dividend right date: › Mercialys will propose a dividend of €0.43 per share at the 2021 General Meeting corresponding to the recurrent taxable profit available for distribution April 29, 2021 › In order to protect Mercialys’ bala
Slide 42: 2021 objectives
2021 objectives The latest restriction measures linked to the health crisis are significantly limiting visibility over activities due to the closure of a large part of Mercialys’ shopping centers and the curfew As a result, the Company is not in a position at this stage to publish specific full-year
Slide 43: Appendices
Appendices PIERCIALYS
Slide 44: Financial calendar
Financial calendar 2021 April 19 April 22 July 28 July 29 October 18 Activity at 2021 Annual Press release Conference Activity at March 31, Shareholders’ on 2021 call on 2021 September 30, 2021 Meeting half-year results half-year results 2021 (after market close) (after market close) (after market c
Slide 45: Organizational structure
Organizational structure › All core business functions carried out in-house, 129 employees excluding specific mandates at end-December 2020 › Certain support functions brought back in-house, others still outsourced Support functions brought back in-house Real Estate Management Human Resources Real E
Slide 46: Shopping center portfolio structure
Shopping center portfolio structure Number of shopping centers and average value 73.5 65.9 61.5 48.7 26.9 34.3 93 69 59 58 48 49 2010 2012 2014 2016 2018 2020 Number of shopping centers in portfolio Average gross asset value of shopping centers (€m) Shopping center breakdown by size (% of portfolio
Slide 47: Rental income structure
Rental income structure Breakdown of Mercialys’ rental income by type of retailer – Consolidated vision Breakdown of Mercialys’ rental income (% of annualized rental income at December 31, 2020 by type of retailer – Economic exposure and December 31, 2019) (% of annualized rental income at December
Slide 48: Rental income structure
Rental income structure Casino group lease schedule H&M group lease schedule (main leases: hypermarkets, supermarkets & Monoprix stores) % held by Lease Lease Site Lease start date Lease end date Lease characteristics Site Type Lease characteristics Mercialys start date end date Saint-Denis 100% Sup
Slide 49: Rental income structure
Rental income structure Breakdown of Mercialys’ rental income by business sector (% of annualized rental income at December 31, 2020 – Lease expiry schedule including exposure to the Casino group) (percentage of leases expiring / guaranteed minimum rent) 23.1% Personal items Restaurants and catering
Slide 50: Financing structure and debt schedule
Financing structure and debt schedule Debt schedule at end-2019 (1) Debt schedule at end-2020 (1) in €m in €m 750 568.7 300 225 225 300 300 150 150 60 35 30 30 30 35 30 30 25 30 30 Confirmed bank facilities Casino cash advance Bonds Revolving credit facility Confirmed bank facilities Casino cash adv
Slide 51: Shareholding structure
Shareholding structure At December 31, 2020 Treasury shares Generali group 0.56% 8.01% Casino group 20.16% December December December 31, 2018 31, 2019 31, 2020 Number of shares outstanding 92,049,169 92,049,169 92,049,169 at the end of the period Average number of shares outstanding 92,049,169 92,0
Slide 52: Outstanding CSR strategy Mery'21 regularly recognized since its launch
Outstanding CSR strategy Mery’21 regularly recognized since its launch Score: 87/100 Score: #1 on SBF 120 BPR Rating: A #1 in its 85/100(1) Score: No review to Rating: No review to Grand Prix “All Gold Award No review to 2020 Green Star A List status category 64/100(2) date A date Categories” sBPR d
Slide 53: EPRA performance indicators
EPRA performance indicators December 31, 2019 June 30, 2020 December 31, 2020 EPRA earnings - € per share 1.35 0.69 1.04 EPRA NAV - € per share 20.53 19.72 19.08 EPRA NNNAV - € per share 20.01 19.90 18.42 EPRA NRV - € per share 22.87 22.00 21.18 EPRA NTA - € per share 20.49 19.68 (1) 19.04 EPRA NDV
Slide 54: FFO & EPRA earnings
FFO & EPRA earnings In thousands of euros December 31, 2019 December 31, 2020 Invoiced rents 188,849 172,911 Lease rights 3,003 2,529 Rental revenues 191,853 175,440 Property taxes -14,608 -14,248 Rebilling to tenants 13,325 12,684 Non-recovered property taxes -1,283 -1,564 Service charges -33,202 -
Slide 55: Net income attributable to owners of the parent
Net income attributable to owners of the parent In thousands of euros December 31, 2019 December 31, 2020 FFO 124,168 95,541 Depreciation and amortization -40,440 -40,777 Other operating income and expenses 7,682 34,223 Impact of hedging ineffectiveness, banking default risk and partial redemption o
Slide 56: Balance sheet
Balance sheet In thousands of euros December 31, 2019 December 31, 2020 Intangible assets 3,588 4,052 Property, plant and equipment other than investment property 857 1,605 Investment property 2,222,452 2,050,907 Right-of-use assets 9,981 8,902 Investments in associates 36,355 38,918 Other non-curre
Slide 57: Breakdown of assets
Breakdown of assets Average appraisal yield rate: 5.72% at December 31, 2020 Appraisal value Appraisal value Gross leasable Appraised Number net rental of assets (excl. transfer taxes) (incl. transfer taxes) area Type of property at December 31, at December 31, 2020 at December 31, 2020 at December
Slide 58: Disclaimer
Disclaimer › This communication contains forward-looking information heading in the Universal Registration Document filed by and statements about Mercialys. Forward-looking Mercialys on March 23, 2020. statements are statements that are not historical facts. These statements include financial projec