Altarea Sca · EURONEXT:ALTA
Altarea Sca — Altarea — Shareholder Meeting (June 2023)
51 slides from Altarea Sca's shareholder meeting presentation, Jun 8, 2023
Slide 1: Altarea, Leader in Low-Carbon Urban Transformation – Annual General Meeting
ALTAREA, LEADER IN LOW-CARBON URBAN TRANSFORMATION ANNUAL GENERAL MEETING JUNE 8, 2023
Slide 2: Agenda
AGENDA Summary agenda & constitution of the bureau 01 - 2022 MANAGEMENT REPORT (operational & financial performances) ANNUAL GENERAL MEETING 2023 02 - LEADER IN LOW CARBON URBAN TRANSFORMATION (climate performance) 03 - STRATEGIC ROADMAP AND OUTLOOKS 04 - FIRST HALF 2023 – BUSINESS UPDATE 05 - SUPER
Slide 3: Summary Agenda – Ordinary General Meeting
ANNUAL GENERAL MEETING 2023 SUMMARY AGENDA ORDINARY GENERAL MEETING 2022 ACCOUNTS • Review and approval of parent company and consolidated accounts for the financial year ending 31/12/2022 • Appropriation of net income and payment of dividend 3 SAY ON PAY • Approval of the compensation of corporate
Slide 4: Summary Agenda – Extraordinary General Meeting
ANNUAL GENERAL MEETING 2023 SUMMARY AGENDA EXTRAORDINARY GENERAL MEETING FINANCIAL AUTHORISATIONS AND DELEGATIONS OF AUTHORITY • Authorisation granted to the Management (la Gérance) to cancel shares held by the Company following the purchase of its own shares • Delegations of authority and financial
Slide 5: Constitution of the Bureau
00 ANNUAL GENERAL MEETING 2023 CONSTITUTION OF THE BUREAU Valhubert Paris
Slide 6: 2022 Management Report
01 ANNUAL GENERAL MEETING 2023 2022 MANAGEMENT REPORT Operational and financial performance 6 Campus de l’ENS Cachan
Slide 7: 2022 Results and New Strategic Roadmap
ANNUAL GENERAL MEETING 2023 2022 RESULTS AND NEW STRATEGIC ROADMAP Robust New strategic Adjusted 7 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% decarbonisatio
Slide 8: Retail: A Strong Recovery
ANNUAL GENERAL MEETING 2023 RETAIL RETAIL: A STRONG RECOVERY A positive ▪ Tenant’s sales +20% vs 2021 dynamic +4% vs 2019 ▪ Increase of average shopping basket value 8 footfall : 91% of 2019 level Sustained demand ▪ 367 leases signed in 2022 (+13%) from retailers €33.5m in rents CAP3000 (Nice) ▪ Fin
Slide 9: Retail: Rolling Out a Strategy of Asset Management
ANNUAL GENERAL MEETING 2023 RETAIL ROLLING OUT A STRATEGY OF ASSET MANAGEMENT Assets under management (AuM) 57% 43% in growth 9 +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 G
Slide 10: Residential: A Year with Two Phases
ANNUAL GENERAL MEETING 2023 RESIDENTIAL A YEAR WITH TWO PHASES A favourable trend ▪ Real estate, a safe heaven by excellence in the first part A residential market structurally under-supplied, Interest rate still of the year attractive, real estate as best protection against inflation Efficient offe
Slide 11: Business Property: A Record Year of Activity
ANNUAL GENERAL MEETING 2023 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 11 ▪ Delivery of 3 office buildings to CNP Assurances 40,900 m² in
Slide 12: Business Property: Logistics
ANNUAL GENERAL MEETING 2023 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 12 ▪ Extension of value chain to last mile logistics
Slide 13: Financial Performance: Stable Revenue, Rising Operational Income
ANNUAL GENERAL MEETING 2023 FINANCIAL PERFORMANCE STABLE REVENUE RISING OPERATIONAL INCOME FFO GROWTH IN LINE WITH GUIDANCE 13 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.
Slide 14: Financial Performance: A Strong Financial Structure
ANNUAL GENERAL MEETING 2023 FINANCIAL PERFORMANCE A STRONG FINANCIAL STRUCTURE FINANCE Equity at fair value (1) €157.1 /share (-0.3%) 14 €3,200m €1,584m Minority equity at fair value +€277m in 2022 (mainly from partnerships) Net debt (bonds and bank loans) €1,555m -€91m over the year ▪ 2022 average
Slide 15: Altarea Leader in Low Carbon Urban Transformation
02 ALTAREA ANNUAL GENERAL MEETING 2023 LEADER IN LOW CARBON URBAN 1 5 TRANSFORMATION 15 Climate performance Amytis Angers
Slide 16: Consolidated Pipeline
ANNUAL GENERAL MEETING 2023 LEADER IN LOW CARBON URBAN TRANSFORMATION CONSOLIDATED PIPELINE (1) €21.3 bn potential value 16 900 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, as of 31/12/2022. Projects from left to right and from
Slide 17: Low Carbon Retail, a Differentiating Skill for Asset Management
ANNUAL GENERAL MEETING 2023 CLIMATE PERFORMANCE LOW CARBON RETAIL, A DIFFERENTIATING SKILL FOR ASSET MANAGEMENT Trailblazing ▪ Decarbonisation trajectory initiated since 2010 initiatives carbon-neutral target by 2030 17 ▪ Low carbon strategy deployed across all assets Highest standards for ▪ Systema
Slide 18: Low Carbon Housing, an Expertise of Altarea
ANNUAL GENERAL MEETING 2023 CLIMATE PERFORMANCE LOW CARBON HOUSING, AN EXPERTISE OF ALTAREA A comprehensive ▪ New housing offering performance ≥ RE2020 threshold 2025 (average cost+ ~€100 / m²) 18 ▪ Rehabilitation of historic buildings ▪ Timber structure CLT (1) 2023: Altarea becomes the sole shareh
Slide 19: Transformation of Existing Office Buildings, a Key Skill
ANNUAL GENERAL MEETING 2023 CLIMATE PERFORMANCE TRANSFORMATION OF EXISTING OFFICE BUILDINGS, A KEY SKILL A new era of ▪ New environmental standards asset transformation tertiary decree, taxonomy 19 ▪ A key challenge of value protection in a context of lower requirements on space ▪ Critical issues fo
Slide 20: Best-in-Class Performance of Real Estate Sector in Taxonomy
ANNUAL GENERAL MEETING 2023 CLIMATE PERFORMANCE ALTAREA BEST-IN-CLASS PERFORMANCE OF REAL ESTATE SECTOR IN TAXONOMY 20 Taxonomy, ▪ A universal European standard new standard for easy benchmark between companies in the same sector environmental ▪ Consolidated financial statement indicators based perf
Slide 21: Carbon Performance: Lower Emissions and Carbon Intensity
ANNUAL GENERAL MEETING 2023 CLIMATE PERFORMANCE CARBON PERFORMANCE LOWER EMISSIONS AND CARBON INTENSITY -30.6% Thousand of tons of CO2 equivalent Methodology in group share 21 1,563 Property development: calculate carbon performance at the percentage of completion Same principles and data used for a
Slide 22: Accelerating the Low-Carbon Transition
ANNUAL GENERAL MEETING 2023 CLIMATE PERFORMANCE ACCELERATING THE LOW-CARBON TRANSITION European taxonomy ▪ 2022: a satisfactory first year, with disparities by 22 brand to be reduced in the future ▪ Objective: more than half of the revenue aligned, on a constant regulatory basis Decarbonisation ▪ 20
Slide 23: Strategic Roadmap and Outlooks
03 ANNUAL GENERAL MEETING 2023 STRATEGIC ROADMAP AND OUTLOOKS 23 Cité de la Gastronomie Paris Rungis
Slide 24: A Strategic Roadmap Fitting into a New Cycle of Real Estate
ANNUAL GENERAL MEETING 2023 STRATEGIC ROADMAP & 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 (2008-2022) price increase since past 10 years 24 ▪ The rise in interest rates in 2022 marks the end of this
Slide 25: A Medium-Term Outlook Based on Two Strategic Priorities
ANNUAL GENERAL MEETING 2023 STRATEGIC ROADMAP & OUTLOOKS A MEDIUM-TERM OUTLOOK BASED ON TWO STRATEGIC PRIORITIES Low-carbon urban ▪ Residential: perform better than the market transformation, New territories, multi-brand and multi-product strategy 25 foundation for Affordable, cost-effective and low
Slide 26: Strategic Roadmap & Outlooks
ANNUAL GENERAL MEETING 2023 STRATEGIC ROADMAP & OUTLOOKS STRATEGIC ROADMAP & OUTLOOKS Years 2023 and 2024 will be dedicated to the new cycle adaptation, the low-carbon transition 26 and the new businesses investment Medium-term FFO target: €325m-€375m, i.e. +20% to +35% vs 2022 taking into considera
Slide 27: First Half 2023 Business Update
04 ANNUAL GENERAL MEETING 2023 FIRST HALF 2023 - BUSINESS UPDATE 27 Cité de la Gastronomie Paris Rungis
Slide 28: Further Deterioration of the Environment in the First Half of 2023
ANNUAL GENERAL MEETING 2023 BUSINESS UPDATE FURTHER DETERIORATION OF THE ENVIRONMENT IN THE FIRST HALF OF 2023 Financing issues ▪ Increase in interest rates 28 for Individuals > 4% including insurance, usury rate 4.68% ▪ Decline in new housing loans down 39.2% yoy The real estate ▪ Fall in new order
Slide 29: Residential Development: First Set of Government Measures
ANNUAL GENERAL MEETING 2023 BUSINESS UPDATE RESIDENTIAL DEVELOPMENT FIRST SET OF GOVERNMENT MEASURES Cyclical measures ▪ Improving access to credit for Individuals that reflect a growing usury rate, prudential HCSF(1) rules, Zero percent loan extension 29 awareness from the ▪ Housing purchase progra
Slide 30: Altarea: Adaptation to the New Cycle
ANNUAL GENERAL MEETING 2023 BUSINESS UPDATE ALTAREA ADAPTATION TO THE NEW CYCLE 30 To get through this phase of adaptation to the new cycle, Altarea can rely on its strengths: a diversified business model, operational agility, solid financial structure and experienced management team, while continui
Slide 31: Residential: Adjusting Supply to Demand, Speeding Up Low-Carbon Strategy
ANNUAL GENERAL MEETING 2023 BUSINESS UPDATE RESIDENTIAL: ADJUSTING SUPPLY TO DEMAND, SPEEDING UP THE LOW-CARBON STRATEGY Cleaning out ▪ Adapt prices to customers' solvency the offer designed Support measures, targeted price cuts in the previous cycle ▪ Sell off the vast majority of units concerned b
Slide 32: Residential: Merger of Woodeum and Pitch Immo
ANNUAL GENERAL MEETING 2023 BUSINESS UPDATE RESIDENTIAL : SPEEDING UP THE LOW-CARBON STRATEGY Change of scale ▪ Capitalize on the leading position taken by by creating the French Woodeum in low-carbon construction in property 32 leading low-carbon development sector, with the innovative developer: a
Slide 33: Business Property and Retail
ANNUAL GENERAL MEETING 2023 BUSINESS UPDATE BUSINESS PROPERTY AND RETAIL Business property, ▪ Minimise risk exposure to Business property limited exposure ▪ Active monitoring on inner Paris market 33 ▪ No contribution to 2023 results as a result of the lack of exposure Logistics, ▪ XXL platform purs
Slide 34: New Businesses: Asset Management
ANNUAL GENERAL MEETING 2023 BUSINESS UPDATE NEW BUSINESSES: ASSET MANAGEMENT Altarea Investment ▪ AMF approval granted on April 14th for the Managers (Alta IM) creation of an asset management company 34 ▪ Team set up internally and strengthened by external experienced professionals ▪ Products dedica
Slide 35: New Businesses: Solar Energy & Data Centers
ANNUAL GENERAL MEETING 2023 BUSINESS UPDATE NEW BUSINESSES: SOLAR ENERGY & DATA CENTERS Setting up a pipeline ▪ Team set up, being strengthened of photovoltaic ▪ Tactical acquisitions in the pipe 35 infrastructure accelerating the internalisation of operational know-how ▪ Various infrastructure type
Slide 36: Roadmap, Situation to Date
ANNUAL GENERAL MEETING 2023 BUSINESS UPDATE ROADMAP, SITUATION TO DATE Altarea has one of the strongest financial structure in the French real estate sector. The Group has enough resources to get through this phase of adaptation to the new cycle and to continue investing in high-potential new activi
Slide 37: Strategy & Outlooks: Dividend Policy
ANNUAL GENERAL MEETING 2023 STRATEGY & OUTLOOKS DIVIDEND POLICY In 2023 (1) ▪ €10 per share (+2,6%) with the option of partial conversion into shares 37 ▪ Options between: 100% paid in cash 50% paid in shares (with a subscription price of €95.81) and 50% paid in cash Alain Taravella's family group (
Slide 38: Supervisory Board's Report
05 ANNUAL GENERAL MEETING 2023 SUPERVISORY BOARD'S REPORT 38 38 Quai St Pierre Toulouse (31)
Slide 39: 2022 Company Accounts
ANNUAL GENERAL MEETING 2023 2022 COMPANY ACCOUNTS Annual Financial statements Consolidated Financial statements 39 Revenue €13.0 m Revenue €3,013.2 m -0.5% Operating income - €8,3 m Net Financial income €131,1 m Funds from operations €275,4 m +4.2% (FFO) Group share Net Exceptional income €88,5 m Ne
Slide 40: Appropriation of 2022 Results – Setting of the Dividend
ANNUAL GENERAL MEETING 2023 APROPRIATION OF 2022 RESULTS – SETTING OF THE DIVIDEND(1) Dividend per share €10.00 40 Number of shares 20,375,804 General Partner dividend €203,758,040.00 General Partner - bonus dividend (1.5%) €3,056,370.60 Global dividend 2022 €206,814,410.60 o/w accounting profit €20
Slide 41: Proposed Dividend for Fiscal Year 2022: Payment Options and Dates
ANNUAL GENERAL MEETING 2023 PROPOSED DIVIDEND FOR FISCAL YEAR 2022 PAYMENT OPTIONS AND DATES Terms of payment: Full payment in cash or 50% payment in cash and 50% in shares Payment in shares option Terms Average opening share price of the 20 trading days preceding the General Meeting €117.56 10% dis
Slide 42: Provisional Dividend Taxes
ANNUAL GENERAL MEETING 2023 PROVISIONAL DIVIDEND TAXES (1) Taxes 42 ‣ €5.59 (55.9%): distribution of « tax-free income» €10.00 ‣ €4.31 (43.1%): distribution of « taxable income» per share ‣ €0.10 (1.0%): repayment of premium on shares +0.25€/s vs 2021 (1) The amounts presented above are determined o
Slide 43: Say-on-Pay on the Compensation of Corporate Officers
ANNUAL GENERAL MEETING 2023 SAY-ON-PAY ON THE COMPENSATION OF CORPORATE OFFICERS PRINCIPLES Ex post vote for 2022 Ex ante vote for 2023 43 3 resolutions on the compensation of 1 overall resolution on the remuneration corporate officers: policy for corporate officers > for all corporate officers (5th
Slide 44: Compensation Paid or Allocated in 2022 – Management
ANNUAL GENERAL MEETING 2023 COMPENSATION PAID OR ALLOCATED IN 2022 MANAGEMENT: ALTAFI 2 (Alain Taravella) In € thousands 2018 2019 2020 2021 2022 44 Fixed compensation 2,721 2,000 2,000 2,000 1,800 o/w Altareit 628 1,000 1,000 1,000 900 o/w Altarea 2,093 1,000 1,000 1,000 900 Variable compensation (
Slide 45: Compensation Paid in 2022 to Other Corporate Officers
ANNUAL GENERAL MEETING 2023 COMPENSATION PAID IN 2022 TO OTHER CORPORATE OFFICERS SUPERVISORY BOARD Annual envelop of €620,000 unchanged 45 Effective amounts 2022 Annual envelop €620,000 €571,000 (unchanged) €3,000 / by effective attendance €201,000 Supervisory SB members to SB meeting (unchanged) B
Slide 46: Compensation Policy for the Financial Year 2023 – Management
ANNUAL GENERAL MEETING 2023 COMPENSATION POLICY FOR THE FINANCIAL YEAR 2023 (EX ANTE) - MANAGEMENT: ALTAFI 2 (Alain Taravella) ALTAREA ALTAREIT 46 Fixed compensation €900,000 €900,000 > Envelopes unchanged Number of shares(1) Variable 1.5% x (net income – €60m) x > Thresholds unchanged compensation
Slide 47: Compensation Policy for the Financial Year 2023 – Supervisory Board
ANNUAL GENERAL MEETING 2023 COMPENSATION POLICY FOR THE FINANCIAL YEAR 2023 SUPERVISORY BOARD Annual envelop of €620,000 maintained 47 Annual envelop €620,000 (unchanged) €3,000 / by effective attendance Supervisory SB members to SB meeting (unchanged) Board (SB) Compensation for one-off assignments
Slide 48: Authorisations and Delegations of Authority to the Management
ANNUAL GENERAL MEETING 2023 AUTHORISATIONS AND DELEGATIONS OF AUTHORITY TO THE MANAGEMENT SUBMITTED TO THE GENERAL MEETING 48 Authorisations to increase Absence of comments or reduce the share capital
Slide 49: Statutory Auditors' Reports
06 ANNUAL GENERAL MEETING 2023 STATUTORY AUDITORS’ REPORTS 49 49 Gare Paris Austerlitz
Slide 50: Dialogue with Shareholders
07 ANNUAL GENERAL MEETING 2023 DIALOGUE WITH SHAREHOLDERS 50 50 Grands Moulins (Corbeil-Essonnes) Les Madriers – Montreuil (93)
Slide 51: Vote on Resolution
08 ANNUAL GENERAL MEETING 2023 VOTE ON RESOLUTION 51 Bridge