Altarea Sca · EURONEXT:ALTA
Altarea Sca — Altarea Cogedim — FY2013 Earnings Presentation
39 slides from Altarea Sca's earnings presentation, 2014
Slide 1: 2013 Annual Results
www.altareacogedim.com RÉSULTATS ANNUELS 2013 1
Slide 2: Disclaimer
Disclaimer • This presentation is not an offer to sell, a solicitation of an offer to sell or exchange securities, nor does it represent a recommendation to buy or to sell Altarea Cogedim securities. • The distribution of this document in some countries may be restricted by law or regulation. As suc
Slide 3: INTRODUCTION P. 4 2013 ACHIEVEMENTS
INTRODUCTION P. 4 2013 ACHIEVEMENTS P. 5 FINANCE P. 14 STRATEGY & OUTLOOK P. 22 CONCLUSION P. 34 APPENDICES P. 35 2013 ANNUAL RESULTS 3
Slide 4: Introduction
INTRODUCTION 2013 ANNUAL RESULTS 4
Slide 5: 2013 Achievements
2013 ACHIEVEMENTS 2013 ANNUAL RESULTS 5
Slide 6: 2013 Achievements Summary
2013 ACHIEVEMENTS SUMMARY Long-term partnership with Allianz A STRATEGIC € 395 million in equity raised PARTNERSHIP Consolidated LTV reduced at 41.7% (vs 49.3% in 2012) Solid operational performance in France Growth in the pipeline MOMENTUM FOR GROWTH IN ALL New product launches BUSINESSES Strong up
Slide 7: Partnership with Allianz: A Strategic Partnership
PARTNERSHIP WITH ALLIANZ A STRATEGIC PARTNERSHIP • Partnership over five "core" assets owned by the Group • A partnership for each asset together with a framework agreement to allow Altarea Cogedim to maintain control of assets following the transaction(1) PORTFOLIO MAIN TERMS & CONDITIONS • Term: 1
Slide 8: Shopping Centers Portfolio
SHOPPING CENTERS PORTFOLIO • Excellent operational performance of French assets (84% of the portfolio) • A portfolio made up mainly of large assets (44 assets, average value of €75 million) • International (16% of the portfolio): decline in rental values, particularly in Italy OPERATIONAL PERFORMANC
Slide 9: Shopping Centers Pipeline
SHOPPING CENTERS PIPELINE • New projects under development, for €430 million in investment • The pipeline potentially represents 70% of the standing portfolio (rents) (1) • Back to pre crisis levels in growth dynamic NEXT-GENERATION PROJECTS HIGH RETURN & STRICT COMMITMENT POLICY Surface area GLA 5,
Slide 10: E-commerce: Implementing a Digital & Multichannel Offering
E-COMMERCE IMPLEMENTING A DIGITAL & MULTICHANNEL OFFERING • Redesign of the website and higher quality positioning • Implementation of the multi-channel strategy « THE MULTI-CHANNEL REIT » : WORK IN PROGRESS OPERATIONAL INDICATORS MARKET PLACE STORE TO WEB WEB TO STORE Visitor numbers(1) 188 million
Slide 11: Residential: Strong Growth in Volumes
RESIDENTIAL STRONG GROWTH IN VOLUMES • Reservations driven by sales to institutional investors and change in product mix • A bang in line offer with demand (entry-level / mid-range, serviced residences, new neighborhoods) • Decline in operating results: base effect and maintain in absorption rate RE
Slide 12: Offices: Back to Growth
OFFICES BACK TO GROWTH • Enlargement of the portfolio of projects under development (110,000 m² + for €597 million(1)) • A recovery leveraged by AltaFund (≈ half of new projects) • Contribution to operating income up significantly OFFICES OPERATING INCOME (in € millions) PORTFOLIO OF PROJECTS UNDER
Slide 13: Sustainable Development and CSR: A Responsible Company
SUSTAINABLE DEVELOPMENT AND CSR A RESPONSIBLE COMPANY • Sustainable development: a key issue for the Group • A major player in job creation MARKED PERFORMANCE MORE THAN 14,000 DIRECT AND INDIRECTS JOBS • No. 1 French developer (1) & 3rd among French property companies 1,300 direct jobs • In the top
Slide 14: Finance
FINANCE 2013 ANNUAL RESULTS 14
Slide 15: Results
RESULTS Growth in equity €1.833 billion +35% A STRENGTHENED Reduction of LTV ratio 41.7% -762 bps BALANCE SHEET Robust liquidity €338 million Operating cash flow €218.6 million -3% RESULTS IN LINE WITH FFO (Group share) €142.2 million -5% OBJECTIVES EPRA NNNAV €1.4912 billion +5% FFO (Group share) /
Slide 16: A Strengthened Balance Sheet: Impact of Partnerships
A STRENGTHENED BALANCE SHEET IMPACT OF PARTNERSHIPS • Growth in consolidated equity: +64% in two years - €125 million in script dividends - €609 million in equity raised from third parties (minority interests) MAIN TRANSACTIONS 2011-2013 CONSOLIDATED EQUITY (2) In € millions 2012 2013 TOTAL Subordin
Slide 17: Financing and Liquidity: Very Solid Ratios
FINANCING AND LIQUIDITY VERY SOLID RATIOS • LTV: 41.7% • ICR: 4.5x • Term: 4.1 years DEBT MATURITY SCHEDULE (excluding property NET DEBT: €1.837 billion (-16%) development, in € millions) RETAIL Available 553 REIT cash and cash 441 44% equivalents 92% 367 MORTGAGE €338 million DEBT CORPORATE 248 DEB
Slide 18: Operating Cash Flow: Stability
OPERATING CASH FLOW STABILITY • Decline in contributions from Residential and E-commerce segments • Offset by sound performances in brick-and-mortar Retail and Office property OPERATING CASH FLOW CHANGE IN CONTRIBUTION BY BUSINESS ++ • Full consolidation of Cap 3000 €224.3 mil. €218.6 mil. -3% • Dis
Slide 19: From Operating Cash Flow to Net Income
FROM OPERATING CASH FLOW TO NET INCOME • Consolidated FFO €167.7 million (+6%) • FFO (Group share) €142.2 million (-5%) €12.7/share (-11%) • Net consolidated income €220.0 million • Net income (Group share) €146.2 million €13.0/share (+146%) In € millions - 45.0 218.6 + 87.7 220.0 Change in - 37.9
Slide 20: EPRA NNNAV €128.7 per Share (-1.6%)
EPRA NNNAV (1) €128.7 PER SHARE (-1.6%) • EPRA NNNAV up 4.6% to €1.491 billion • On a per-share basis, a 1.6% decline to €128.7/share (dilutive effect of the 2012 dividend payout in shares) In €/share • Dividend impact: - 2013 distribution -3.6 130.7 - Script dividend (536,364 new shares) other 128.
Slide 21: Dividend
DIVIDEND • €10 dividend per share for FY 2013 proposed at the General Meeting of May 7, 2014 • €10.0 dividend, o/w • €0.35/share as repayment of share premiums • €2.58/share as distribution of tax-exempt income (SIIC) • €7.07/share as distribution of taxable income • An option to reinvest the divide
Slide 22: Strategy & Outlook
STRATEGY & OUTLOOK 2013 ANNUAL RESULTS 22
Slide 23: Operational Model: A Unique Platform
OPERATIONAL MODEL A UNIQUE PLATFORM • Multi-expertise team • Comprehensive ability to design innovative and profitable projects • Adaptability, creativity, efficient structure and strong motivation driven by entrepreneurial spirit DEVELOPMENT PROJECTS UNDERWAY MANAGED MULTI-EXPERTISE TEAM BY THE GRO
Slide 24: Financial Model: Risk and Profitability Management
FINANCIAL MODEL RISK AND PROFITABILITY MANAGEMENT • A fundamentally "Retail REIT" risk profile • Significant contribution from other businesses for limited allocation of equity • Major investment partners at the center of the model OPTIMIZATION OF RISK AND PROFITABILITY MAJOR INVESTMENT PARTNERS All
Slide 25: Structure Evolution: Consolidation and Durability
STRUCTURE EVOLUTION CONSOLIDATION AND DURABILITY • Supervisory Board: appointment of a new President • Executive Board: enlargment • Foncière des Régions exits and is replaced by Crédit Agricole Assurances Founders Strategic financial shareholders General partner (1) Alain Jacques TARAVELLA NICOLET
Slide 26: L'Avenue 83 – Toulon La Valette: A Controlled-Risk Investment
L’AVENUE 83 – TOULON LA VALETTE A CONTROLLED-RISK INVESTMENT • The Group acts as: once developer, investor, garantor and asset manager. • The Group sources the project (land management, authorizations, design). • For Allianz: a secured investment in terms of investment (property development contract
Slide 27: Block Housing Sales: A Mixed-Use Product for Enhanced Return
BLOCK HOUSING SALES A MIXED-USE PRODUCT FOR ENHANCED RETURN • The Group acts as developer and manager of residential and retail property. • For Crédit Agricole Assurances, the mixed-use nature of the product offers an attractive overall return. • The program contributes to the development of a "New
Slide 28: Cogedim Club: A Combined Developer-Manager-Investor Approach
COGEDIM CLUB ®: A COMBINED DEVELOPER- MANAGER-INVESTOR APPROACH • The Group is at once developer, manager and investor (subletting). • Crédit Agricole Assurances invested in: - the residences (block sales) - the management company (35% interest) Increased return and appreciating business assets •
Slide 29: AltaFund: The Office Property Growth Driver
ALTAFUND THE OFFICE PROPERTY GROWTH DRIVER • The Group acts as developer, fund and asset manager and investor. • AltaFund draws from the expertise of the Group: exclusive Cogedim developer, 100% discretionary investment • Significant Group stake (17% of AltaFund) => ensure rigorous management for in
Slide 30: E-Commerce Campus // Qwartz: Crossing the Barriers Between Channels
E-COMMERCE CAMPUS // QWARTZ CROSSING THE BARRIERS BETWEEN CHANNELS • A unique multichannel offer for retailers • A large range of brick-and-mortar and/or digital channels BRICK-AND-MORTAR DIGITAL SHOP E-COMMERCE QWARTZ CAMPUS EXPERIENCE WEBSITE STORE BRAND – MOBILE APP RETAILERS WINDOW RDC MOBILE MA
Slide 31: 2014: A Year of Transition
2014 A YEAR OF TRANSITION • Growth in rental income like-for-like • Impact of Allianz partnership (rental income sharing) • Digital investments • Increase in sales (new offer) ONGOING TRENDS • End of the contribution of « millésime 2010-2011 » programs • Temporary decrease in results • New projects
Slide 32: 2017-2018 Assumptions
2017-2018 ASSUMPTIONS • Credit market: similar conditions MACRO-ECONOMIC • Real estate prices and rents under pressure ASSUMPTIONS • End of worsening in legal and fiscal environment • Pipeline roll-over funded by sharing/disposals of standing assets • E-commerce contribution back to equilibrium OPER
Slide 33: Risk Profile & Financial Targets
2017-2018 RISK PROFILE & FINANCIAL TARGETS Lower risk profile (LTV < 45%) Pursuit of the partnership policy FFO 2017-2018: > €200 mil. in Group share 2015 dividend: €10.0 /share minimum with script dividend option in shares 2013 ANNUAL RESULTS 33
Slide 34: Conclusion
CONCLUSION 2013 ANNUAL RESULTS 34
Slide 35: Appendices
APPENDICES 2013 ANNUAL RESULTS 35
Slide 36: P&L
P&L 12/31/2013 12/31/2012 restated 12/31/2012 published Changes in Changes in value, value, Funds from estimated Funds from estimated Funds from In € millions operations (FFO expenses TOTAL operations (FF expenses TOTAL operations (FFO) ) and O) and transaction transaction costs costs Shopping cen
Slide 37: Balance Sheet (1/2)
BALANCE SHEET (1/2) 12/31/2013 12/31/2012 12/31//2012 In € millions restated published NON-CURRENT ASSETS 3 600.7 3 558.7 3 617.5 Intangible assets 237.7 276.7 276.7 o/w goodwill 128.7 166.6 166.6 o/w brands 98.6 98.6 98.6 Other intangible assets 10.4 11.5 11.5 Property. plant and equipment 12.6 11.
Slide 38: Balance Sheet (2/2)
BALANCE SHEET (2/2) 12/31/2013 12/31/2012 12/31//2012 In € millions restated published EQUITY 1 832.9 1 362.0 1 362.0 Equity attributable to Altarea SCA shareholders 1 151.3 1 023.7 1 023.7 Share capital 177.1 131.7 131.7 Other paid-in capital 437.0 481.6 481.6 Reserves 391.0 354.6 354.6 Income asso
Slide 39: Net Asset Value
NET ASSET VALUE GROUP NAV 12/31/2013 12/31/2012 Change/s In € millions Change €/share In € millions €/share hare Consolidated equity, Group share 1,151.3 99.3 1,023.7 93.8 Other unrealized capital gains 317.6 381.9 Restatement of financial instruments 71.5 177.1 Deferred tax on the balance sheet for