Act 2 Analyst Meeting 27 July 2016 1
Contents ■ Page 3 1. Highlights ■ Page 10 2. Portfolio ■ Page 26 3. Finance 2
Highlights July 2016 3
Main financial indicators EBITDA Margin Highlights Gross Rental Recurring CF EPRA Earnings Income Group Share 10.4 M € 68% +15% +11% +12% +60 bps 7.5 M € ANF Share Guidance confirmed Recurring Cash Flow, Group Share Pipeline Cost of debt Fair Value NNNAV/Share 14.9 M € +8% +63 M € -17 M € 26.2 € 2.7% EPRA Vacancy rate Portfolio value -50 bps Heritage -4% lfl change after 1.1 B € 1.24 € dividend LTV 45.5% Marseille Retail 4
Our pipeline has driven the increase of revenues and Recurring CF EPRA Earnings (adjusted) Revenues +11% +22% (2013 vs 2016) Disposal M € Printemps - Lyon M € Highlights 18,0 16,0 27,0 16,0 14,6 13,5 1,4 13,1 26,0 0,4 14,0 0,6 0,0 - 3,7 12,0 8,1 25,0 10,0 24,0 - 8,0 23,0 25,8 14,6 13,5 13,1 6,0 22,0 23,2 4,0 7,9 21,0 2,0 20,0 - 2013 2014 2015 FY 2016 Forecast Alstom – CDS Hotel B&B Areva Part Dieu Hotel B&B Vélo Banque France Hotel B&B Perpignan Lyon Lyon Marseille Lyon Bobigny 2014 2015 2016 Adecco TdO Nautilus BAF La Fabrique Hotel Bègles Hotel AC Vélo Hotel B&B Allar Adecco CDS Lyon Bordeaux Bordeaux Bordeaux Marseille Marseille Lyon Impact H1 2016 Revenues & CF 5 To be delivered in 2016
And new projects being added to current pipeline will fuel further growth Current New Park View* – Tête d’Or – Lyon Highlights 2017-2019 2019-2020 Building permit application filed 2018 2019 2019-2020 2019-2020 Armagnac Le Castel Park View Rive Neuve Development contract Bordeaux Marseille Lyon Marseille Offices + Hotel Offices Offices Offices signed (53 M € CPI) 97 M € 19 M € 53 M € 10 M € 22 236 m² Rive Neuve - Marseille Building permit obtained, free of all claims 3 641 m² 6 *Formerly known as Future Way - Adecco Tête d’Or
Active Asset Management throughout the entire portfolio Lettings Core: Lettings Heritage: Progress on new projects Implementing strategic plan Highlights 1) Quai 8.2 – Bordeaux 1) Marseille – Retail – Vieux-Port 5 000 m² (+ 800 m²) - Allianz King Jouet – 600 m² 9 years without break option Musée du Savon – 800 m² 126 rooms - B&B Signature in progress – 260 m² 12 years without break option 2) Marseille – Retail – Joliette 2) Ilot 34 – Marseille Copy Top – 120 m² 3 500 m² - MCM Signature in progress – 130 m² 1 100 m² - SNCM Official Receiver Deliveries Core: Disposals Heritage: Fueling growth Financing Core portfolio 1) 21 M € signed 1) 3 Hotels – ANF Immobilier Hotels TAT - Lyon heritage 26 M € - 331 rooms - +1,9 M € income 7 100 m² - Mixed use 2) Banque de France - Lyon 20 M € - 2 500 m² retail - +1,5 M € income 2) 13 M € Presale agreement 3) Adely – Adecco – Lyon to come in Q3 2-3-4 République – Lyon heritage 34 M € - 13 000 m² offices - +2,5 M € income 2 000 m² - Retail 7
Active financial structuring lowering our cost of debt 30 June 2015 30 June 2016 Highlights Caps 10% Caps 40% Swaps 60% Swaps 90% Hedging Hedging 72% 86% Cost of debt H1 Cost of debt H1 3.2% 2.7% (-50bps) 8
Adjustments to EPRA Triple Net NAV through 3 major effects € /share 30,0 29,5 29,0 -1.2 V 28,5 Highlights NA 28,0 -1.0 29,6 -0.4 27,5 +0.2 -0.2 -0.0 28,4 27,0 27,8 27,4 27,4 26,5 26,0 31/12/2015 Dividend 31/12/2015 Fair Value Fair Value Fair Value Fa Other Cash Flow 30/06/2016 29,0 (Cash) restated Change Change Change 28,5 Retail Core Core - Ilot Marseille 34 28,0 -1.2 27,5 V 27,0 NNNA -1.0 26,5 +0.2 -0.2 28,5 -0.5 26,0 +0.4 -0.0 27,2 25,5 26,3 26,2 25,0 25,7 24,5 24,0 31/12/2015 Dividend 31/12/2015 Fair Value Fair Value Fair Value Fair Value Other Cash Flow 30/06/2016 (Cash) restated Change Change Change Change Retail Core Core - Ilot Hedging Marseille 34 Instruments Decline due to three major effects: 1) Dividend over Cash Flow: mandatory annual dividend higher than half-year Cash Flow 2) Mark To Market adjustment regarding hedging instruments 3) Negative adjustments from retail exposure in Marseille 9
Portfolio July 2016 10
Distinct portfolios, distinct behaviors Heritage Core 44% OF GROSS ASSET VALUE* 56% OF GROSS ASSET VALUE* Portfolio Haussmann-style, stable and diversified New, refurbished Shorter lease term Longer lease term Lower yield 2.9% \ Higher vacancy 18% Higher yield 6.0% \ Lower vacancy 3% 130,000 sqm* 180,000 sqm* *Values as per 30 June 2016 , areas including final areas of launched developments, excluding hotels and parking lots 11
Portfolio breakdown, value and rental income Portfolio Value - EOP H1 2015 Portfolio Value - EOP H1 2016 Heritage Core 44% 49% Core Heritage 51% 56% Portfolio Rental income – H1 2015 Rental income – H1 2016 Other Other 3% 4% 84% Commercial Resid Resid Real Estate 13% 81% 15% Commercial Hotels Real Estate Offices 12% Hotels 45% 11% Offices 55% Retail 17% Retail 25% 12
Core assets (56% Portfolio Value) Part I Core Assets Portfolio 56% 13
H1 Deliveries – 45 M € high yield investments delivered i.e. 45 millions d’investissements, 2 500 m² de commerces + 331 chambres d’hôtels Portfolio Banque de France - Lyon 3 Hotels – Marseille & Bobigny Retail – 2 500 m² Hotel – total 331 rooms 100% let to Nike & Maxi Bazar 100% let to B&B & AC Marriott 1,5 M € rental income 1,9 M € rental income 19 M € investment 26 M € investment 14
Adecco – A structured project showcasing ANF Immobilier’s know-how Park View – Tête d’Or Adely – Carré de Soie Lyon Lyon 9 000 m² let to Adecco until 2016 19 M € initial investment 13 100 m² let to Adecco 2,5 M € rental income Development of 22 236 m² 34 M € investment 53 M € additional investment Portfolio 5,0 M € potential rental income To be delivered in Q3 2016 To be delivered by 2019-2021 15
And finally Quai 8.2: Our Flagship Project in Bordeaux - Euratlantique Developer 43 000 m² mixed use Launch by September 2016 Delivery by 2018-2019 Partnership with Vinci (50%) Portfolio 97 M € Investment 29 500 m² offices 2 100 m² retail and a 3 000 m² hotel Investor 10 000 m² let to Orange and Allianz (signed in June 2016) hotel let to B&B Partnership 65% ANF Immobilier 35% Foncière des Régions 16
Project launch – Le Castel, 6 000 m² offices next to Euromed district Portfolio Offices 6 000 m² to be delivered by 2019 Developer – Eiffage Forward purchase agreement signed H1 2016 1,4 M € potential rental income 20 M € investment 17
Heritage assets (44% Portfolio Value) Part II Heritage Assets Portfolio 44% 18
Adverse economic context for high street retail in France Vacancy rate evolution High street retail in France 9,5% 10,0% Average vacancy rate for high street retail in France 8,5% 9,0% 7,8% has steadily increased by c.a. 1% per year since 2012 8,0% 7,2% 7,0% Stable average vacancy rate for major cities 6,0% 5,0% exceeding 500 000 inhabitants 4,0% 3,0% Marseille is the exception: average vacancy rate 2,0% Portfolio comprised between 10% and 15% 1,0% 0,0% 2012 2013 2014 2015 The city of Marseille lacks the following factors: Market Imported Size Income Offer/Supply Captive Disposable Market Income 19 Etude Procos 2016
Combined with a local oversupply has led to a fair value adjustment Temporary oversupply Terrasses du Port – 61 000 m² (2014) Centre Bourse – 6 000 m² (2015) Docks – 17 000 m² (2015) Voûtes – 7 500 m² (2015) Prado – 42 000 m² (2017) Portfolio Has led to a challenging situation Estimated decrease of retailers’ turnover by 20%-30% within a year 1 450 m² lease contracts renegotiated in 2015-2016 300 m² vacated in 2016 and up to 700 m² more in 2017 by clothing retailers Adjustment of Estimated Rental Value of -6% between EOP 2015 and EOP H1 2016 Vieux-Port segment: -8% Middle segment: -6% Joliette segment: -3% Generating a decrease of Marseille retail market value by -7% (-15 M € ) 20
But many positive factors surround Rue de la République Euromed Terrasses du Port Business district Rue de la République Docks Expanding Voûtes Portfolio MUCEM Museum Panier district Touristic area Centre Bourse Vieux-Port Touristic area Taking advantage of A newly established business district 21 A booming tourism industry
Our retail strategy for Marseille Differentiate our offer from new competitors (Terrasses du Port, Centre Bourse) Redefine Marketability Emphasize Rue de la République's main asset, a location benefiting Marseille’s new identity Portfolio Vieux Port – « Destination », tourism fitting Vieux-Port and Two distinct Panier districts, leisure aimed at locals strategies for two distinct Joliette – Services and catering aligned with the newly segments successful and established Euromed business district 22
Promising first results Euromed Business district Expanding Copy Top 120 m² Portfolio 130 m² Musée du Savon 800 m² King Jouet 600 m² First impacts in a few months 2 200 m² let Vieux-Port Touristic area 23 260 m²
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