intu properties plc Site visit to the North East, November 2016
Welcome David Fischel, Chief Executive
Itinerary 11:15 Presentation Kate Grant – Regional Director, North Roger Binks – Customer Experience Director Q&A Tour of intu Metrocentre 13:20 Lunch Tour of intu Eldon Square 15:30 Coach transfer/walk to Newcastle central station 15:59-18:50 Train from Newcastle to London Kings Cross This presentation contains “forward-looking statements” regarding the belief or current expectations of intu properties plc, its Directors and other members of its senior management about intu properties plc’s businesses, financial performance and results of operations. These forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of intu properties plc and are difficult to predict, that may cause actual results, performance or developments to differ materially from any future results, performance or developments expressed or implied by the forward-looking statements. These forward- looking statements speak only as at the date of this presentation. Except as required by applicable law, intu properties plc makes no representation or warranty in relation to them and expressly disclaims any obligation to update or revise any forward-looking statements contained herein to reflect any change in intu properties plc’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. 3
Maximising customer relationships to drive growth Kate Grant, Regional Director, North Roger Binks, Customer Experience Director
The intu difference Working together Asset intu Digital management intu Experiences Aim – to monetise the brand 5
Customer relationship management strategy Embracing omni-channel world Sector specialists • CACI research • Changing Omni – shopper profile: retailing • understanding our customers mindset 6
Brand partnerships Leisure example Promoting through intu Experiences Spanish connection intu Lakeside leisure letting more centres to follow…… 7
Brand partnerships Retail examples Consumer Focus 70% of car purchase decisions are made by women Miniaturisation Adapting to changing retailer models Increasing use of virtual reality technology 8
Key consumer brands Developing brand relationships 9
Making the brand count Leasing models – pricing & flexibility £ Monetise the intu brand 10
Food for thought “West Edmonton Mall is the Mt. Everest of indoor entertainment, shopping, and attractions in North America – a place you have to visit at least once in your lifetime. Part adventure park and entertainment complex, part shopping and dining destination, the mall spans the equivalent of 48 city blocks” 11
Driving growth through our brand Technology, digital and customer experience
Technical journey Connected way of working – centre technology 2012 2016 2020 Corporate Technology Roadmap Core and Wifi Leveraged Intelligent installed network reactive plug and play buildings 13
Technical changes driving innovation Core – intu’s platform of the future 14
intu.co.uk Where are we now? 2013 2014 2015 2016 2017 intu.co.uk Pivoted Site traffic 2017 new Fully launched as a model to grew at technology responsive transactional affiliate 30% YOY & group site marketplace publisher holistic experience 480 retailer retailers strategy live selling online 15
Integrated booking platform Multichannel appointment scheduling 16
Turning data into actionable insight 17
Our brand journey Towards a hospitality brand <2013 2018 - 20 2013 2014 - 15 2016 - 18 Individually Launched and Started measuring Acting national & Build brand managed merchandised the the brand building emotional credentials brands intu brand connections with towards a loved our guests and understood hospitality brand 18
Developing our Christmas TV ad 2016 Christmas TV ad 19
Developing our Christmas TV ad The making of the Christmas TV ad 20
North East England
The North East Strong regional economy population growth +7.5% 2005-2014 average annual earnings £27.0k UK average £27.6k house prices lower than 47% UK average 100,000 students Source: Invest Newcastle (NGI) 22
intu Metrocentre
intu Metrocentre History and recent activity 2007 – retail park acquired 2012 – MetrOasis 2009/10 – built Qube cinema extension 1986 – centre 2016 – Qube opened extension 1995 – centre acquired by intu 2014 – 2007 – 40% sold to Platinum mall GIC refurbished 2012 – Federation Brewery site acquired 24
intu Metrocentre Qube catering extension “In my eyes, the relocation to the Qube is the best decision that TRG (The Restaurant Group) have ever made. Put it this way, we were around 30th in our group and since our £17m relocation and new design we are 2nd only to total project cost the huge Leicester Square site. The numbers speak for themselves.” incremental rental £1.4m Gen ener eral Manager er, C CHIQUITO, in intu Met etrocen entre income 8.2% initial yield on cost 36% profit on cost 25
intu Metrocentre BHS let to Next – new 85,000 sq ft flagship Ground floor 12 small units removed (6 relocations to other voids) Increase on current rents Improved tenant covenant First floor Existing Next unit under offer 26
intu Eldon Square
intu Eldon Square The heart of Newcastle city centre Mall refreshment St. Andrew’s extension Grey’s Quarter 1980 1990 2000 2010 1976 2010 2016 Grey’s Quarter centre opened St Andrew’s Way restaurants extension opened opened 2015 centre refurbished 28
intu Eldon Square Grey’s Quarter total project cost £15m (intu share) £1.2m incremental rental income (intu share) 7.7% initial yield on cost 29
Appendices
intu Metrocentre Key metrics 33% 21 million of customers visit weekly annual footfall 2 hrs 5 mins 76% average dwell time of shoppers are female 9,250 2.6 million free car parking spaces total population in catchment 342 store s 72% of customers visit every month £274.8 million 57% ABC1 total GVA* social grade Source: CACI peak survey November 2015 *Gross Value Added (GVA) is a measure of the value of the goods and services produced in the economy. 32
intu Metrocentre Before and after Before After 33
intu Eldon Square Key metrics 34 million 58% annual footfall of customers visit weekly 77% 1 hr 40 mins of shoppers are female average dwell time 1.8 million 61% ABC1 total population in catchment social grade 86% 140 store s of customers visit every month £273.4 million total GVA* Source: CACI peak survey November 2015 *Gross Value Added (GVA) is a measure of the value of the goods and services produced in the economy. 34
intu Eldon Square Before and after Before After 35
The North East intu owns the strongest destinations Source: CACI residential comparison market goods potential (£m). The amount that residents arriving at the centre have to spend on comparison goods each year. 36
Food & Beverage CBRE research: Eating out is an essential luxury “A strong food and beverage offer aligns with the view that shopping is of people think F&B a leisure activity” 2/3rds important in where to visit “Food and beverage will become increasingly important as a footfall and revenue driver for shopping stay longer if they eat or centres” 47% drink say quality of food is 75% important on deciding where to eat Source: CBRE: Food & beverage in a shopping centre (2015) 37
Food & Beverage CBRE research: The future of F&B in shopping centres The number of people that say they go to a shopping centre just to eat or drink will increase Any centre that allocates less than 10% of GLA to food and beverage is not sustainable. We see 25% becoming more normal in many centres New restaurant and dining brands will launch to market through shopping centres Tailoring the offer becomes even more important There is still a lot of money to be made from a refreshed food court Source: CBRE: Food & beverage in a shopping centre (2015) 38
Food & Beverage intu’s insight 166 mins dwell time catering users Non catering users 92 mins retail spend by catering users £168m Non catering users £129m retail conversion catering 95% users Non catering users 88% growth in catering spend +5% June 16 vs June 15 Source: CACI November 2015 exit surveys 39
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