Icade Sfaf 02/21/2013 VA
Transcript of Icade Sfaf 02/21/2013 VA
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R e s u l t s
2 1 F e b r u a r y 2 0 1 3
A n n u a l
The T3 tram line arrives at Parc du Pont de Flandre (Paris 19th)
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Disclaimer
This presentation is not an offer or a request for an offer to sell or exchange securities, or a recommendation to subscribe, buy or sell Icade securities. Distribution of this document may be limited in certain countries by legislation or regulations.
As a result, any person who comes into possession of this document is required to familiarise themselves and comply with such restrictions. To the extent permitted by the applicable laws, Icade excludes all liability and makes no representation regarding the violation of any such restrictions by any person whatsoever.
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1 Strengths of the Icade business model
Optimising the asset portfolio
Matching the portfolio with demand
Strengthening the financial position
Managing risk
2 Financial results
3 Opportunities and strengths
4 Appendices
C o n t e n t s
Parc du Millénaire, Paris 19th
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Solid key indicators
Significant improvement in EBITDA (+8%) LTV under control
Reduction in NAV in 2012 (-3%) Strong growth in net current cash flow (+13%)
40.0% 39.5% 39.8%
Dec. 2011 June 2012 Dec. 2012
83.7 € / action
80.8 € / action
80.7 € / action
4,313 M€ 4,189 M€ 4,190 M€
Dec. 2011 June 2012 Dec. 2012
355 M€ 385 M€
Dec. 2011 Dec. 2012
4.32 € / action
4.86 € / action
223 M€ 251 M€
Dec. 2011 Dec. 2012
► Net current cash flow rose by 12.5% due to firm growth in EBITDA, particularly in Commercial Property
► A solid financial position ► Taking into account assets covered by a promise of sale at 31
December 2012, the adjusted LTV was 38.4%
► EPRA triple-net NAV was down 2.8% relative to 31 December 2011, because of lower asset values in Commercial Property (due in particular to the value adjustment relating to tour EQHO) and the lower mark-to-market value of hedging instruments
► EBITDA rose by 8%, mainly due to efficient rental management, acquisitions and a reduction in intra-group transactions between the Development and Property Investment divisions
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1 Strengths of the Icade business model
Optimising the asset portfolio
Matching the portfolio with demand
Strengthening the financial position
Managing risk
2 Financial results
3 Opportunities and strengths
4 Appendices
C o n t e n t s
Parc du Millénaire, Paris 19th
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Strengths of the Icade business model
Streamlining assets
► 90% of the portfolio now consists of strategic and alternative assets
► Ongoing move to focus on commercial property in 2013 through the planned combination
with Silic
► €547m of investment in 2012 in strategic activities (offices, business parks) and alternative activities
(healthcare)
► €350m of disposals, either completed or covered by a promise of sale, involving non-strategic
or mature assets (residential, warehouses, Germany)
Matching the portfolio with demand
► Assets located in the main business districts of the Paris region, benefiting from recent
or upcoming development of public transport, strengthened by the combination with Silic
► Recently built properties, meeting the toughest environmental standards
► Success in terms of the main rental conditions, stabilising the occupancy rate at around 95%
Strengthening the financial position
► New financing (club deal, mortgage, fundraising for Icade Santé) resulting in a more even debt
maturity schedule and preparing for the integration of Silic
► Sound financial position
Managing risk
► Specific approach to the development market
► Major potential for increasing rents on existing properties and secure projects
► Firm grip on the pipeline, allowing major flexibility in initiating operations
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Optimising the asset portfolio Breakdown of the portfolio by strategic sector between 2009 and 2012
Ongoing move to focus on commercial property in 2012
(1) Assuming 100% ownership
Total portfolio value: €6,850m
at 31 December 2012
2009 2012
Shopping centres
€281m
Healthcare
€661m
Offices, France
€1,162m
Business parks
€1,289m
Offices,
Germany,
Warehouses,
Residential
€2,411m
Alternative 16%
Strategic 42%
Non-strategic 42%
22%
20%
42%
5%
11%
Total portfolio value: €5,804m
at 31 December 2009
Alternative 32% Non-strategic 10%
Strategic 58%
Shopping centres
€442m
Healthcare (1)
€1,725m
Offices, France
€2,426m Business parks
€1,570m
Offices,
Germany,
Warehouses,
Residential
€687m
23%
35%
10%
25%
7%
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Optimising the asset portfolio Investments and disposals
Investments: €557m
Warehouses, offices and retail property ► Disposal of 36,400 m2 of warehouses and 7,300 m2 of offices
and retail properties on a joint-ownership basis
► Disposal in December 2012 of an 8,400 m² office building
at 7-9 avenue de Messine, Paris 8th
► Promise of sale signed in January 2013 for a portfolio of 11
logistics platforms, with total space of 380,000 m2 for €145m
Offices, Germany ► Disposal of two office buildings in Berlin and Hamburg
and land for €57m
► Promise of sale on buildings in Berlin and Frankfurt
(19,400 m²) and land in Germany
Residential ► Sale of an entire development of 495 homes in Epinay-sur-Seine
in June 2012 for €33m
► Promise of sale signed in January 2013 for the block disposal
of 849 homes in Sarcelles (95)
Other disposals ► Disposal in March 2012 of Icade Résidences Services, a
company specialising in managing student residences, for €24.2m
► Talks underway to sell the engineering business of the
Development division in the first quarter of 2013 (Arcoba, Gestec,
Setrhi-Sétae) and to sell Suretis, which specialises in security
and remote surveillance services
Disposals: €350m (capital gains: €81m)
Tour EQHO (La Défense)
Le Beauvaisis (Paris 19th)
Healthcare
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Active portfolio rotation policy, allowing the portfolio to be streamlined
Completion of 79,200 m² of usable space
scheduled in mid-2013
First high-rise building with HQE® Rénovation and
BREEAM®-Very Good / BBC Rénovation Certification
Completion of 12,000 m² in early 2012, including
3,350 m² let to ARD
First Paris office building with both HQE® and BBC
Rénovation certification
Acquisition of 11 clinics (2,100 beds) managed
by top-tier operators for €310m
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Front Populaire metro station (extension of the 12 line) in the Parc des Portes de Paris (Saint-Denis)
C o n t e n t s 1 Strengths of the Icade business model
Optimising the asset portfolio
Matching the portfolio with demand
Strengthening the financial position
Managing risk
2 Financial results
3 Opportunities and strengths
4 Appendices
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Nanterre
Courbevoie
Puteaux
8
12
15
19
1 2
3
4
5 6
7
9 10
11
13 14
16
17 18
20
Maison-Alfort
Villejuif
Issy-les-Moulineaux
Boulogne
Neuilly
Nanterre
St Denis
Rueil-Malmaison
>€100m €50m to €100m €0m to €50m
Courcouronnes Evry
Aubervilliers
Offices Business parks
Paris 19th
Aubervilliers
St Denis
BUSINESS PARKS
La Défense
Matching the portfolio with demand Location of business parks and offices in the Paris region
Assets located in the main business districts of the Paris region, benefiting from recent or upcoming transport developments, strengthened
by the combination with Silic
Le M
illé
nair
e
sh
op
pin
g c
en
tre
A
uberv
illie
rs
Le M
illé
nair
e
Paris 1
9th
M
etr
op
oli
tan
V
ille
juif
To
ur
PB
5
La D
éfe
nse
Cry
sta
l P
ark
N
euill
y
Hau
ssm
an
n
Paris 8
th
LIN
K
Paris 1
5th
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To
ur
EQ
HO
La D
éfe
nse
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1. North-East Paris
2. ZAC Claude Bernard
3. Gare des Mines-Fillettes
OTHER PROJECTS
Yesterday
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Matching the portfolio with demand
Focus on business parks
M2 M1
M5
M6
M4 M3
SAINT
DENIS AUBERVILLIERS
PARIS
Stops on the 239 and 65 bus lines
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Today
1. North-East Paris
2. ZAC Claude Bernard
3. Gare des Mines-Fillettes
OTHER PROJECTS
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Matching the portfolio with demand
Focus on business parks
M2 M1
M5
M6
M4 M3
SAINT
DENIS AUBERVILLIERS
PARIS
Stops on the 239 and 65 bus lines
Front Populaire station
(phase 1) opened on 18 Dec 2012
Tram line
Opened on 15 Dec 2012
3 T
M 12 Metro station
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Matching the portfolio with demand Focus on business parks
1. North-East Paris
2. ZAC Claude Bernard
3. Gare des Mines-Fillettes
OTHER PROJECTS
M2 M1
M5
M6
M4 M3
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SAINT
DENIS
PARIS
AUBERVILLIERS
Tomorrow
An area very well served by public transport…
Stops on the 239 and 65 bus lines
Front Populaire station
(phase 1) opened on 15 Dec 2012
Tram line
Opened on 15 Dec 2012
M 12
3 T
Planned tram line 8 T
Extension of the RER E line
(Rosa Parks station) E
Ilot E Metro station
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1,598
2,023
4,241
4,611
1,621
2,130
4,417
4,853
Parc du Mauvin Parc des Portes de Paris Parc du Pont de Flandre Parc du Millénaire
Value at 31 December 2010 Value at 31 December 2012
152 172
295 292
162 178
308 328
Rent at 31 December 2010 Rent at 31 December 2012
Average values and rents by park (€ / m²)
+5.3%
+4.1% +5.2%
+1.4%
... with a significant impact on rents and values
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Matching the portfolio with demand
Focus on business parks
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Matching the portfolio with demand
Proportion of strategic portfolio
in the Paris region: 99%
Portfolio mostly consisting of offices and business parks, located mainly in the most dynamic
districts within the Paris region
Total value of the commercial portfolio:
€6,593m at 31 December 2012
Take-up in the main districts within the Paris region (thousands of m²)
428
247
149
246
208
397
264
117
226
219
345
260
163
261
235
Paris CBD
Paris otherbusiness districts
La Défense
Western Crescent
Northern sector
2010 2011 2012
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-6.9%
+1.7%
+3.0%
+2.0%
+4.2%
% : average annual change
(1) Levallois, Neuilly, Boulogne-Billancourt and Issy-les-Moulineaux
(2) Saint-Denis, Saint-Ouen, Clichy, Aubervilliers and Paris 19th
(1)
(2)
Source: MBE Conseil / Immostat
11%
Western Crescent
€1,007m
Inner suburbs
€1,408m
Paris
€1,069m
La Défense
€707m
Germany
€233m
French provinces
€1,811m
22%
15%
16%
27%
4%
Outer suburbs
€358m 5%
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Matching the portfolio with demand Asset quality
Low average age of portfolio assets:
assets less than 10 years old make up 67%
of the portfolio by value
HQE® certified properties in use account for
21% (excluding EQHO, due for completion
in 2013)
All Icade developments have at least
HQE® certification (Millénaire 3, Veolia,
Ilot E, EQHO etc.)
Properties that are efficient for tenants
► Limited charges (low energy consumption etc.)
► Optimised occupancy (flexible spaces with
extension possibilities)
216,076
298,290 298,290
358,970
428,810
2012 2013e 2014e 2015e 2016e
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Strong growth in properties with environmental certification
Office properties with HQE certification®
(total space in m²)
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Matching the portfolio with demand Operational indicators
Healthy operational indicators providing good visibility on future cash flows
Slight rise in occupancy rates
► Financial occupancy rate of 94.8% in December
2012 (94.7% in December 2011)
► Maintenance of a voluntary vacancy rate and shorter
lease terms in business parks so as to give more
flexibility in asset management terms
Financial occupancy rate Remaining committed lease term (years)
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Higher remaining committed lease term
► Leases renewed in 2012 with committed terms of 5.6 years
Rents broadly in line with market rental values
6.2 6.0 6.2 6.0 6.4
5.2 5.2 4.9 4.7
5.0
Dec 10 June 11 Dec 11 June 12 Dec 12
Commercial Property
Offices and business parks portfolio
91.0%
92.5%
94.7%
93.3%
94.8%
88.7%
91.0%
93.4%
90.8%
92.6%
déc-10 June 11 déc-11 June 12 Dec 12
Commercial Property
Offices and business parks portfolio
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H2O, Rueil-Malmaison
H2O building in Rueil-Malmaison fully let (5,300 m2 let to Géostock and Kia Motors)
PB5 (La Défense)
Almost all rentable space now let (18,300 m2) mainly to 2 CAC 40 companies, effective 1st January 2013
Remaining space to let: 450 m2
Immeuble 521 (Parc des Portes de Paris, Aubervilliers)
Office space let to Navaho (3,100 m2), Endemol France (6,900 m2) and CNAV (700 m2)
Remaining space to let: 2,100 m2
Immeuble 026 (Parc du Pont de Flandre, Paris 19th)
2,800 m2 of office space let to Maif
Remaining space to let: 1,800 m2
Matching the portfolio with demand Main lettings in the strategic portfolio
The main challenges identified in relation to lettings have been successfully met, and all buildings are now partly or fully occupied
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Beauvaisis (Parc du Pont de Flandre, Paris 19th)
Completed in early 2012 (12,000 m2) / 3,350 m² let to ARD
Remaining space to let: 8,650 m2
Factory (Boulogne, 92)
43% of space let in 2012, with tenants including BeinSport (4,600 m2)
Remaining space to let: 7,900 m2
Recent leases ("green leases")
20 green leases signed so far, representing 106,000 m² (including 18,900 m² let to Pierre & Vacances)
in the Parc du Pont de Flandre and to Ingenico in the Link complex (10,300 m²)
Millénaire 5 (Parc du Millénaire, Aubervilliers, 93)
39% of space let in February 2012
Remaining space to let: 1,500 m² (Icade share)
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C o n t e n t s 1 Strengths of the Icade business model
Optimising the asset portfolio
Matching the portfolio with demand
Strengthening the financial position
Managing risk
2 Financial results
3 Opportunities and strengths
4 Appendices
Le Beauvaisis (Parc du Pont de Flandre, Paris 19th)
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Strengthening the financial position
Improved funding through innovative solutions
► €1.5bn club deal to prepare for the integration of Silic, resulting in a smoother maturity
schedule
► €200m mortgage loan on the Parc du Pont de Flandre
► €360m capital increase valued at NAV to finance the development of Icade Santé
LTV below 40%
Longer average debt maturity
Around €900m of undrawn facilities, covering two years of debt repayments
(capital + interest)
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Pushed Slab (Paris 13th)
C o n t e n t s 1 Strengths of the Icade business model
Optimising the asset portfolio
Matching the portfolio with demand
Strengthening the financial position
Managing risk
2 Financial results
3 Opportunities and strengths
4 Appendices
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Managing risk A specific approach to the development market
Residential ► Development work only launched after a sufficient level of reservations has been achieved
► Land options: land not bought until the development can be started, i.e. until pre-marketing can
commence
► Increasing proportion of first-time buyers and institutional investors
Commercial ► Very limited exposure to speculative developments (around 13% of space under development)
► Business levels evened out by more recurrent public-sector developments, which carry no marketing risk
Development accounts for only 5.9% of capital employed at Icade
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Institutional
investors
First-time buyers
Breakdown of customers Breakdown of investors
by tax regime in 2012
Private
investors
32.5% 17.3%
32.2% 40.8%
28.5% 46.5%
29.5% 34.2%
39.0% 36.2% 38.3% 25.0%
2009 2010 2011 2012
LMP / LMNP
4%
Other tax relief
6%
Scellier
90%
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Managing risk Residential development - key indicators
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Housing reservations - Value (€m)
620
971 1 015 1 132
822
0
200
400
600
800
1000
1200
2008 2009 2010 2011 2012
(1) Excluding PNE housing, the change between 2011 and 2012 was -14% by value
(2) Figures take account of the re-inclusion of housing units in the PNE project
(3) Value of unsold homes at 31 December 2012: €21m
Backlog (2) - €m
519 650
811
1 028 1 082
0
200
400
600
800
1000
1200
2008 2009 2010 2011 2012
Disposal rate of marketable stock
5.3%
9.2%
13.4% 12.7%
7.8%
0%
5%
10%
15%
2008 2009 2010 2011 2012
Unsold homes - Volume (units)
244 264
218
118 117
0
50
100
150
200
250
300
2008 2009 2010 2011 2012
-27.4% +5.2%
-0.8%
-38.6%
Most residential developments have NF Logement and BBC certification
(1) (1)
(3)
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Managing risk Commercial and public-sector development
Commercial and public-sector development revenues (€m) Intragroup revenues (€m)
Commercial property development: limited exposure to “speculative” developments,
with most current developments secured by investors or tenants
► Under development: potential revenue of €381m from 312,500 m²
► Under preparation: potential revenue of €1,029m from 578,600 m²
Public-sector property development: resilient business with no rental risk
► Under development: €124m from 111,500 m²
► Under preparation: 87,200m²
Most projects have HQE® or equivalent certification
0
100
200
300
400
2010 2011 2012
PM, engineering and other
Commercial and retail
Public and healthcare
379 364 409 73
66
14
0
10
20
30
40
50
60
70
80
2010 2011 2012
Controlled exposure to market risk: limited risk given the special characteristics of the Icade model
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(1) PNE housing business transferred to Residential Development and separation of the PNE Refurbishment business
(1) (1)
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Additional costs in 2012 incurred to strengthen the existing
structure, which will contain all new elements (housing,
offices, shops and public amenities): €7m impact on
EBITDA and €18m impact on operating profit (1)
Disposal of Icade's stake in the SAS PNE refurbishment
company to CDC
In future, Icade will concentrate on its role as residential
and commercial developer in this project
► 907 homes built by Icade, with 80% reserved to date
► 27,600 m² of offices jointly developed with BNP Paribas Immobilier
(investor for the whole development)
► 15,400 m² of business space acquired by RIVP
Refurbishment risk related to the PNE project has now been isolated. In future, Icade will concentrate on the development part of this very large
project, which will have a major impact on its region
Str
engt
hs o
f the
Icad
e bu
sine
ss m
odel
Managing risk
North-East Paris development
(1) Before stripping out internal margins
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26
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ual R
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ts
Managing risk Focus on the pipeline 2013-2017
Investment at the cutting edge of sustainable development
Total commercial property investment
(identified and committed) ~ €541m
Main investments Space Completion Total
investment (1)
Investment
2013-2017 Gross
rent
Yield
Tour EQHO
HQE® Rénovation / BBC
Rénovation
BREEAM®-Very Good
79,200 m2 Q2 2013 €746m €110m ~€42m 6.5%(2)
Work in
progress
Pre-marketing
in progress
Millénaire 3 HQE® / BBC /
BREEAM®-Excellent
32,000 m2 Q2 2015
€388m €353m ~ €28m 7.2%
Let to the
ministry
of Justice with
option to buy
Veolia project HQE®, BREEAM®-Very
Good, RT2012, BBC
45,000 m2 Q2 2016 Let to Veolia
Environnement
Clinics: extensions /
redevelopment €90m €78m ~ €6m 7.1% Let
Total €541m
Str
engt
hs o
f the
Icad
e bu
sine
ss m
odel
(1) Total estimated investment, including duties and fees (including land charges for business park developments, financial costs relating to works and, if applicable, rent-free periods and user work) For business parks, the gross value of land and buildings to be demolished for the construction of projects is included in the production costs for new developments
(2) After taking into account the €93m impairment provision (at end-2011, provision of €36m)
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Architect: Hubert & Roy Architectes
Height: 139m
Number of floors: Ground+40; 4 basement
levels
Floor space: 79,200m² gross rentable area
Car park: 1,100 spaces
Employee capacity: up to 5,922 workstations
(9.2 m² net usable space / workstation)
Str
engt
hs o
f the
Icad
e bu
sine
ss m
odel
Managing risk
Tour EQHO
A tower transformed, a renaissance, a new product
► A new luminous facade, highly contemporary, making a real architectural statement
► Modification of access and redesign of lobbies
► Total replacement of technical equipment
► Diversification and innovation in catering
► Exceptional services
► Increased flexibility: multi-tenant potential
Strong visibility ► Standing on the La Défense ring road
► Located just off the La Défense plaza, with direct connections
to Courbevoie town centre and its shops, as well as to the shopping centres
of La Défense
Very high standards ► A breathable triple skin
► Construction work certification: a high proportion (95%) of office space
with outside view
► Excellent noise insulation
► Environmental certification: HQE® Rénovation, and BREEAM®-Very Good /
BBC Rénovation certification
A major source of cash flow for Icade
► Impact of IBM's departure in 2009 offset by the arrival of Compagnie
la Lucette in 2010
► Potential annual rent of around €42m
► Limited vacancy cost: maximum annual post-completion impact of €8m
(€3m in 2012, i.e. additional €5m over a full-year)
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2012
Ann
ual R
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ts
M2 M1
M5
M6
M4 M3
SAINT
DENIS
PARIS
AUBERVILLIERS
Centre commercial
Le millénaire
Signed agreements showing the appeal of the area
and supporting its appraisal value
Managing risk Business parks: secured projects
Veolia Environnement will relocate its head
office in 2016, bringing together more than
2,000 staff
► Off-plan lease signed in January 2013 for
45,000 m² of office space (lease term: 9 years /
rent: €16.5m)
► Featuring the latest environmental and energy-
performance technologies (HQE® and
BREEAM®-Very Good certification)
In 2015, the ministry of Justice will bring
together 1,600 central government staff,
currently spread out over several sites
within Paris
► December 2011: signature of heads of agreement
with the government for a lease plus option to buy
relating to Millénaire 3 (32,000 m²) - lease term:
12 years / rent: €11.6m
► Start of work: early 2013
► Expected completion: April 2015
► HQE® and BREEAM®-Excellent certification
BBC certification
Str
engt
hs o
f the
Icad
e bu
sine
ss m
odel
Architecte : Dietmar Feichtinger Architecte : Cabinet KPF
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2012
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ual R
esul
ts
Millénaire 4 Ilôt E
Space: 24,800 m²
Rent: €8.9m (€350 per m² of office space)
Cost: €117m (including incentive measures and land
cost)
Estimated yield to cost: 7.6%
Completion: 24 months after launch decision
Building permit obtained and cleared
Environmental certifications: HQE®, BREEAM®, BBC,
RT 2012
Space: 28,300 m²
Rent: €9.1m (€300 per m² of office space)
Cost: €110m (including incentive measures and land
cost)
Estimated yield to cost: 8.3%
Expected completion: 30 months after launch decision
Building permit obtained and cleared
Innovative building - wooden structure and façades
Managing risk Business parks: projects under control
Str
engt
hs o
f the
Icad
e bu
sine
ss m
odel
Environmental certifications: HQE®,
BREEAM®-Excellent, BBC, RT 2012
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2012
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ual R
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Managing risk Potential rent
Potential for increased rent before indexation (in €m) Commercial Property division (before integration of Silic)
382 404
463
(13)
+ 12
+ 17 + 6
+ 21
+ 42
(22)
+ 18
Potential rental growth of around 20% within 4 or 5 years
Str
engt
hs o
f the
Icad
e bu
sine
ss m
odel
IFRS rental income
2012
Non-strategic disposal (covered
by promise of sale)
Millénaire 3 (completion:
2015)
Veolia project
(completion: 2016)
Clinics: extensions /
redevelopment
Secure rent
Potential rent (vacancies in
buildings in use)
EQHO (completion:
2013)
Disposals of remaining non-strategic assets
Other projects identified but
not yet started (PDM4, Ilôt E)
Potential rent
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C o n t e n t s 1 Strengths of the Icade business model
2 Financial results
3 Opportunities and strengths
4 Appendices
Millénaire 3 and 4 (Paris 19th)
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Property Investment division Income statement
Substantial growth in rental income from the Property Investment division, resulting from the shift towards commercial property
(1) 1 January 2012: transfer of Healthcare assets not owned by Icade Santé (mainly the Levallois building let to the ministry of the Interior) to Offices, France
To ensure comparability, figures at 31 December 2011 have been adjusted to reflect this new classification
(2) After elimination of business-line intra-group items
Offices,
France (1)
Business parks Total
Strategic Shopping centres Healthcare (1) Total
Alternative
Non-strategic
portfolio TOTAL (2)
2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012
Rental income 118 127 96 95 214 221 22 25 62 91 84 116 64 59 362 397
Net rental
income 106 118 88 81 194 199 19 22 61 91 80 112 42 42 317 354
RENTAL
MARGIN
90% 93% 91% 86% 91% 90% 85% 87% 99% 99% 95% 96% 66% 72% 88% 89%
(Net rent /
rental income)
EBITDA 96 107 82 73 179 180 17 20 56 85 73 106 36 38 288 323
Operating
profit 50 16 44 40 94 56 5 6 29 43 34 49 48 33 176 138
Fin
anci
al r
esul
ts
€m
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2012
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ts
Residential(1) Commercial(1) PNE refurbishment (1) TOTAL (2)
Change
(%)
2011 2012 2011 2012 2011 2012 2011 2012
Revenue 741 670 364 409 10 16 1,106 1,071 -3%
EBITDA 56 52 25 20 1 -7 82 69 -16%
EBITDA margin (EBITDA/revenue)
7.5% 7.7% 6.9% 4.8% 11.0% -45.4% 7.4% 6.4% -1 pt
Operating profit 51 46 30 21 -4 -18 77 52 -33%
Property Development division Income statement
Limited decrease in revenue in the Property Development division despite tough operating conditions, and resilient margins, particularly in Residential
Development
(1) Including business-line intra-group items
(2) After elimination of business-line intra-group items
Fin
anci
al r
esul
ts
€m
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2012
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ual R
esul
ts
Services division Income statement
Structural streamlining now complete
Property management
Advice/ appraisals TOTAL Change
(%)
Businesses divested
(in 2011 and 2012) or
being divested
2011 2012 2011 2012 2011 2012 2011 2012
Revenue 34 33 18 15 52 48 -7% 58 15
EBITDA 4 4 3 2 7 5 -19% 4 0
EBITDA margin (EBITDA/revenue)
10.7% 10.7% 16.2% 11.5% 12.5% 11.0% -1.5 pts 7.6% -0.6%
Operating profit 3 3 2 1 6 4 -30% 4 -1
Fin
anci
al r
esul
ts
€m
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ual R
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ts
From operating profit to net profit (group share)
Co
mm
erci
al P
rop
erty
2011 2012 Change
%
Operating profit - Property Investment 176 138 -21%
Operating profit - Property Development 77 52 -33%
Operating profit - Services 9 3 -64%
Icade holding company and intra-group operating profit
-24 8 NA
Icade operating profit 238 201 -16%
Net financial items -97 -102 +4%
- Tax -44 -37 -16%
Net profit 98 62 -37%
- Minorities' share of net profit -5 -9 +78%
Net profit (group share) 93 53 -43%
Fin
anci
al r
esul
ts
€m
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2012
Ann
ual R
esul
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Change in net current cash flow
Net current cash flow up 13%, mainly due to strong performance in the Property Investment division
223.5
251.4
+36.0
-10.7 -5.7
+11.7
-3.9
+0.5
NCCF 2011 EBITDA PropertyInvestment
EBITDA PropertyDevelopment
(adjusted for SASPNE)
EBITDA Services Head office costs,intra-group items
and other
Net underlyingfinancial items
Underlyingcorporate income
tax
NCCF 2012
€4.32
per share
€4.86
per share
Fin
anci
al r
esul
ts
€m
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2012
Ann
ual R
esul
ts
Total portfolio value Change over the period
Continuing disposals of non-strategic assets
€m (excluding transfer duties)
(1) Buildings at their appraisal value
2,567 2,557 2,426
1,542 1,576 1,570
437 440 442
1,317 1,375 1,725
864 809 687
December 2011 June 2012 December 2012
Business parks Retail and shopping centres Offices, France
Healthcare Non-strategic portfolio
6,850(1)
+1.4%
6,727(1) +0.4%
6,757(1)
Strategic
and Alternative
90%
Strategic
and Alternative
88%
Strategic
and Alternative
87%
Fin
anci
al r
esul
ts
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2012
Ann
ual R
esul
ts
Commercial Property portfolio value Analysis of changes
Like-for-like fall of 1.6% in the value of the Commercial Property portfolio
2,567 2,426
1,542 1,570
437 442
1,317 1,725
552 430
-194 -66
+214 +324
-12 -88
Dec 2011 Disposals ofstrategic assets
Disposals ofnon-strategic
assets
Investments Healthcareacquisitions
Rate effect Business planeffect
Dec 2012
6,415
6,593
-1.6% like-for-like
Change in value on
like-for-like portfolio:
- €100m
Business parks Retail and shopping centres Offices, France
Healthcare Non-strategic portfolio (Offices, Germany and Warehouses)
Strategic and
Alternative
91%
Strategic and
Alternative
93% Fin
anci
al r
esul
ts
€m (excluding transfer duties)
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39
2012
Ann
ual R
esul
ts
Commercial Property portfolio value Like-for-like change
Highly contrasting pattern in yields from one asset class to the next
(1) Impact on appraisal value of the revised yields and discount rates used by appraisers
(2) Impact on appraisal value of revised assumptions in building business plans (e.g. rent index, lease renegotiation, adjustment of market rental value, change in vacancy rate, change in construction plans and unbillable expenses, etc.)
(3) Annualised net rent from rented space plus potential net rent from vacant space at market rental value, divided by appraised value excluding transfer duties of rentable space
Appraisal values (excluding transfer duties)
like-for-like
Yield
(excluding transfer duties)(3)
31/12/12 First half 1 year
of which
interest
rate
effect(1)
of which
business
plan
effect(2)
31/12/12 6 months 1 year
Offices, France 2,426 +0.3% -2.2% +0.8% -3.0% 6.7% -13bp -6bp
Business parks 1,570 +0.3% -1.5% +0.3% -1.8% 7.8% +7bp +24bp
Total Strategic 3,996 +0.3% -1.9% +0.6% -2.5% 7.2% -3bp +8bp
Shopping centres 442 +0.7% +0.6% -0.2% +0.9% 6.2% +2bp +7bp
Healthcare 1,725 +2.5% +2.6% +0.3% +2.3% 6.9% +20bp +8bp
Total Alternative 2,167 +2.0% +2.1% +0.2% +1.9% 6.7% +18bp +11bp
Non-strategic portfolio 430 -4.1% -12.8% -8.0% -4.8% 10.5% +103bp +153bp
Total 6,593 +0.4% -1.6% -0.2% -1.4% 7.2% +4bp +12bp
Fin
anci
al r
esul
ts
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40
2012
Ann
ual R
esul
ts
Analysis of change in EPRA triple net NAV per share
3.6% decrease in EPRA triple net NAV per share
Dec 2011 2012 dividend Consolidated
profit
Change
in gains on
total portfolio
Change
in gains on
development
and services
companies (1)
Change
in fair
value of
derivative
instruments (2)
Other Dec 2012
(1) The valuation method used is based mainly on a discounted cash flow (DCF) model over the period of each company's business plan, together with a terminal value based on normalised cash flow growing in perpetuity.
Among the financial parameters used, the weighted average cost of capital, up relative to the valuation at end-2011, was between 8.95% and 13.06% for development companies and between 8.35% and 10.89%
for service companies. The enterprise value of development and service companies decreased by 1%. After deduction of net debt, the equity value of development and service companies comes to €426.7m versus €426.6m
at 31 December 2011
(2) Change in fair value of derivatives and fixed-rate debt
Impact
of the sale
of shares in
Icade Santé
Fin
anci
al r
esul
ts
€/share
83.7
80.7
- 3.7
+ 1.0
- 0.2 - 0.6
+ 0.9
- 0.3 - 0.1
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ual R
esul
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Debt structure at 31 December 2012
Stable LTV relative to 31 December 2011
An ICR of 3.52x operating profit (excl. depreciation) and 3.58x EBITDA
Longer average maturity of debt and lower average cost
Over 90% of debt hedged through suitable instruments
No covenant issues
31/12/12 31/12/11
LTV (Loan To Value) 39.8% / 38.4% (1) 40.0% / 36.3% (3)
Net debt (€m) 2,725 2,691
Average term of debt 4.3 years (2) 3.8 years
Average cost 3.83% (average 3-month Euribor in 2012: 0.57%)
4.08% (average 3-month Euribor in 2011: 1.39%)
Hedging (average hedge term: 2.9 years)
91% 87%
(1) 38.4% adjusted for assets being sold (covered by promise of sale)
(2) After taking account of the mortgage loan on the Parc du Pont de Flandre arranged in December 2012, with funds available in January 2013
(3) 36.3% adjusted for the Icade Santé capital increase in early 2012
Fin
anci
al r
esul
ts
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42
2012
Ann
ual R
esul
ts
Drawn debt maturity schedule in €m (1)
431
635
463 364
575
129 45 43
295
0
100
200
300
400
500
600
700
2013 2014 2015 2016 2017 2018 2019 2020 2021 et+
(1) Excluding debt relating to equity interests, bank overdrafts including repayment of the Silic intragroup loan
Debt by type
€1.75bn of financing arranged in 2012 through innovative solutions such as a forward-start loan
and a mortgage loan secured on a business park
Purpose: anticipate financing requirements, diversify financing sources and ensure a more even
maturity schedule
Debt mainly relating to the Property Investment division
Increase in available facilities (€895m), equivalent to 26.4% of gross debt
Firm grip on liquidity risk
Financial structure remains solid
Debt structure at 31 December 2012 F
inan
cial
res
ults
Mortgage loans 11.4%
Finance leases 4.2%
Corporate borrowings
79.4%
Bank overdrafts 2.0%
Other debt 0.2%
USPP 2.8%
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Clinique du Parc (Castelnau-Le-Lez)
1 Strengths of the Icade business model
2 Financial results
3 Opportunities and strengths
4 Appendices
C o n t e n t s
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ual R
esul
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Icade Santé Maintaining growth
Other
investors
37%
Icade
63%
€m 31/12/2011 30/06/2012 31/12/2012
Net rental income 61.0 42.5 90.5
EBITDA 55.9 40.2 85.4
Operating profit 29.0 19.8 43.3
Net current cash flow 38.7 29.7 66.6
Portfolio value 1,317.0 1,374.9 1,724.5
Net debt 749.9 502.5 683.9
NAV 554.2 848.8 1,032.3
LTV 56.9% 36.5% 39.7%
Icade Santé was set up in 2007, and owned
55 healthcare facilities valued at €1.7bn
at 31/12/2012
Assets mainly consist of medicine, surgery and
obstetrics facilities, some follow-up and rehabilitation
care facilities, and psychiatric facilities
Icade Santé was wholly owned by Icade until 2011,
but a capital increase was subscribed by institutional
investors in early and late 2012 (including Crédit
Agricole Assurances, BNP Paribas Cardif and Macif)
to finance its growth - this took Icade's stake down
to 63% at 31/12/2012 (average stake in 2012: 72%)
Icade intends to retain a majority stake and
managerial control
Key figures
Icade Santé ownership structure
Opp
ortu
nitie
s an
d st
reng
ths
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Générale de Santé
27%
Vedici 31%
Harpin 6%
3H 5%
C2S 2%
Icade Santé Portfolio breakdown
* MSO: Medicine, surgery, obstetrics ** FRC: Follow-up and rehabilitation care *** MHE: Mental health establishment
Icade Santé portfolio – 31 December 2012
One of Icade Santé's advantages for investors is the diversity of its portfolio in terms of location and operators, which reduces risk
Breakdown by operator as %
of total portfolio value
44 MSO* clinics acquired
11 FRC** and MHE*** centres acquired
Nancy
Clermont-Ferrand
Brest
Les Sables d’Olonne
La Roche sur Yon
Poitiers
Toulouse / Muret
Agen
Aire sur l’Adour
Pau
St Etienne
Orléans
Chartres
Laval
Roanne
Arras
Nantes
Villeneuve d’Ascq
Bordeaux
Saintes
Niort
Toulon
Valenciennes
Vendôme
Bergerac
Montauban
Montpellier
Angoulême
Limoges
Dunkerque
Soissons (MHE)
Le Mans
Brive
Nancy
Clermont-Ferrand
Trappes
Le Chesnay
Champigny/Marne
Nogent/Marne
Le Bourget
Bry/Marne
Drancy
Charenton
Vitry/ Seine
Médi-
Partners
26%
Clinipôle
3%
Opp
ortu
nitie
s an
d st
reng
ths
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Combination with Silic Rationale for the transaction
Compelling industrial logic
► Creation of France’s largest property investment company in the office segment and uncontested leader in business
parks
► A player to be reckoned with in Grand Paris, with geographically complementary sites
► A stronger commercial offering for large customers
► Similar “investor-developer” business models
► A good fit between the two management teams as well as similar corporate cultures,
facilitating integration and exchange of know-how
► A pipeline well in hand and prospects of further value creation with nearly 2 million m² of buildable land reserves
A deal consistent with Icade's financial objectives
► A transaction in securities that preserves the financial structure of the combined entity
► Exchange ratio in line with NAVs of the two companies
► An immediately accretive transaction in cash flow terms
A more prominent presence on the stock exchange
► Unique positioning among listed issuers in the sector
► Increase in free float
► Backing of two major shareholders that invest for the long term, with CDC remaining the controlling shareholder
Opp
ortu
nitie
s an
d st
reng
ths
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ts
Combination with Silic Change in Icade’s profile
The business combination with Silic marks a new stage
in Icade’s growing focus on property investment and commercial
property
(1) Silic data at 30 June 2012
Icade at 31 December 2012
Combination with
Silic Icade + Silic
combined (1)
Total portfolio (excluding transfer duties) €6.8bn €10.2bn
of which Offices, France and Business Parks €4.0bn 58% €7.4bn 72%
Annualised recurrent rental income €397m €577m
Property Investment division - proportion of EBITDA in 2012
84% 88%
Property Investment division - proportion of NAV in 2012
93% 95%
Opp
ortu
nitie
s an
d st
reng
ths
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48
2012
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ts
Combination with Silic Deal timetable
In view of the appeal, the next steps in the timetable will depend on the ruling
by the Paris Court of Appeal, expected in the first half of 2013. The offer
remains open until further notice
Formation
of a holding
company ("HoldCo")
owned by Caisse des
Dépôts ("CDC")
to which CDC
transfers its
entire equity interest
in Icade
Transfer of a 6.5%
stake in Silic to
HoldCo by Groupama
30 December
2011
Authorisation
by the French
Competition
Authority
13 February
2012
Transfer of
remaining Silic
shares held by
Groupama to
HoldCo
16 February
2012
Icade submits
a public offer
for Silic with a
commitment
from HoldCo to
tender its
entire 44%
stake in Silic to
the offer
13 March
2012
Offer approved
by the AMF
24 April
2012
AMF decision
to extend offer
period
15 May
2012
Paris Court of
Appeal hears
an application
to overturn the
AMF’s
approval of the
offer
21 March
2013
Ruling
from Paris
Court of
Appeal
End of first half
of 2013
Opp
ortu
nitie
s an
d st
reng
ths
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Outlook
Crystallisation of improvements ensuring ongoing medium-term net current cash
flow growth
► Letting of existing properties
► Development of major projects secured in 2011 and 2012
► Firm control over the pipeline: new value-creating operations launched in line with demand
► Securing the positive contribution of the Development division
► Reducing cost of debt due to the diversification policy
Completion of the cash flow enhancing combination with Silic
Dividend moving in line with net current cash flow
LTV to be held at around 40%
Proposed dividend of €3.64 per share
► 9% increase relative to the recurring portion of the 2012 dividend
► Yield of 5.3% based on the share price on 19 February 2013
Opp
ortu
nitie
s an
d st
reng
ths
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C o n t e n t s 1 Strengths of the Icade business model
2 Financial results
3 Opportunities and strengths
4 Appendices
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51
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Ann
ual R
esul
ts
French commercial property market A
ppen
dice
s
(1) Source : CBRE Richard Ellis
(2) Source : Banque de France
Commercial property commitments in France
by semester (1)
Paris region
rental values between 2000 and 2012 (1)
Comparison of yields (at end of period) (2)
31/12
2010
31/12
2011
31/12
2012
West Central Paris 5.6% 4.9% 5.2%
South Paris 5.9% 4.2% 3.6%
Northeast Paris 3.4% 3.3% 3.5%
Paris average 5.3% 4.4% 4.4%
La Défense 6.0% 7.0% 6.6%
Western Crescent 9.9% 10.4% 10.8%
Inner suburbs, North 9.1% 11.7% 10.5%
Inner suburbs, East 8.4% 7.9% 7.6%
Inner suburbs, South 8.6% 7.3% 7.8%
Outer suburbs 6.3% 6.0% 5.6%
Total Paris region 6.8% 6.6% 6.5%
Vacancy rates in the Paris region (1)
0
5
10
15
20
25
30
03 04 05 06 07 08 09 10 11 12
S1 S2
€14.5 bn
(€bn)
€771
€441
€295
200 €
400 €
600 €
800 €
03 04 05 06 07 08 09 10 11 12
« Prime » West Central Paris « Prime » La Défense Average Paris region
€ / m² / year, excluding VAT and charges
03 04 05 06 07 08 09 10 11 12
Yield on "prime" office properties in Paris CBD
OAT TEC 10
3-month Euribor
4,25 %
0,19%
2,06 %
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Construction activity has fallen. Between December 2011 and
November 2012, new housing starts totalled 360,000, down 11.3%
The 62,600 units sold and reserved in the first nine months of the year
show a 16% fall in activity relative to the same period of 2011
The decline in volumes is due to the combined effect of:
► a sharp reduction in the tax benefits of rental investment
► a wait-and-see stance among consumers given economic uncertainties
► a significant reduction in assistance with social home ownership due to
the PTZ+ reform in late 2011
► tougher lending criteria being applied to buyers - although interest rates
remain low (average of 3.31% in November according to Observatoire du
Crédit Logement), lending conditions remain restrictive (higher
affordability ratio required and shorter average loan term)
► ongoing pressure on prices and likely levelling-off of rents making rental
yields less attractive for investors
The end of the Scellier regime in 2013, replaced by the Duflot regime,
should lead to a shift in focus towards social housing with capped
rents and probably lower yields, in return for substantial but capped
tax breaks. The Duflot act, which came into force on 1 January 2013,
has the same aim as the Scellier act, i.e. to address housing
shortages through the construction of new housing
Due to the increase in commercial supply and lower sales, the
average disposal rate (ratio of inventory to sales) for continental
France rose to 13 months in the third quarter of 2012
French residential property development market
Building starts and building permits granted
(all France) (1)
(1) Source: MEEDDAT/SESP, SOeS, FPI, CBRE, CF
(1)
(1) Commercial supply consists of housing units under construction, in design, or completed
(number of housing units)
(by developers, developments of at least 5 units)
(number of housing units)
548 456
397 454
535 514 435
369 333 346
421 360
0
200 000
400 000
600 000
2007 2008 2009 2010 2011 2012
Building permits Building starts
0
50 000
100 000
150 000
200 000
2T00 2T01 2T02 2T03 2T04 2T05 2T06 2T07 2T08 2T09 2T10 2T11 2T12
New offers for sale Sales Commercial supply
0
50 000
100 000
150 000
00 01 02 03 04 05 06 07 08 09 10 11 12(p)
Sales to investors Sales to occupiers Total sales
(by developers, developments of at least 5 units, cumulative over 12 months)
New residential offers for sale, sales and units
under construction in France*
Residential sales volume*
App
endi
ces
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53
2012
Ann
ual R
esul
ts
0 2 4 6 8 10 12 14
Distribution of assets by portfolio
Value creation potential
Icade’s strategy is to create and develop portfolios of complementary assets, with the potential to create
significant value over the medium term, in market segments where Icade already has leading positions
and where cash flow is reliable
This growth strategy has been confirmed by asset allocation choices and gradual withdrawal from
segments that do not constitute core assets, such as German office buildings, logistics platforms and
residential property
App
endi
ces
Security of cash flow (average committed duration
of leases in years)
Strategic
Healthcare: clinic portfolio created in less than
5 years, with initial lease durations of 12 years,
generating immediate and sustainable cash flow.
Shopping centres: assets developed in partnership
with the Property Development division.
3 main principles:
- Optimisation, rotation (sale of mature assets),
- Rationalisation (sale of medium-sized or jointly
owned assets),
- Shift to commercial property (sale of assets no
longer forming part of core business).
Arbitrage
Alternative
Offices, France: a high quality portfolio,
with average lease of 5 years,
generating reliable cash flow.
Business parks: strong potential for organic growth
(1 million m² of land reserves) future cash flow
generators and strong value creation.
Offices,
Germany €233m
Warehouses
€197m
Residential
€257m
Healthcare
€1,725m
Shopping centres
€442m Offices, France
€2,426m
Business
parks
€1,570m
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esul
ts
Main features of the portfolio
(1) Including land reserves and projects in development for €725m (2) 1 January 2012: transfer of Healthcare assets not owned by Icade Santé (mainly the Levallois building let to the ministry of the Interior) to Offices, France
Figures at 31 December 2012 (2)
Portfolio
value
excl.
duties(1) (€m)
Rentable
space (m²)
Rented
space (m²)
Financial
occupancy
rate (%)
IFRS rental
income,
annualised (€m)
Remaining
committed
lease
term (years)
Net yield
(excluding
transfer
duties) (%)
Offices, France 2,426 308,249 287,292 94.0% 111.6 5.6 6.7%
Business parks 1,570 475,378 439,384 91.0% 96.3 4.2 7.8%
Shopping centres 442 211,346 209,287 97.2% 24.3 4.7 6.2%
Healthcare 1,725 780,327 780,327 100.0% 115.5 9.6 6.9%
Warehouses 197 561,987 507,230 90.4% 21.7 4.8 12.5%
Offices, Germany 233 99,473 84,958 90.1% 12.9 7.5 8.3%
TOTAL COMMERCIAL
PROPERTY 6,593 2,436,759 2,308,478 94.8% 382.3 6.4 7.2%
App
endi
ces
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55
2012
Ann
ual R
esul
ts
Pipeline 2013-2016 Summary of investment flows
57 51 26
2013 2014 2015 2016
198 149 135
59
2013 2014 2015 2016
€m
Total: €541m
Business parks
€353m
Offices
€110m
Healthcare €78m
66
23 21
2013 2014 2015 2016
46 43 71 59
2013 2014 2015 2016
Breakdown by year and asset type Breakdown by major project
Millénaire 3
Clinics
Tour EQHO
Bu
sin
ess
par
ks
Hea
lth
care
O
ffic
es
29 32 17
2013 2014 2015 2016
Veolia project
App
endi
ces
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2012
Ann
ual R
esul
ts
Parc du
Mauvin
Parc des
Portes de Paris
Parc du
Pont de Flandre
Parc du
Millénaire (inc.
Millénaire 5 & 6)
Total business
parks
Space (offices + light industrial areas)
22,000 m2 322,500 m2 90,500 m2
75,600 m2
510,600 m2
Valuation
(excl. transfer duties) €26m €669m €400m €324m
€1,419m (excl. land reserves and
development)
Valuation / m2 €1,621/m² €2,130/m² €4,417/m² €4,853/m² €2,911/m²
Yield 8.3% 8.7% 7.3% 6.7% 7.8%
Average rent / m2 €162/m² €178/m² €308/m² €328/m² €223/m²
Occupancy rate 92% 92% 86% 97% 91%
Main tenants
TGI
Icade business parks features A
ppen
dice
s
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57
2012
Ann
ual R
esul
ts
Ann
exes
Cergy
Evry
Courcouronnes
Roissy / Paris Nord
Villebon-Courtabœuf
Orly
Rungis
Maisons-Alfort
Villejuif
Issy-les-Moulineaux
Boulogne-Billancourt
St-Denis
19
Aubervilliers
15
8 Paris
Rueil-Malmaison Neuilly
Nanterre
Puteaux
Location of Icade+Silic
>€100m
€50m to €100m
€0m to €50m
Business parks
Icade offices
Icade business parks
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58
2012
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ts
(1) Based on undiluted number of shares excluding treasury shares of 17.4m Silic shares and 51.6m Icade shares (estimates ass at 31/12/2011)
(2) Based on diluted number of shares excluding treasury shares of 73.5m Icade shares after the transaction
(3) Scenario assuming 100% acceptance of the offer
Completion of transfers to Holdco (1) (end-February 2012)
Share exchange offer for Silic (2) (3)
(during 2013)
CDC
HoldCo Other
ICADE SILIC
56%
Other
44%
Groupama
& Caisses
44% 56%
75% 25%
CDC
HoldCo
ICADE
Other
48%
Groupama
& Caisses
52%
SILIC
100%
75% 25%
CDC will remain the
controlling shareholder
in Icade
Business combination between Icade and Silic Structure of the transaction
App
endi
ces
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59
2012
Ann
ual R
esul
ts
Combination between Icade and Silic Combined entity's commercial portfolio at 31 December 2012
Commercial portfolio of €9.9bn, 80% in the Paris region
Business parks
24%
Offices, France
37%
Other
commercial
assets
39%
€6.6bn
61%
Paris
16%
Western Crescent
15%
Other
31%
€6.6bn
69%
La Défense
11%
Inner and outer
suburbs of Paris
27%
Land reserves
6%
Business parks
(buildings
in operation)
93%
Buildings
in development
1%
€3.3bn
100%
Paris Nord St Denis
14%
€3.3bn
100%
Nanterre / A86
42%
Orly-Rungis
36%
Other Paris and suburbs
8%
Business parks
50%
Offices, France
24%
Other
commercial
assets
26%
€9.9bn
Paris
11%
Western
Crescent
24% Other
21% €9.9bn
La Défense
7%
Inner and outer suburbs of Paris
37%
(1) Values excluding transfer duties at 31 December 2012, excluding residential
(2) Values excluding transfer duties at 30 June 2012
Icade + Silic Silic (2) Icade (1)
App
endi
ces
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60
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Ann
ual R
esul
ts
Icade key figures
€m 31/12/11 31/12/12 %
Revenue 1,492 1,499 +0.5%
EBITDA 355 384 8.2%
Profit on disposals 64 81 +26.7%
Operating profit 238 201 -15.6%
Net financial items -97 -102 +4.5%
Net profit (Group share)
93 53 -43.3%
Net current cash flow
NCCF per share(1)
223
€4.32
251
€4.86
+12.5%
+12.4%
€m 31/12/11 30/06/12 31/12/12
Net debt 2,691 2,667 2,725
Appraisal value 6,727 6,757 6,850
Loan To Value (LTV) 40.0% 39.5% 39.8%
EPRA triple net NAV
4,313 4,189 4,190
EPRA triple net NAV per share (2)
€83.7 €80.8 €80.7
Dividend per share
of which recurring
of which non-recurring
€3.72
€3.35
€0.37
€3.64
€3.64
€0.00
(1) Average fully-diluted number of shares excluding treasury shares: 51,695,635 for 2011 and 51,795,086 for 2012
(2) Fully-diluted number of shares excluding treasury shares and dilutive instruments: 51,551,923 at 31 December 2011, 51,833,763 at 30 June 2012 and 51,943,243 at 31 December 2012.
App
endi
ces
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ual R
esul
ts
Rental income trends
Rental income trends between 2009 and 2012 (€m)
419 389
362 397
+3 -33
+8 -35
+8 +27
2009 Change like-for-like
Change fromacquisitions
and disposals
2010 Change like-for-like
Change fromacquisitions
and disposals
2011 Change like-for-like
Change fromacquisitions
and disposals
2012
+0.8%
like-for-like
+2.0%
like-for-like
+2.1%
like-for-like
App
endi
ces
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2012
Ann
ual R
esul
ts
€m 2011 2012 %
Recurring EBITDA (1) 355 387 +8.8%
Net underlying financial items -97 -101 +4.0%
Corporate income tax (2) -44 -37 -15.7%
Tax on depreciation provision recognised on customer contracts and on net change in provisions on investment - Property Development division
0 -1 NA
Capital gains tax on disposals 9 2 NA
Exit tax 0 2 NA
Underlying income tax -35 -34 -1.4%
Net current cash flow 223 251 +12.5%
Analysis of net current cash flow 2011 - 2012
(1) Adjusted for SAS PNE's EBITDA, which is treated as non-recurring (after elimination of internal margins generated within the Property Development division)
(2) Corporate income tax results from Icade's property development and services businesses and from its holding company activities.
App
endi
ces
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Ann
ual R
esul
ts
EPRA triple net NAV
- 14 - 13 -14
2,720 2,646 2,637
1,505 1,523 1,496
102 33 71
Dec 2011 June 2012 Dec 2012
4,189 or €80.8 per share
4,313 or €83.7 per share
€m
-3.4%
Unrealised gains on Property Development / Services
Shareholders’ equity (+ FMV of debt and impact of dilution)
Unrealised gains on property assets net of transfer duties
Tax on property assets and companies
4,190 or €80.7 per share -0.2%
App
endi
ces
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64
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Ann
ual R
esul
ts
31/12/12 30/06/12
Change over 6 months
(%) 31/12/11
Change over full year
(%)
EPRA triple net NAV
group share (€m) 4,190 4,189 - 4,313 -2.8%
Number of shares
(fully diluted) 51,943,243 51,833,763 51,551,923
EPRA single net NAV
per share (group share in €) 84.7 84.9 -0.2% 87.5 -3.1%
EPRA triple net NAV per share (group share in €)
80.7 80.8 -0.2% 83.7 -3.6%
EPRA Net Asset Value A
ppen
dice
s
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Ann
ual R
esul
ts
Yields (1) Excluding transfer duties
6.8
% 7.7
%
6.7
%
6.9
%
10.6
%
6.9
%
7.3
%
6.8
%
7.6
%
6.5
%
6.8
%
10.7
%
7.8
%
7.2
%
6.8
%
7.6
%
6.1
%
6.8
%
10.4
%
7.5
%
7.1
%
6.9
%
7.8
%
6.2
%
6.7
%
10.9
%
8.0
%
7.2
% .6.7%
7.8%
6.2%
6.9%
12.5%
8.3%
7.2%
Offices France Business parks Shopping centres Healthcare Warehouses Offices Germany Total commercialproperty
31/12/2010 30/06/2011 31/12/2011 30/06/2012 31/12/2012
(1) Annualised net rent from rented space plus potential net rent from vacant space at market rental value, divided by appraisal value excluding transfer duties of rentable space
App
endi
ces
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66
2012
Ann
ual R
esul
ts
Revenue and EBITDA
(88) (34)
110 63
1,106 1,071
364 400
2011 2012
1,492 1,499
+10%
-3%
7%
24%
74%
4%
27%
71%
-2% -6% (24) (13)
11 5
82 69
287 323
2011 2012
355 384 +8%
+13%
-16%
81%
3%
84%
1% -3% -7%
EBITDA Revenue
Property Investment Property Development Services Other (1)
(1) Icade SA and intra-group inter-business line
23% 18%
€m
App
endi
ces
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67
2012
Ann
ual R
esul
ts
Breakdown of capital employed by business line
Portfolio value excluding transfer duties
Enterprise value of development companies
Enterprise value of service companies
€68.5m
1.0%
€406.7m
5.6%
€6,727.3m
93.4%
€40.6m
0.5%
€429.8m
5.9%
€6,849.7m
93.6%
App
endi
ces
December 2011 December 2012
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68
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Ann
ual R
esul
ts
G&A A
ppen
dice
s
2011 2012
(€m) Property investment
Property development
Services Intra-group Holding
company ICADE
Property investment
Property development
Services Intra-group Holding
company ICADE
Revenues 364 1 106 110 -89 0 1,492 400 1,071 63 -40 6 1,499
Operating expense -55 -979 -84 68 - -1,051 -58 -957 -44 33 -2 -1,027
Support functions recurring expense
-22 -45 -16 - -2 -85 -19 -45 -14 - -5 -83
Support functions expense net of non-recurring income
1 -1 - - -1 -1 0 - - - -5 -5
EBITDA 288 82 10 -21 -4 355 323 69 5 -7 -6 384
Depreciation and impairment expense net of reversals
-164 -13 -1 1 -4 -181 -245 -17 -2 2 -3 -264
Gains on disposals 52 8 - 3 - 64 59 - - 1 21 81
Net operating income 176 77 9 -17 -7 238 138 52 3 -4 12 201
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69
2012
Ann
ual R
esul
ts
Breakdown of the 2012 dividend
€1.96 per share from the tax-exempt SIIC portion of earnings, corresponding to distribution obligations
► Distribution not subject to the additional 3% tax
► Distribution subject to the 15% withholding tax when paid to a French or foreign mutual fund
€1.44 per share from the tax-exempt SIIC portion of earnings, in addition to distribution obligations
► Distribution subject to the additional 3% tax
► Distribution subject to the 15% withholding tax when paid to a French or foreign mutual fund
€0.24 per share from taxable non-SIIC portion of earnings
► Distribution subject to the additional 3% tax
► Distribution not subject to the 15% withholding tax
The 30% withholding tax previously applied to dividends paid to foreign mutual funds no longer applies
However, distributions to French or foreign CIUs from the tax-exempt portion of earnings are subject
to a 15% withholding tax
A dividend of €3.64 per share for 2012
App
endi
ces