FURTHERING OUR STRATEGY IN EUROPE - Unibail-Rodamco
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FURTHERING OUR STRATEGY IN EUROPE
AGENDA
1 2 3
STRONG CUSTOMER FOCUS HOW DO WE CAPTURE
FUNDAMENTALS ENHANCES OPERATIONAL
IN EUROPE VALUE CREATION SYNERGIES?
4 5 6
COMMERCIAL ONE INTERNATIONAL FRENCH PORTFOLIO
PARTNERSHIPS LEASING PLATFORM IN MOTION
STRONG FUNDAMENTALS IN EUROPE
+142
We operate the best assets +43
in the most attractive markets... Stockholm
City Top 3 shopping centres(1) +144
+195
+76
Warsaw
+77
Paris +153
London +111
+176 +78 bps
Prague -1
Warsaw
Madrid Paris Ruhr region
+4 bps Prague
+120
London Vienna
+37
+122
Stockholm +77
+153 +128
Lyon
Barcelona
+78
+16
Vienna
Barcelona
Lyon Madrid
Shopping centres in grey are not owned
by Unibail-Rodamco-Westfield
GDP per capita as % of national average(2)
(1) Shopping centres ranking based on GSA shopping centre grades and on top-3 footfall for same grade assets (3)
Population growth above national average since 2014 (bps)
(2) City defined as MSA (i.e metropolitan statistical area): geographical region with a relatively high population density and close
economic ties throughout the area. Sources: OECD, Brookings and JPMorgan Chase, World’s Richest Countries. For Vienna,
GDP/Capita based on Vienna-Bratislava GDP/Capita on Brookings and JPMorgan Chase report.
(3) Spread between 5Y CAGRs of city population growth and national average. Source: Eurostat 2019 INVESTOR DAYS 4
And our catchment areas are the best positioned
European retail REITs average catchment area size and purchasing power
Total trade areas average purchasing power (€ Bn)
70.0
Peer 7
Peer 4
50.0 Peer 6
Peer 3
Peer 5
Peer 2
Peer 1
30.0
1.5 2.0 2.5 Size of bubble
indicates portfolio size
Population (weighted average, millions)
Source: March 2019 European Real Estate study by UBS on malls catchment areas
Peers list (alphabetical order): British Land, Eurocommercial, Hammerson, Intu, Klepierre, Landsec, Wereldhave 2019 INVESTOR DAYS 5
We own the highest quality European portfolio...
URW GMV Portfolio distribution by GSA grade for main European retail REITs
distribution by grade (# of assets per grade)(2)
URW Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7
A++
3% 3%
11% A+
34% A
A-
13%
B+
B
B-
38% C+
A++ A+ A C
A- B+ Below B+ C-
D
94%(1) GMV
In A category assets
(1) Figures may not add up due to rounding
(2) Green Street Advisors as of April 2019, excluding assets with GLA ≤ 10,000 sqm. Scope: European assets only,
Shopping centres only for URW. Peers list (alphabetical order): British Land, Eurocommercial, Hammerson, Intu,
Klepierre, Landsec, Wereldhave 2019 INVESTOR DAYS 6
… and our assets attract the highest footfall
Top 30 European assets by footfall(1)
52
49
43 19 URW assets
39 among the Top 30
31 30
27
25
21 21 21 20 20 20 20 19 19 19 19 18 18 18 17 17 17 16 16 15 15 15
(1) In countries where URW operates, in Mn visitors, 2018. Source: Sites Commerciaux June 2019. Evry 2 has been
added with the footfall disclosed on the landlords website, and Shopping City Süd footfall restated to include the
entire complex 2019 INVESTOR DAYS 7
As a result we achieve outstanding performance
2014 – 2018 operational performance(1)
Tenant sales Rotation rate EPRA vacancy MGR uplift Lfl NRI growth
+3.1% 12.3% 2.4% +15.9% +3.9%
+160 bps above NSI +20.7% for Flagships >300 bps above
indexation
(1) Continental Europe only. Rotation rate, EPRA financial vacancy rate are average values on the 2014-2018 period.
MGR uplift is a compound average over this same period. Tenant sales increase and Lfl NRI growth are CAGR (base
100) over this same period. 2019 INVESTOR DAYS 8
CUSTOMER FOCUS ENHANCES
VALUE CREATION
Understanding customer expectations…
78% of consumers prefer to shop in store(1)
Generation X Millenials Generation Z
42% 73% 76%
expect more health-focused think personalized service is a key factor think physical stores provide
F&B retailers(2) when choosing shopping destinations(2) a better shopping experience(3)
41% 35% 70%
want more open spaces want more entertainment & dining combine shopping with socializing
with greenery in the malls(2) options in the next 10 years(2) or leisure activities(3)
(1) ICSC study “Shopping Centers: America’s First and Foremost Marketplace”
(2) Retail Research Point of View; JLL; 2019
(3) ICSC Industry Insights: Gen Z Shopping Behavior Support Retail Real Estate; September 19, 2018 2019 INVESTOR DAYS 10… and placing them at the forefront of our strategy
CUSTOMER
Exciting Best retail Digital Events &
destinations offer experience exclusive services
Westfield Mall of the Netherlands, Fresh! Donau Zentrum, Rituals Wroclavia, Mobile app Westfield London, Lady Gaga concert
2019 INVESTOR DAYS 12Active shift in tenant mix…
From malls… … to destinations
Change in GLA mix 2014-2018(1)
Dining
Fashion SSU(2) +9%
-13%
Entertainment
Hypermarkets +9%
-3%
Sport
Do It Yourself
+18%
-3% Health & beauty
+12%
(1) Constant asset perimeter
(2) Small Size Units, GLA ≤ 500 sqm 2019 INVESTOR DAYS 13… drives both landlord
and tenant performance
MGR uplift(1) New
on relettings tenants sales(2)
+18.9% +36%
vs departing tenants
(1) Compounded on 5 years, 2014 to 2018. Ex-UR Retail scope. 2017 & 2018 only include affiliates proportionally
consolidated
(2) Reported tenant sales growth per m² for the 12 month period ended March 2014 and ended March 2019. Analysis
excluding shopping centres opened after March 2014; New tenants: reported sales per sqm for the 12 month period
ended March 2019 compared to reported sales for the 12 month period ended March 2014 from tenants that left,
excl. the Netherlands where it is not a market practice to report sales, and Germany that was bought too recently
to have the historic sales 2019 INVESTOR DAYS 14
Centrum Chodov extension opening, 2017Creating outstanding food & dining destinations…
Growing eating-out market
+4.9% per year 20 10% 12 - 15% GLA
period 2017-2026(1)
deployed GLA Target(2)
40% of visitors base their choice of shopping centre
primarily on the dining options available(1)
(1) JLL Food Trends 2018 study
(2) Share of shopping centre GLA 2019 INVESTOR DAYS 15Creating outstanding food & dining destinations…
Täby Deli, Täby Centrum Grand Kitchen, Wroclavia
2019 INVESTOR DAYS 16… and offering leisure experiences
1st cinema worldwide 1st cinema in the UK and Ireland 1st cinema in Denmark 1st cinema in Czech Republic
Forum des Halles(1) Westfield London(2) Fisketorvet(3) Chodov(3)
1st cinema in mall in Spain 1st cinema in Austria 1st cinema in Warsaw 1st cinema in mall in Sweden
Splau(1) Donau Zentrum(4) Arkadia(3) Mall of Scandinavia(3)
27 Mn
Total estimated cinema tickets in URW EU portfolio in 2018
(1) In terms of 2017 tickets
(2) Highest grossing cinema in the UK and Ireland
(3) In terms of 2018 tickets
(4) In terms of estimated 2019 tickets 2019 INVESTOR DAYS 17… and offering leisure experiences
Having fun…
Citywave, Shopping City Süd Aspers Casino, Westfield Stratford City
Targeted
opening Feb.
Dimco building, Westfield London 2020 Virtual adventure, Carré Sénart
2019 INVESTOR DAYS 18Enriching shopping experience with new iconic retailers
1st in France 1st in Austria, Poland and Slovakia 1st in the UK 1st in mall in France 1st in France & Spain
1st in mall in Germany 1st in France 1st in mall in Spain 1st in Sweden 1st in Poland
1st in Sweden 1st in the UK 1st in the Czech Republic 1st in France 1st in Sweden
1st in mall in France 1st in mall in Germany 1st in mall in Spain 1st in the UK 1st in Germany
2015 2016 2017 2018 2019
2019 INVESTOR DAYS 19Introducing the latest concepts
Zara, Westfield Stratford City Nespresso, Galeria Mokotów Sephora, Les Quatre Temps
2019 INVESTOR DAYS 20Supporting retailers’ multi-channel strategy
Dining
Dedicated online area New Dining Experience
Interactive fitting rooms Partnering with leading platforms
Self-checkout areas
iPad-equipped salespeople
App-payments
2019 INVESTOR DAYS 21Customer engagement through digital strategies
6.5 Mn
loyalty members
in Continental Europe 80%
contacted monthly
o/w 22%
provided URW with Average
their shopping preferences opening rate
23%
10 Mn
vs 19% benchmark(1)
database target 2019
(1) www.smartinsights.com 2019 INVESTOR DAYS 22Offering unprecedented experiences
Events Family Experience Services
Forum des Halles Arkadia Westfield London
2019 INVESTOR DAYS 23La Maquinista in motion C A S E S T U D Y
95,000 sqm
GLA
220
stores
13 screens
cinema
5,500
parking spaces
45
dining units
2019 INVESTOR DAYS 24La Maquinista in motion…
Value creation 2008-2018:
SSU(1) tenant sales vs. NSI(2) CAGR NRI growth
+333 bps (3)
+6.4%
Rotation rate(4) MGR Uplift(4)
+16.2% +28.5%
OCR: from 9.0% to 12.0%
Acquisition Restructuring Dining Terrace opening
2008 2010 2012
(1) Small Size Units, GLA ≤ 500 sqm
(2) Spain NSI: Instituto Nacional de Estadistica. CAGR NSI 2008-2018 -140 bps
(3) Delta of CAGR base 100
(4) Yearly average 2019 INVESTOR DAYS 25La Maquinista in motion… re-tenanting
New anchors… … and a truly differentiating tenant mix in Barcelona
1st in mall
in Spain
1st in mall
in Spain
Tenant rotation(1): 78% over the period
(1) Share of number of stores with opening date after 01/01/2009 2019 INVESTOR DAYS 26La Maquinista in motion… re-designing and re-marketing
Re-designing Re-marketing
Rest area, La Maquinista Art Battle, La Maquinista
2019 INVESTOR DAYS 27And now…
The Fashion Pavilion
4,500 sqm
new fashion offer
9
fashion flagships
3 MSU(1)
out of 4 pre-let(2)
Opening
2020
(1) Medium Size Units, GLA between 501 and 2,500 sqm 2019 INVESTOR DAYS 28
(2) Let or in advanced negotiationsAnd now…
The Fashion Pavilion
Refurbishment
HoT signed
New escalator
New letting
2019 INVESTOR DAYS 29And now…
Brand new leisure and dining experience
Total dining
10,100 sqm +2,500 sqm
Total restaurants
45 +8 units
New concert
& animation area
Cinema: 13 screens
Fully refurbished
Opening
2020
2019 INVESTOR DAYS 30And now…
Brand new leisure and dining experience
New stage
New events space New family garden
Cocktail bar New terraces
13 new dining
New escalator
concepts
2019 INVESTOR DAYS 31And beyond: Maquinext, a densification project
Parking
Maquinext
Existing centre
Potential Post 2023
for new residential, co-working, Delivery
retail, dining & leisure
2019 INVESTOR DAYS 32Maquinista: As a result…
Standing asset
~30%
Reversionary potential
Fashion Pavilion,
new leisure & dining
7.5 – 8.0 %
experience (2020) expected ROI
Mixed-use Post 2023
densification delivery
To create more long-term value
2019 INVESTOR DAYS 33HOW DO WE CAPTURE OPERATIONAL SYNERGIES?
Capturing operational synergies via...
One brand One Commercial Partnerships One global leasing platform
platform
2019 INVESTOR DAYS 35Capitalizing on one Brand
10
assets rebranded
in September 2019
2019 INVESTOR DAYS 36COMMERCIAL PARTNERSHIPS
One Commercial Partnerships platform
Three main business lines tailored to brands and retailers
Media Retail Brand experience
40%(1) 34%(1) 17%(1)
Outdoor screen, Westfield London Chanel pop-up, Aupark Mercedes experience, Westfield Stratford City
(1) As percentage of income. Scope: all managed assets, at 100% 2019 INVESTOR DAYS 38One Commercial Partnerships platform
New experienced team and processes in place
DIRECTOR OF COMMERCIAL
Paul
PARTNERSHIPS EUROPE BUTTIGIEG
Ex-W, London based
HEAD OF COMMERCIAL
HEAD OF BRAND EXPERIENCE HEAD OF MALL RETAIL HEAD OF MEDIA
PARTNERSHIPS FRANCE &
UK & EUROPE UK & EUROPE UK & EUROPE
EUROPEAN OPERATIONS
Ex-W, London based Ex-W, London based Ex-W, London based
Ex-UR, Paris based
UK COMMERCIAL PARTNERSHIPS COMMERCIAL PARTNERSHIPS
OPERATIONS OPERATIONS IN 12 COUNTRIES
2019 INVESTOR DAYS 39Commercial Partnerships synergies
Continental Europe: capitalizing on Westfield experience
Teams in place
Detailed asset by asset review performed in all regions
Densification of digital totems and large screens started
New brand partnerships signed
+ €25 Mn +10% 63%
Revenue synergies in 2023(1) CAGR(2) of revenue synergies(3)
(1) On ex-UR portfolio
(2) From 2018 to 2023
(3) Out of €40 Mn revenue synergies 2019 INVESTOR DAYS 40Media - Digital screens and totems:
Best operators selling our leading media portfolio
Large outdoor screens Large indoor screens Digital Totems
2019 INVESTOR DAYS 41Retail: kiosks and pop-ups
Devialet, Les Quatre Temps Peloton, Westfield London
2019 INVESTOR DAYS 42Brand experience: integrating brands into customer touchpoints
Jeep experience at Equinoccio Samsung experience at Westfield London
2019 INVESTOR DAYS 43ONE INTERNATIONAL LEASING PLATFORM
Best markets, best cities, best assets
ALLOW FOR UNIQUE STRATEGY
to make URW
THE PREFERRED PARTNER
to create global opportunity via scale
2019 INVESTOR DAYS 45One international platform for global retailers
INTERNATIONAL EUROPEAN
2 1
LEASING LEASING
PLATFORM PLATFORM
2
1
2019 INVESTOR DAYS 47One international platform for global retailers
Traditional landlord - retailer account model URW landlord - retailer account model
CORPORATE PARTNER GROUP INTERNATIONAL LEASING
EU Account
Manager
US Account London
Manager New York Paris
Los Angeles
Asian Sourcing
Social Media
Monitoring
Corporate Partner Global Leasing hubs
2019 INVESTOR DAYS 48Group International Leasing: International and experienced team
PRESIDENT GROUP DIRECTOR OF
INTERNATIONAL LEASING
David COO
RUDDICK
US Ex-W, LA based EU
DIRECTOR OF INTERNATIONAL
SVP INTERNATIONAL LEASING LEASING EUROPE
NYC based Paris based
VP DIGITALLY NATIVE
VP INTERNATIONAL LEASING KEY ACCOUNT MANAGERS (x4)
VERTICAL BRANDS
NYC based Paris based
NYC based
SENIOR ANALYST
US ACCOUNT MANAGERS EUROPEAN REGIONAL TEAMS
BUSINESS MODELLING
& REGIONAL TEAMS 12 countries
LA based
2019 INVESTOR DAYS 49Group International
Leasing scope
Transcontinental Cross-Borders
Mature international brands
Established presence across URW portfolio 16
(both US & EUR platforms)
Influencer Brands
Highly differentiated brands with
a growing or emerging presence 115
Dynamic list, reviewed regularly
DNVBs
(Digital Native Vertical Brands)
Brands born online, with strong focus 79
on customer experience
2019 INVESTOR DAYS 50Increasing negotiation power
101 meetings at ICSC conference
Accelerating International Cross Border Retailers’
development in both platforms
Direct access to retailers’ decision makers
Best retailers’ partners
Increased ability to source upcoming brands
Combining strengths in Europe and the United
States gives negotiating leverage
2019 INVESTOR DAYS 51Relationship model
LOYALTY
Westfield World Trade Center, Nicki Minaj Concert
AIRPORTS PHYSICAL
VA L U E
PROPOSITION
FOR LAX Tom Bradley International Terminal
R E TA I L E R S
BRAND
MARKETING
VENTURES
Amazon Books, Westfield Century City
2019 INVESTOR DAYS 52Embracing the Convergence of Digital
#DNVB
Stores
90
80 77 Casper
70 65
60
50
40
40
38
35 UNTUCKit
30
24
18
20
12
10
8
US
1 1 1 EU
0
2013 2014 2015 2016 2017 2018 2019 YTD Jimmy Fairly
2019 INVESTOR DAYS 53
Includes signed but not yet opened DNVB dealsPlatform strategy
Health & Wellness
Offering a sense of community
& helping consumers
look and feel their best
with health, wellness,
athleisure, & boutique
fitness brands
2019 INVESTOR DAYS 54
SoulCycle, Westfield UTCPlatform strategy
Contemporary Designers
Emerging & established
premium brands
with strong consumer
engagement both online
and offline
2019 INVESTOR DAYS 55
James Perse, Westfield UTCPlatform strategy
Living
Appealing to the senses
with showcases of home goods,
audio products & technology
2019 INVESTOR DAYS 56
Arhaus, Westfield UTCPlatform strategy
Entertainment
Our global entertainment
platform of bold
and engaging events
2019 INVESTOR DAYS 57
Dreamscape, Westfield Century CityPlatform strategy
Luxury
Iconic global brands
with strong presence
at URW flagship properties
in key markets, including
Los Angeles, Silicon Valley,
New York & London
2019 INVESTOR DAYS 58
Louis Vuitton, Westfield LondonPlatform strategy
Dining
Bringing food to the forefront
with a unique, chef-led
culinary collection
2019 INVESTOR DAYS 59
Eataly, Westfield Century CityOur first year in international leasing
Promoting
Developed Continued
Set up Created new URW
new URW discussions
new ambition new structure network
culture with new
to global
leading brands
market
2019 INVESTOR DAYS 60
Westfield London, 10th anniversaryFRENCH PORTFOLIO IN MOTION
Case studies: Adapting to customer expectations
Average projects ROI 7.0% - 7.5%
2019 INVESTOR DAYS 62Vélizy 2: Adapting to customer expectations C A S E S T U D Y
A86
Ideal location
N118
10 km from Paris
A86 and N118 highways
Opening Retail extension
1972 2022
Dining and leisure extension
2019
pre 2019 2019 2022
GLA (sqm) 104,000 123,400 141,800
Units 168 191 245
2019 INVESTOR DAYS 63A new iconic cinema
18
screens
3,800
seats
1.8 Mn
expected tickets/year
x6
tickets vs. old cinema
2019 INVESTOR DAYS 64Dining and Leisure extension
inaugurated on March 20, 2019 +20,000 sqm
GLA
+23
Restaurants
Fully let
+20.0%(1)
Footfall increase
in entire SC
+16.2% Lfl(2)
Small units sales growth
in entire SC
(1) May 2019 vs May 2018
(2) YTD, from 01/01/19 to 04/30/19 2019 INVESTOR DAYS 65Retail extension to be delivered by 2022
+19,000 sqm
GLA
+54
Units o/w 9 MSU and LU
+550
Parking spaces
Works launched when
Dining & Leisure extension Retail extension
50% preletting
2019 INVESTOR DAYS 66Parly 2: Anticipating customer demands C A S E S T U D Y
Towards A13
Towards Louveciennes/Villevert
Wealthy catchment area
3
Ideal location near Versailles castle
15 km west of Paris
A13 highway
Mall opening Extension 2
2 1969 2017
Extension 1 Cinema opening
1
1987 2019
1987 2019
GLA (sqm) 107,200 120,300
Toward
Versailles
Towards château de Versailles Units 170 187
2019 Investor Days 67Attracting an exclusive New tenants in the retail extension…
and differentiated offer
…reinforcing the existing part
(1)
+7.2% footfall after opening
(1) November 18 vs November 17 2019 INVESTOR DAYS 68Implementing a strong leisure offer:
new UGC Multiplex
Opening
June 25, 2019
12
screens
2,200
seats
700 k
tickets (forecast)
2019 INVESTOR DAYS 69La Part Dieu: growing urban landscape C A S E S T U D Y
Number of workers Number of transport
in the district users per day
+71% +82%
96,000 300,000
56,000 165,000
Office GLA
Opening
1975 +48%
Retail extension 1,700,000
2010 1,150,000
sqm
sqm
Dining and retail extension
2020 Today By 2030
2019 INVESTOR DAYS 71The key destination in Lyon
+31,000 sqm
GLA
(total 161,000 sqm)
+ 65
stores
(total 291)
31 Mn
annual visits today
(no. 3 in France)
2019 INVESTOR DAYS 72Boosting La Part-Dieu food/dining & leisure offers
1 • Food & Dining
2a
1a Dining experience 1b Food Society
+8,000 sqm +2,900 sqm
From 7.6% to 12.7% of GLA 3
1b
1a
2 • Leisure
2a New cinema 2b Other leisure offer
18 screens +6,000 sqm 2b
(vs. 14 today)
From 3.7% to 9.3% of GLA
3 • Retail
Gare SNCF
3 Retail area:
+11,700 sqm
2019 INVESTOR DAYS 73Reinventing dining together: the Dining Plaza
2019 INVESTOR DAYS 75Reinventing dining together: the Food Society
2019 INVESTOR DAYS 76Creating an exclusive mall
with influencer brands
Premium area Lifestyle brands
Attract youngsters, families
and affluent consumers
2019 INVESTOR DAYS 77Case studies: Adapting to retailer challenges
2019 INVESTOR DAYS 78Carrefour Euralille restructuring: addressing our challenges
Before (2014) After (2016)
Primark and 9 new units over 6,850 sqm
2019 INVESTOR DAYS 79Carrefour Euralille restructuring: a success!
1st floor
hypermarket acquired
Unit reshaped
introducing Primark
and 9 units(1)
+4.1 Mn
visits (+33%)
since 2014
+€25 Mn
turnover
in the restructured
area (+31%)(2)
(1) Including one kiosk
(2) Estimated sales for Primark 2019 INVESTOR DAYS 80So Ouest: Replacing underperformers
by successful new concepts
Before After
Level +1
+6%
Footfall
since opening
Level 0
+73%
in sales volume(1)
Level -1 +10%
MGR uplift
(1) Based on projections on R12M basis starting November 2018 compared to M&S sales excluding projection sales from 2019 INVESTOR DAYS 81
John Reed (to open in H1 2020)So Ouest: attracting more influencer brands
Maje, Opened May 2019 Sandro, Opened May 2019 John Reed, Opening H1 2020
2019 Investor Days 82You can also read
