Investor Presentation 2010 First Half Results 1
Disclaimer This document has been prepared by ANF Immobilier SA ( ANF Immobilier ) solely for the use of presentations made to investors or analysts. ANF Immobilier makes no representations or warranties that the information contained herein is accurate, correct or complete. The information set out herein is provided as of the date of the presentation and ANF Immobilier is under no obligation to keep current the information contained in this presentation. However, this information is subject to completion and/or revision and ANF Immobilier has the right to change the content hereof, in its sole discretion, at any time without prior notice. This document may contain information regarding current or future transactions as well as pro forma information to show ANF Immobilier as it would be after said transactions have been completed. These forward-looking statements are provided for information purposes only and are not guarantees of future performance. No information provided on this document constitutes, or should be used or considered as, an offer to sell or a solicitation of any offer to buy the securities or services of ANF Immobilier or any other issuer in any jurisdiction whatsoever. 2
First Half 2010 Highlights Significant rental income growth +7.2% like-for-like rental income growth Continued margin improvement H1 2010 EBITDA margin reaches 80.6% Improvement of 2.3 points vs. H1 2009 Recurring cash-flow +7.5% Further progress on 55M disposal program (5% of city-center portfolio) FY 2010 guidance: +10% like-for-like rental growth for city-center properties January - June M H1 2010 H1 2009 % growth Rental income 34.0 32.3 5.4% Marseille 9.5 9.0 6.0% Lyon 8.2 8.0 2.5% B&B 16.3 15.3 6.6% EBITDA 27.4 25.3 8.5% Margin 80.6% 78.3% 2.3 Recurring cash-flow 18.9 17.5 7.5% Change in fair value 9.6 (92.6) NM Net income 27.6 (77.3) NM Per share data ( ) H1 2010 H1 2009 % growth Recurring cash-flow 0.71 0.70 0.4% Average number of shares 26,732,680 24,968,662 7.1% Per share data ( ) 06/30/2010 12/31/2009 % growth Net asset value 38.52 38.91* (1.0%) *Adjusted for the 1-for-20 bonus issue 3
Strong rental growth continued over H1 2010 Prime retail rent increased in Lyon Lyon: latest retail leases in the République area at c. 2,600/sqm (+30% vs. last highest prime rent) Marseille: latest retail leases at base rents (excluding turnover rent) between 500 and 800/sqm Double-digit like-for-like rental growth for city-center portfolio +10.5% like-for-like rental growth for city-center portfolio Rental growth driven by retail in Marseille (+20.4%) and in Lyon (+16.4%) H1 2010 like-for-like rental growth Lyon Marseille City-center portfolio Retail +20.4% +16.4% Office +6.6% +5.2% Residential +8.6% +3.5% Total +14.0% +7.6% +10.5% 4
Continued improvement in profitability M 70 60 50 40 30 20 10 - Gross rental income 59 65 30 23 24 32 34 2005 2006 2007 2008 2009 2010 Half year Full year EBITDA margin 90% 80% 70% 60% 50% 40% 30% 75% 79.6% 80.6% 56% 44% 42% 2005 2006 2007 2008 2009 H1 2010 5
Market outlook A sluggish economic environment Rental indices slowing down Annual change for ILC likely to be negative as at Q2 2010 Slight reduction in rent to expect for B&B portfolio from November ICC ILC IRL Q3 2008 1,594 102.46 117.03 Q4 2008 1,523 103.01 117.54 Q1 2009 1,503 102.73 117.70 Q2 2009 1,498 102.05 117.59 Q3 2009 1,502 101.21 117.41 Q4 2009 1,507 101.07 117.47 Q1 2010 1,508 101.36 117.81 Annual change +0.33% -1.33% +0.09% Decrease in household consumption (-1.4% year on year) Decrease in retail turnover, increase in the occupancy-cost ratio, vacancy risk Retailers more selective: concentration on city-center prime location Stabilization of shopping center footfall (CNCC) May 2010 footfall: -0.3% vs. April 2010, last twelve month -3.0% in continuous improvement Results of 2010 summer sales Good numbers for the first half of July Slower towards the end of the sales period Marseille in line with the national trend 6
View of Rue de la République - Marseille 7
Lyon: Increase in prime retail rent to 2,600/sqm near Place Bellecour Latest market rent evidence Retail : 2,200 2,600/sqm Offices : 230 250/sqm Residential : 11 13/sqm (month) Latest market rent evidence Retail : 600 1,000/sqm Offices : 230 250/sqm Residential : 11 13/sqm (month) ANF Immobilier Assets 8
Marseille Latest transactions show resilient rental levels ANF Immobilier Assets Latest market rent evidence Retail : 500 700/sqm Offices : 160 200/sqm Residential : 11 13/sqm (month) Mazenod Car Park 445 spaces Dames devmt Forbin project Ilot 25 devmt Fauchier project Public Car Park 800 spaces Malaval Car Park 312 spaces Trinquet devmt Segment 1 Segment 2 Segment 3 9
Marseille retail: A high quality environment Breakdown of retail tenants in Segment 1 Services 20% Food 12% Restaurant 10% Health & cosmetics 8% Clothes & fashion 50% 4 advertising campaigns each year Spring, Summer sales, Fall, December Billboards (street, subway), newspaper advertising, street marketing 10
Marseille & Lyon offices: resilient portfolio Stable market rents Lyon: 250/sqm Marseille: 180/sqm Vacancy rate remains at 2% both in Lyon and in Marseille Marseille: in talks to lease over 50% of the space under refurbishment Lyon: space under refurbishment already under offer due to limited supply and strong demand ANF Immobilier s offices portfolio (breakdown by area) Marseille Lyon Under refurbishment 13% 2% Vacant Under refurbishment 5% 2% Vacant 85% Occupied 93% Occupied 11
Marseille residential: significant rental upside potential on vacancy Potential of 3M new rents (assuming rental value of 11.00/sqm per month) Marseille segment 1 and Lyon residential portfolios largely mature Vacancy rate: 6% for Marseille segment 1 and 3% for Lyon Under refurbishment: 14% of portfolio for Marseille segment 1 and 8% for Lyon Most rental upside in remaining segments of Marseille ANF Immobilier s residential portfolio in Marseille (breakdown by area) Segment 2 Segment 3 0% Vacant 2% Vacant Segment 5 1% Vacant 61% Under refurbishment 39% Occupied 33% Under refurbishment 66% Occupied 37% Under refurbishment 63% Occupied 12
Significant potential for reversion = + 9.3M annual rental income +80% rental upside on standard leases maturing before 2013 = + 8.2M Marseille Lyon Area (sqm) Current ( /sqm) Target ( /sqm) Potential ( M) Area (sqm) Current ( /sqm) Target ( /sqm) Potential ( M) Retail 10,882 155 350 2.1 11,636 173 450 3.2 Offices 7,862 121 160 0.3 11,190 135 200 0.7 Residential 35,163 7.12* 11.00* 1.6 8,630 10.30* 11.00* 0.1 * Rentsper month Total 53,907 Marseille 4.1 31,456 Lyon 4.1 Potential rental upside on Loi 1948 regulated leases = + 1.1M Flat-rent lease regime subject to old regulation protective for the tenant in place 67 leases 15,234 sqm average passing rent 4.10/sqm per month 13
Restructuring projects (renovations) Marseille, Plot 20 (Dames) 6,500 sqm mixed-use building (retail & residential) 24 months works Estimated rental income: 1.30M p.a. Marseille, Plot 25 7,000 sqm prime building (retail, residential & offices) 18 months works Estimated rental income: 2.82M p.a. Marseille, Rive Neuve 3,200 sqm mixed-use building 18 months works Estimated rental income: 0.75M p.a. Green building Marseille, Pavillon Vacon 5,500 sqm mixed-use building (retail & residential) 12 months works Estimated rental income: 2.20M p.a. Lyon, Mansardes Attics refurbishment with 5,100 sqm of new residential space created Works started on site, 1,636 sqm already completed, delivery due for completion in 2011 (4,900 sqm) Estimated rental income: 1.1M p.a. Rive-Neuve Plot 25 Dames 14
Development projects (on-going) Marseille, Trinquet Serviced apartments complex (142 units) Delivered on schedule in October 2009 Leased to Adagio (JV between Accor and Pierre & Vacances) Financing secured with Calyon debt facility at Euribor + 50bps Rental income: 1.1M p.a. Marseille, Fauchier Office (13,000 sqm) and residential (4,000 sqm) building Works started on site, expected completion on schedule during H2 2010 Financing secured with Calyon debt facility at Euribor + 50bps Residential component already pre-sold Rental income (offices only): 2.1M p.a. pre-leased to the City of Marseilles Marseille, Forbin B&B hotel (125 rooms) Financing secured with Banque Martin Maurel at Euribor + 120bps Expected completion during H2 2010 Rental income: 0.6M p.a. From 1,637 sqm to 7,100 sqm Trinquet From 4,336 sqm to 17,200 sqm Fauchier From 870 sqm to 2,975 sqm Forbin 15
Development projects (near term) Marseille, Rabateau 3,900 sqm office development 12 months works Estimated rental income: 0.60M p.a. Green building Marseille, Euromed Plot 34 26,000 sqm mixed-use project (offices, hotel, residential & retail) 30 months works Estimated rental income: 4.00M p.a. Green building Rabateau Plot 34 16
Future development pipeline (long term) Marseille, Desbief 20,000 sqm office development 30 months works Starting Q4 2013 Estimated rental income: 5.30M p.a. Lyon, TAT Whole block restructuring 31,000 sqm 30 months works Starting after legal issue is resolved Estimated rental income: 7.00M p.a. Desbief TAT 17
Development pipeline M Total cost Completion Yield on cost Delivery Delivered Joliette 6 100% 11.8% Delivered Trinquet 17 100% 6.2% Delivered Total delivered 23 100% 7.7% Restructuring Built 324 73% 2011-2013 Rive Neuve 9 8% 2011-2013 Pavillon Vacon 17 59% 2010 Plot 20 19 14% 2011-2013 Plot 25 20 35% 2011-2013 Mansardes 15 49% 2011-2013 Total restructuring 404 65% 6.5% Breakdown of developments by delivery date (% of total cost) Long term 33% Delivered 5% 2010 11% Development Fauchier 23 84% 9.1% 2010 Forbin 6 69% 9.4% 2010 Rabateau 7 6% 7.9% 2011-2013 Plot 34 57 9% 7.0% 2011-2013 Total development 93 31% 7.8% Long term development TAT 78 33% 9.0% Long term Desbief 60 11% 8.8% Long term Total long-term development 138 23% 8.9% 2011-2013 51% Total 659 53% 18
Restructuring & developments lead to a secured rent forecast Increase of +64% in like-for-like rental income + 41M additional rents to be negotiated within 4 to 5 years 110 Developments + 21M 100 Restructuring + 20M 12 90 4 5 80 70 3 4 4 1 8 60 M 50 40 30 65 65 68 72 76 78 86 89 94 106 20 10 0 2009 Rents Vacancy Lyon Reversion Marseille Reversion Loi 1948 Renovation On-going Near term Long Term Target 19
A 55M disposal plan: 5% of city-center portfolio Disposal program of 55M of properties with expected long-term returns below ANF Immobilier s requirements Lyon: disposal of low-yielding properties Marseille: disposal of assets located in non-core areas 15,814 sqm already signed or secured for 38.4M Area (sqm) Disposal price ( M) Lyon 5,925 18.5 Marseille 2,525 4.9 Total signed 8,450 23.4 Marseille 7,364 15.0 Lyon - - Total secured 7,364 15.0 Total 15,814 38.4 A further 9,379 sqm in Marseille earmarked for disposal 20
Capitalization rate compression Portfolio valuation as at June 30, 2010 City-center portfolio Cap rate compression during H1 2010 for: Properties located in Marseille segment 1 Prime retail, residential and offices in Lyon Average cap rate on portfolio Marseille Lyon Retail 5.80% 5.70% Offices 6.60% 6.40% Residential 4.60% 4.60% Transactions benchmark Lyon: Le Progrès (Retail + Office) sold at 5.5% cap rate Lyon: Axa (office) sold at 6.0% cap rate B&B hotels portfolio Cap rate compression for properties located in city centers (-20 to -30 bps) Average cap rate = 6.70% (vs. 6.80% as at December 31, 2009) Cap rates used band between 6.10% - 7.30% ; depending on city profile, location and new concept transition 21
Value increase over 6 months Portfolio valuation as at June 30, 2010 ( M) 06/30/2010 12/31/2009 % growth Marseille completed properties 489 488 0% Lyon completed properties 359 344 4% Completed properties 848 832 2% Development projects 205 198 3% City-center 1,054 1,030 2% B&B hotels 489 474 3% Total real estate portfolio 1,542 1,504 3% Average capital values (retail, offices, residential, excluding developments) Lyon= 4,621/sqm Marseille= 2,606/sqm 22
NAV = 38.52 per share (excluding fair value of hedging instruments) Increase of 0.97 per share before dividend distribution Note: restated for the 1-for-20 bonus issue Before the 2010 distribution, NAV increase of + 0.97 per share or +2.5% over 6 months (+ 1.95 per share or +5.1% over 1 year) Liquidation triple net asset value (NNNAV) = 36.90 per share ( 37.82 per share as of 12/31/2009) 23
Attractive cost of financing & significant covenants headroom Lyon & Marseille development = 250M facility Corporate credit Margin = Euribor + 50bps hedged at 4.36% Unused portion of credit facility = 50M Covenants 30 Jun 10 31 Dec 09 30 Jun 09 31 Dec 08 Loan-to-value ratio (LTV) 30.6% 28% 28% 24% < Covenant 50% 50% 50% 50% Asset value Headroom 38% B&B developments = 257M facility Mortgage Margin = Euribor + 55bps hedged at 4.75% Unused portion of credit facility = 11M Interest cover ratio (ICR) 3.16 x 3.36 x 3.36 x 3.33 x > Covenant 2.00 x 2.00 x 2.00 x 2.00 x EBITDA Headroom 37% 95% of credit lines fully swapped Pre-hedging of unused credit facility Other financial debts = 30M Unused portion of credit facility = 10M No refinancing until 2014 Net financial debt = 472M as of June 30, 2010 24
Stock price evolution per share 34.00 Volumes ANF EPRA SBF 250 CAC 40 100,000 32.00 80,000 30.00 28.00 60,000 26.00 40,000 24.00 22.00 20,000 20.00 January-10 February-10 March-10 April-10 May-10 June-10 July-10 August-10 - Volume Number of shares Source : Bloomberg Data at June 11 2010 25
Conclusion Resilient real estate markets in Marseille and Lyon despite challenging economic climate ANF Immobilier remains well placed to deliver superior growth: Capture reversionary potential on existing leases Lower the vacancy rate Implement active leasing strategy Complete development and refurbishment projects Sell mature properties FY 2010 guidance: +10% like-for-like rental growth for city-center properties Medium-term guidance reiterated: 106M annual rental income within 4 to 5 years (vs. 65M in 2009) 26
Appendices 27
Summarized financial statements January - June M H1 2010 H1 2009 % growth Rental income 34.0 32.3 5.4% Net operating expenses (2.1) (2.6) (19.2%) Administrative expenses (4.5) (4.4) 2.3% EBITDA 27.4 25.3 8.5% Financial expenses (8.5) (7.7) 10.6% Taxes - - - Recurring cash-flow 18.9 17.5 7.5% Change in fair value 9.6 (92.6) NM Other items (0.8) (2.3) NM Net income 27.6 (77.3) NM Interest cover ratio 3.16x 3.36x Recurring cash-flow per share ( ) 0.71 0.70 0.4% Average number of shares (M) 26.7 25.0 January - June M 06/30/2010 12/31/2009 % growth Real estate portfolio 1,543.1 1,504.8 2.5% Net financial debt (471.6) (422) 11.7% Other debts (18.3) (21.5) (14.7%) NAV 1,053.2 1,061.0 (0.7%) Fair value adjustment of swaps (44.3) (29.6) 49.4% Deferred taxes - - - NNNAV 1,008.9 1,031.4 (2.2%) Loan to value ratio 30.6% 28.1% Net asset value per share ( ) 38.52 38.91* (1.0%) Triple net asset value per share ( ) 36.90 37.82* (2.4%) Period-end number of shares (M) 27.3 27.3* *Adjusted for the 1-for-20 bonus issue 28
Restructuring: Marseille segment 1 Marketability of the Rue de la République: a reality H&M Sept 07 Starbucks May 10 Mango Aug 08 Sinéquanone Nov 07 Vert Baudet Sept 07 Planet Jog Jul 2008 Tally Wejll Jul 08 France Arno Mar 10 Tps d Cerises Jul 08 Banette Jun 09 Maison Glace Jun 09 DPAM Mar 08 Hylton Oct 07 Arena May 10 Optic 2000 Dec 08 Bouygues Tel Septembre 08 Le Moment Sept 08 Connexion Dec 08 Dubble Mar 2009 Célio Public car park Mar 08 800 spaces C Agricole Sept 06 Jules Jun 08 Triumph Dec 08 H&M Enfants Apr 09 Olivers&Co 2010 Crocs Jun 09 Frutti Bar Mar 2010 Eté en vacances May 10 LaPoste Q3 10 Orange Apr 09 Occto Jun 09 Desigual Nov 08 Puma May 08 Esprit Aug 08 Sephora Nov 07 Promod Q310 C Epargne Sept 07 Opened Signed Prospect Opening completed 29
Marseille - European capital of culture 2013 A major advantage for ANF Immobilier E C I G B F A H ANF Immobilier developments A. Trinquet F. Dames B. Fauchier G. Plot 25 C. Forbin H. Pavillon Vacon D. Rive Neuve I. Desbief E. Plot 35 D 1 million of tourists expected in 2011 30
Portofolio valuation as at 30 June 2010 Improvement in capital values * Like-for-like basis 31
Capitalization rate compression Portfolio valuation as at June 30, 2010 Capitalization rates (excl rights) Lyon Retail Offices Residential Loi 48 Jun 2010 5.58% 6.37% 6.74% 7.27% 4.78% 5.04% 2.39% 4.78% Dec 2009 5.75% 6.40% 6.90% 7.70% 4.80% 5.20% 2.40% 4.95% Jun 2009 5.75% 7.45% 6.90% 7.70% 4.50% 5.20% 2.15% 4.95% Marseille Dec 2008 5.45% 6.90% 6.25% 7.20% 4.00% 4.65% 2.15% 4.40% Retail Offices Residential Loi 48 Jun 2010 5.84% 7.81% 6.90% 7.81% 4.78% 5.47% 2.39% 4.94% Dec 2009 6.00% 8.00% 7.20% 8.00% 4.80% 5.60% 2.40% 5.30% Jun 2009 5.85% 8.00% 7.20% 8.00% 4.50% 5.60% 2.15% 5.30% Dec 2008 5.75% 7.70% 6.65% 7.45% 4.00% 5.05% 2.15% 4.80% 32
Value increase over 6 months Portfolio valuation as at June 30, 2010 Marseille: Capital values as at June 30, 2010 Segment 1 Other Retail 7,819 9,870/sqm 4,824 5,736/sqm Office 2,085 2,147/sqm 1,500 2,192/sqm Residential 2,548 2,648/sqm 1,800 2,206/sqm Marseille: Capital values as at December 31, 2009 Segment 1 Other Retail 7,574 9,683/sqm 4,146 5,421/sqm Office 2,033 2,104/sqm 1,135 2,015/sqm Residential 2,501 2,622/sqm 1,503 2,177/sqm Lyon: Capital values as at June 30, 2010 Lyon: Capital values as at December 31, 2009 Retail 12,772 14,808/sqm Retail 12,169 12,736/sqm Office 2,722 2,737/sqm Office 2,546 2,554/sqm Residential 2,580 2,702/sqm Residential 2,248 2,499/sqm 33
ANF Immobilier: Three assets Breakdown of 2009 rental income Hotels 48% Offices 7% Retail 12% Lyon 24% B&B Hotels 48% Residential 5% Offices 5% Others 2% Retail 10% Marseille 28% Residential 11% 34
B&B Hotels 167 quality locations in France 12,124 rooms 35
History Before 2002 In 2002 In 2004 In 2005 SCHP and partners SCHP & partners SCHP & partners SCHP & partners Rue Impériale de Lyon Sté Immobilière Marseillaise Rue Impériale Eurazeo Real estate Eurazeo Eurazeo Subsidiary Subsidiary Eurazeo Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary ANF Immobilier Subsidiary Subsidiary Subsidiary The companies Rue Impériale de Lyon and Société Immobilière Marseillaise were holding companies for the investment companies Eurafrance and Gaz&Eaux Income from investments was much greater than that from real estate which was then used as capital gains provision After restructuring its capital, Eurazeo inherited real estate assets from its parent companies and decided to manage them through a dedicated subsidiary, ANF Immobilier 36
Diversified risk mix City-center of Marseille (172,000 sqm) - Value = 621M (June 30, 2010) 179 buildings Office Retail Residential Total Devpmt Surface area 30,000 sqm 42,000 sqm 100,000 sqm 172,000 sqm 93,000 sqm Number of lots 151 266 1,366 Occupancy rate* 77%*** 85% 80% FY 2009 rents ( M) Other leases = 1.629 2.949 6.652 6.929 18.159 City-center of Lyon (88,000 sqm) Value = 433M (June 30, 2010) 56 buildings Hotel buildings 166 B&B hotels in France 12,124 rooms Office Retail Residential Total Devpmt Surface area 30,000 sqm 25,000 sqm 33,000 sqm 88,000 sqm 36,500 sqm Number of lots 190 142 354 Occupancy rate* 99% 98% 78%** FY 2009 rents ( M) Other leases = 0.088 4.570 7.840 3.464 15.963 FY 2009 rents: 30.938M Asset value 489M (June 30, 2010) * Including technical vacancy comprising available plots with work being carried out or work planned ** Areas voluntary kept vacant in connection with TAT and Mansardes developments *** Areas voluntary kept vacant for further development or residential compensation 37
Leases maturity Marseille Sqm 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 <2010 2011 2012 2013 2014 2015 2016< Offices Retail Residential 38
Leases maturity Lyon Sqm 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 <2010 2011 2012 2013 2014 2015 2016< Offices Retail Residential 39
Restructuring Lyon: TAT (31,000 sqm) Estimated lease income: 7M ANF Immobilier property 12,350 sqm Surface area created 3,300 sqm Surface area acquired 7,915 sqm ANF Immobilier 23,566 sqm Printemps 6,500 sqm Still to acquire 900 sqm i.e. 2.9% of the entire project Suggested project Printemps lease Today Tomorrow Bat A 5,500 sqm Bat B 4,500 sqm 10,000 sqm? Rents 450,000 2,800,000 Retail @ 450/sqm Buildings occupied by Printemps Printemps lease expired on June 2006: Litigation to establish new rent Retroactive rents from June 06; One-off 7M at expert value on counting On May 29, 2009: report ordered by the Court on the rental value for renewal favorable to ANF Immobilier 40
Stockholding Number of shares 27,453,778 Free float 26% Tresuary share 0% THS 5% Generali 5% Caisses d'epargne 5% Eurazeo 59% In December 2009, Eurazeo sold c.1m of shares to comply with SIIC fiscal requirements 41