capital markets day… · 2019-06-04 · premium outlets nav jan-12 capital invested income and...

Capital Markets Day

Premium Outlets

3 June 2019

Freeport Lisboa Fashion Outlet

Batavia Stad, Amsterdam

New style coverImage: FLFO009

T:\Corporate Comms (UK & France)\UK\Images\Premium Outlets\2018\HammersonVIA Outlets.zip\HammersonOutlets\Commercial (staged)

Today’s speakers

3

Otto Ambagtsheer CEO – VIA Outlets

David Atkins Chief Executive, Hammerson

Timon Drakesmith CFO and MD Premium Outlets, Hammerson

Natacha Villas-Boas Retail Director – VIA Outlets

Nuno Oliviera Business Director – VIA Outlets

Agenda for the day

01 2019 priorities and update David Atkins – CEO, Hammerson

02 Our premium outlets investments Timon Drakesmith – CFO and MD Premium Outlets, Hammerson

03 VIA Outlets strategy and differentiation Otto Ambagtsheer – CEO, VIA Outlets

04 Retail management Natacha Villas-Boas – Retail Director, VIA Outlets

05 Freeport Lisboa Fashion Outlet Nuno Oliveira – Business Director Portugal, VIA Outlets

Tour of Freeport Lisboa Fashion Outlet

4

2019 priorities

5

Capital efficiency Optimised portfolio Operational excellence

Reducing debt

Pursuing portfolio-wide disposals

Exiting retail parks

Establish City Quarters

Managing structural shift in retail

Establish City Quarters:

• Good progress with City Quarters concept in 2019 with minimal capital outlay

• Phase 2 planning submitted on Dundrum 115 unit residential scheme, consent anticipated for Q3 2019 with start-on-site 2020

• Consultation launched on Martineau Galleries in Birmingham

• Working up further planning submissions in the UK and Ireland for 2019

Update on 2019 priorities

6

Capital efficiency and optimised portfolio

£140m forecast capex

Portfolio-wide disposals:

• Confident in our 2019 disposals target of more than £500m

• Remain in active discussions for over £900m from across the portfolio

• Dallow Road RP, Luton sale exchanged for £24m (7.6% NIY, 6% below Dec 18 value)

Building 5, Dundrum

Leasing:

• Remain focused on space repurposing strategy to ensure optimal brand offer for catchments

• Leasing volumes currently behind 2018, although principal leasing in line with ERV

Managing CVAs & tenant failures:

• 2019 YTD, 35 units impacted by admin or CVAs, <2% of group passing rent, annualised impact of c.£1.5m(1)

• 2019 NRI estimated to be c.£3.5m (c.1% of passing rent) lower

than 2018 due to tenant failures(2)

• Our units are typically less affected by CVAs with 49% in

category A vs. 31% for market(3)

Other: • Target cost savings of £7m p.a. now secured

• As previously guided, LfL NRI expected to be negative for 2019 due to challenging UK occupational market

Update on 2019 priorities

7

Operational excellence

Leon, Dundrum

Kitty Café, Grand Central

Text to be finalised hence it’s not aligned with photos

1 Rent impact from closures and CVA reductions excluding potential re-letting mitigation 2 Estimate based on completed and ongoing CVAs as at 29 May 2019 3 Analysis based on Hammerson leases impacted by CVAs between Dec-17 and May-19, weighted by Hammerson’s share of passing

rent pre-CVA

Premium outlets is a differentiator and source of competitive advantage

8

UK flagship destinations - £2.9bn

France flagship destinations - £1.9bn

Ireland flagship destinations - £1.0bn

Premium outlets - £2.5bn

UK retail parks - £0.9bn

Development & UK other - £0.7bn

29%

19% 10%

25%

9%

8%

Premium outlets

• Very low internet penetration

• Consumer spending on luxury goods growing 3-5% in 2019(2)

• Rental income growth 2019-2020 of 6.2%(3)

• Hammerson’s investments delivered 24% IRR since 2012

Hammerson portfolio(1)

1 As at 31 December 2018 2 Source: Bain 2018 Luxury Goods Worldwide Market Study based on spending on personal luxury goods 2019-25 3 Source: Bain 2018 Luxury Goods Worldwide Market Study. Growth in luxury off-price sales used as a proxy for rental income growth as brand sales drive turnover rent

Landquart, Zürich

Our premium outlets investments

Timon Drakesmith – CFO and MD, Premium Outlets, Hammerson

9

Kildare Village, Dublin

Agenda

01 Market overview

02 Our investments – Value Retail and VIA Outlets

03 Key growth drivers

04 Contribution to Group performance and earnings analysis

05 Future strategy

10

Overview of European outlet market

11 1 Source: FSP’s European Outlet Industry Report March 2017 2 Source: Cushman & Wakefield. Market share by GLA. Total GLA – c. 3.5 million m2

Number of outlets in Europe(1) Leading operators by GLA(2)

Limited number of outlets in Europe with high barriers to entry

High concentration – c. 60% of GLA managed by nine operators

Include Other – is it 213 in total? Unable to find the total number

43

30

25

25

17

13

60 UK

Italy

France

Spain

Germany

Poland

Other

17%

9%

8%

5% 4%

4% 4% 4%

4%

41%

McArthurGlen

Neinver

VIA

Value Retail

Realm

Landsec

ROS

Multi

Concepts &Distribution

Other

circa 3.5million m2

213 outlets

Tiered European outlet market

12

International fashion and luxury brands

Mainstream fashion brand outlets

Low-end discount outlets <€2,000

€2,000–€10,000

€30,000+

Sales densities €/m2

Hammerson is the only listed European REIT with strategic exposure to premium outlets

13

Value Retail

GAV £1.8bn, NAV £1.4bn(1)

Leading operator of luxury Villages across Europe.

9 Villages -189,400m2

Hammerson invested since 1998

Hammerson exposure(2): 39%

Hammerson has significant influence with Value Retail plc Board seat

Growth through active brand management and extensions to existing Villages

3rd European outlet operator by sales

11 outlet centres - 259,000m2

Formed in 2014

Hammerson exposure: 47%

Partnership between Hammerson, APG, Meyer Bergman and Value Retail

Hammerson has joint control

Growth through acquisitions and centre reconfigurations

VIA Outlets

GAV £0.6bn, NAV £0.4bn(1)

TEXT FROM MAXIME’S PPT • Value-add asset

management • Improve brand

mix towards popular, high-productivity fashion and accessory retailers

• Upgrade the provision of food & beverage categories

• Enhance the tourism visits through targeted promotions

1 Hammerson’s share at 31 December 2018. GAV reflects IFRS GAV. NAV reflects EPRA NAV 2 Economic interest in VR at 31 December 2018; see Appendices for VR ownership structure 3 YTD April 2019

YTD Performance(3):

Sales growth +11% (FY18 +8%)

Footfall growth +8% (FY18 +4%)

YTD Performance(3):

Sales growth +9% (FY18 +9%)

Footfall growth +7% (FY18 +4%)

Growth drivers of premium outlets

14

1

2

3

4

Diversity of international visitors

Attractive sales growth for retailers

Strong consumer demand for off-price luxury

Multi-phase extensions

Batavia Stad Fashion Outlet, Amsterdam

5

Active brand and retail management

High barriers to entry

6

Global personal luxury goods off-price store sales(1)

Strong consumer demand for off-price luxury

15 1 Source: 2018 Bain luxury goods study

Let me tell you about outlets market…

Global demand for off-price luxury illustrated by strong brand performance in Outlets

Strong performing brands in Outlets

€31bn 2018

€47bn 2025F

6.2% CAGR

Attractive sales growth for retailers

16

10%

7%

13%

9%

12%

11% 11%

8% 8% 8%

0%

2%

4%

6%

8%

10%

12%

14%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2012 2013 2014 2015 2016 2017 2018

VR Sales (LHS) VIA Sales (LHS) VIA Sales Growth (RHS) VR Sales Growth (RHS)

VR and VIA Sales and Sales Growth 2012 - 2018 (€m)1

Absolute sales growth delivered through active management, acquisitions and extensions

1 Figures have been restated at constant FX rates. Sales growth include assets owned for 24 months. Sales include assets acquired from the date of acquisition.

€m


17

Value Retail & VIA attract a growing, different and broad range of international visitors

Source: Global Blue and Premier Vision

Value Retail Top three source markets in 2018

China

Korea

Taiwan

China

Hong Kong

India

China

Russia

Korea

VIA

Top three source markets in 2018

Brazil

Angola

China

Russia

Israel

China

China

Israel

Egypt

Multi-phase extensions – a source of significant growth

18 Note: TDC (total development cost) at 100%

5,800m2 (33 units) TDC £100m YOC +15% Q4 2017

Batavia Stad, Amsterdam

Hede Fashion Outlet, Gothenburg

5,500m2 (45 units) TDC €26m YOC 11% Q2 2017

Bicester Village, Oxfordshire

La Roca Village, Barcelona

Extensions completed in Bicester and Batavia Stad, on-site extensions in La Roca and Hede

2,700m2 (15 units) TDC €11m Opening Q4 2019 2,500m2 (c.25 units) TDC €50-60m Opening Q4 2020

Significant contribution to Group performance

19

7 year IRR - 24%

214

644

(434)

1,087

1,511

0

200

400

600

800

1,000

1,200

1,400

1,600

Premiumoutlets NAV

Jan-12

Capitalinvested

Income andcapital

distributions

Valuation uplift Premiumoutlets NAV

Dec-18

Premium outlets value creation (£m) (1)

La Roca Village, Barcelona

1 IFRS NAV of Value Retail and VIA Outlets 1 January 2012 to 31 December 2018. Capital invested includes acquisition of VR investment stakes and VIA Outlet acquisitions.

Value Retail earnings analysis

20

Luxury outlets incur higher costs to generate outperformance

GRI: >60% fixed, remainder turnover; includes brand inducement amortisation

Property outgoings: includes significant marketing costs, as well as other property outgoings, e.g. leasing and car park costs, net of service charge income

£m

0 20 40 60 80 100 120

EPRA Earnings

Tax

Interest & other

EBIT

Administration Costs

NRI

Property outgoings

GRI 118

Value Retail – 2018 earnings walk (£m)

Administration costs: roughly one-third local; two-thirds group

Interest & other: secured debt structure; weighted average cost of debt of 2.7%; net of participative loan earnings from investments in LP stakes in the Spanish villages

(37)

81

(38)

43

26

(2)

(15)

Tax: corporation tax ranges from 19% in UK to 33% in France

36.9% EBIT margin

22.1% EPRA Earnings margin

1 All figures at Hammerson share. Source: 2018 Company Annual Reports and Accounts.

VIA Outlets earnings analysis

0 5 10 15 20 25 30 35 40 45

EPRA Earnings

Tax

Interest

EBIT

Administration costs

NRI

Property outgoings

GRI

21

Lower cost model operated below luxury end of premium outlets market

£m

GRI: >70% fixed, remainder turnover; includes car park income and inducement amortisation.

Property outgoings: includes local marketing costs and leasing costs, net of service charge

Administration costs: include Value Retail and Meyer Bergman advisory fees, internal staff costs and group marketing costs

Interest: secured debt structure; weighted average cost of debt of 2.3%

VIA Outlets - 2018 earnings walk (£m)

(11)

43

32

(7)

25

(7)

(2)

15

Tax: corporation tax ranges from 5.5% in Switzerland to 25% in Spain and the Netherlands

58.1% EBIT margin)

35.4% EPRA Earnings margin)

1 All figures at Hammerson share. Source: 2018 Company Annual Reports and Accounts.

Future strategy

22

Vila do Conde, Porto Wertheim, Frankfurt

Value Retail

Continuation of strong organic growth through active brand management and loyalty programme

Growth from delivery of near-term extensions

Continue driving tourism footfall and spend

Open to disposals of Group’s LP stakes at appropriate prices

VIA Outlets

Growth from acquisitions, remarketing, reconfigurations, introduction of new brands and near-term extensions

Broaden attraction to tourism spend

Further strengthen internalised management structure

Ambition for 50/50 joint ownership with APG with enhanced involvement

PRAGUE SEVILLE WROCLAW ZURICH ZWEIBRÜCKEN

AMSTERDAM GOTHENBURG LISBON MALLORCA OSLO PORTO

2

2019 | STRICTLY PRIVATE AND CONFIDENTIAL

VIA OUTLETS:STRATEGY AND DIFFERENTIATION

3


AGENDA

Portfolio Overview

Financials and Trading Performance

VIA Outlets’ Vision

VIA Outlets’ Strategy

Q&A

4


VIA OUTLETS PORTFOLIO

The newest and fastest growing owner/operator In Europe. We are a leadingportfolio of premium fashion outlets across Europe, dedicated to making theexperience worth travelling for.

As retail experts, we combine commercial knowledge, agility and solidexperience to partner with our brands and elevate everything we do.

VIA Outlets was founded in 2014. Its principal shareholders include Dutchpension fund asset manager APG and UK REIT Hammerson plc.

The initial operating partners were outlet centre specialist Value Retail andretail asset manager Meyer Bergman.

A unique partnership of property, investment and retail experts

5


5

2017 WroclawWROCLAW FASHION OUTLET

SevilleSEVILLA FASHION OUTLET

FrankfurtZWEIBRÜCKEN FASHION OUTLET

PortoVILA DO CONDEPORTOFASHIONOUTLET

OsloOSLO FASHION OUTLET

20 14 AmsterdamBATAVIA STAD FASHION OUTLET

PragueFASHION ARENA PRAGUEOUTLET

2015 LisbonFREEPORTLISBOAFASHIONOUTLET

GothenburgHEDE FASHION OUTLETZurichLANDQUART FASHION OUTLET

2016 PalmaMALLORCA FASHION OUTLET


6


6

11 Fashion Outlets

9 Countries

Total GLA 259,637m2

+1,100 Stores

+850 Brands

92% Spot Occupancy


7


Gross Asset Value

Net Asset Value Net Rental Income

Vs. LY Vs. LY

€775 M €78 M

€1.62 Bn

FINANCIALS AND TRADING PERFORMANCE

2018 Financials

8


Brand Sales (Vs. LY%)

Footfall (Vs. LY%) SPV (Vs. LY%)

Vs. LY Vs. LY

+30 M (+3%)

€35 (+6%)

€1.07 Bn (+9%)


2018 Operational KPIs

9


Brand Sales (Vs. LY%)

Footfall (Vs. LY%) SPV (Vs. LY%)

Vs. LY Vs. LY

+9 M (+7%)

€34 (+1%)

€323 M (+8%)


2019 KPIs – April YTD

10


WE WELCOME OUR GUESTS TO EXPERIENCE BEST-IN-CLASS, BEAUTIFULLY LOCAL, PREMIUM SHOPPING DESTINATIONS ACROSS EUROPE

VIA OUTLETS’ VISION

11


VIA OUTLETS’ STRATEGY

Guest and brand engagement

Redefining the outlet shopping businessmodel through a differentiated,beautifully local approach, focused onGuest and Brand engagement

VIA provides exceptional servicesacross the entire customer journey,beginning online, transitioning to ourcentres, and continuing after eachguest’s visit

Organisationally, VIA Outlets operates adecentralised, matrix organisation thatemphasises empowering centre teamsto deliver continued operational growth

12


11 very different outlet centres across Europe, with differences in:

Size / Positioning Challenges / Issues And above all… Opportunities

There is no ‘one-size-fits-all’ model that will work. A tailor-made approach is necessary for each centre to create value and to meet its 5-year Business Plan targets

Redefining the outlet centre Business model; the consumer demands a unique and compelling experience

Brand offer and mix Digital engagement F&B is key Tourism connections Customer services and hospitality

Further extensions where feasible and acquisitions when appropriate


Organisational priorities

13


REMODELING REMERCHANDISING REMARKETING


THE 3 R’s – transforming outlets to premium fashion outlets

14


Upgrade overall in-centre experience by transformingthe centre into an exciting and enjoyable must-visitshopping destination, where leading brands anddiscerning customers want to be

Focus on retail development and upmarket shopfits togenerate improved performance, and offer anelevated customer experience

Centres that have been renovated or expanded(Batavia Stad, Freeport Lisboa, Landquart, andMallorca) have all seen double-digit growth in 2018 vs.2017

VIA has close to €50m of major CapEx workscurrently on-going across the portfolio, with a proventrack-record of success


Remodelling

15


By continually attracting new brands, exiting poor performers and the selective upsizingand downsizing of key units, VIA is driving sales density growth across all Centres

2018 saw a total of 305 leasing deals executed across all 11 Centres. 309 deals have beenbudgeted for 2019

Remerchandising Overview

Action 2018 Executed Deals

2019 Planned Deals

New 96 124Renewal 101 100

Exit 65 41Upsize 25 21

Downsize 18 23TOTAL 305 309


Remerchandising

16


We implement a tailor-made 360˚marketing

approach, targeting aspirational, domestic and

international customers:

Advertising & PR

Digital marketing

In-Centre events

Events, corporate and VIP program

Cross-marketing with key tourism partners

Collaborations with hotels in key cities

Engaging with the travel trade

Collaborations with tourism offices and

associations across Europe


Remarketing

17


Designed to attract and reward our localguests, delivering loyalty to our brands andrepeat visits to the Centre

Fashion Club members earn 5% in credit fromtheir transactions in participating stores.Members receive access to exclusive offers orevents (e.g. Private Sale)

The data collected allows us to ‘know ourguests’ and target them more effectively

Over 500 participating stores

614,000 guest profiles

+32% ATVhigher vsaverage


Remarketing and the fashion club

7


THANK YOU



RETAIL

2


VIA OUTLETS – BUILDING ASSET VALUE

3


Our philosophy relies on the Retail teamproviding services and support to thebrands to maximize performance andcreate memorable experiences

RETAIL

4


Budget

TrainingRetail

Academy Program

VOG & M&G

Customized reports

Data Analytics OMA

Store Audits

RAP

Visual Merchandising

RecruitmentVIA JOBS

Elevate lay out´s with retail

commercial view RD

Pop Up´s

Retail & MKT Calendar

Sales Tools;FC; Anonymous Must; Miles; Tax

Free

Benchmarks & Forecast New

Business

Trends

RETAILdaily basis

management

GUEST CENTRICElevate guest

experience Customer service

BRAND ENGAGEMENT

REMERCHANDISINGElevate

tenant brand mix

Brand´s BFF

Campaigns/ Brand

Activations Events

RETAIL SERVICES

5


We have dedicated and highly experienced retail teams in our centres and ata pan–European level, to support our brand partners and ensure ourcustomers have the best shopping experience possible.

We deliver on-site training and development for store teams, recruitmentsupport for fulfilling staffing needs, visual merchandising services, useful exitsurveys/customer feedback, and regular business reviews both locally and inhead offices

We provide full transparency and simple reporting solutions to allow ourbrand partners to optimize performance in our centre, we create helpfulanalysis of peers in each category to draw attention to opportunities andmaximize future potential

For new Brands and Store openings we have an excellent store design teamand central and local, legal and financial teams available to ensure smoothplanning and successful launch

Our commitment to the success of our brand partners is our primary focus

RETAIL

6


“ People do not buy goods and services.They buy relations, stories and magic. ”

Seth Godin

RETAIL

7


THANK YOU



FREEPORT LISBOA FASHION OUTLETNuno Oliveira – Business Director, Portugal

May 2019

2


FREEPORT LISBOA FASHION OUTLET

LISBON SNAPSHOT

TOURISM

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what is to come / under discussion

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New Brands

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Five Year Plan 2018-2023

Brand sales to increase from €123 million to €200 million

Footfall to grow from 3 million to 3.6 million

SPV to increase from €42 to €55

Sales Density up from €4,192to > €5,700

Average occupancy from 81% to 96% by 2020



THANK YOU!

Freeport, Lisbon

Q&A

1

Freeport, Lisbon

Appendices

Value Retail Villages VIA Outlets centres

Bicester Village, Oxford

GLA: 28,000m2

Boutiques: 161

Batavia Stad Amsterdam Fashion Outlet

GLA: 30,900m2 Units: 130

La Roca Village, Barcelona GLA: 23,400m2 Boutiques: 135

Fashion Arena Prague Outlet GLA: 24,100m2 Units: 99

Las Rozas Village, Madrid GLA: 16,500m2 Boutiques: 98

Landquart Fashion Outlet, Zürich GLA: 21,100m2 Units: 79

La Vallée Village, Paris GLA: 21,900m2 Boutiques: 106

Freeport Lisboa Fashion Outlet GLA: 36,500m2 Units: 119

Maasmechelen Village, Brussels GLA: 19,800m2 Boutiques: 97

Hede Fashion Outlet, Gothenburg GLA: 16,100m2 Units: 52

Fidenza Village, Milan GLA: 20,900m2 Boutiques: 120

Mallorca Fashion Outlet GLA: 30,500m2 Units: 78

Wertheim Village, Frankfurt GLA: 21,200m2 Boutiques: 113

Wroclaw Fashion Outlet, Poland GLA: 13,700m2 Units: 88

Ingolstadt Village, Munich GLA: 21,100m2 Boutiques: 113

Sevilla Fashion Outlet GLA: 15,800m2 Units: 64

Kildare Village, Dublin GLA: 16,700m2 Boutiques: 98

Zweibrücken Fashion Outlet, Germany GLA: 29,100m2 Units: 114

Vila do Conde Porto Fashion Outlet GLA: 27,800m2 Units: 117

Norwegian Outlet, Oslo GLA: 13,300m2 Units: 96

Premium outlets portfolio

2

Value Retail (1) VIA Outlets (1)

2018 2017 2018 2017

Brand sales (€m) (2) 2,903 2,693 1,071 930

Brand sales growth (%) (3) 8 8 9 13

Footfall (m) (2) 36.8 35.4 30.3 28.3

Average spend per visit (€) (2) 79 76 35 33

Average sales density growth (%) (3) 4 5 5 10

Like-for-like net rental income growth (%) (4) 4 14 10 5

Occupancy (%) (5) 97 95 92 91

2018 operational update

3 1 With the exception of LfL net rental income growth, figures reflect overall portfolio performance, not Hammerson’s ownership share. 2017 figures have been restated at 31 December 2018 exchange rates 2 Figures include acquired assets from the acquisition date. 2017 VIA Outlets figures have been restated to reflect more accurate footfall data and include Zweibrücken Fashion Outlet from the acquisition date 3 Figures include assets owned for 24 months 4 LfL NRI growth now excludes the impact of extensions and re-modellings. VIA Outlets 2017 LfL NRI has been restated for a foreign exchange correction (-4% impact to 2017 LfL NRI) 5 2017 VIA Outlets figures have been restated to reflect spot occupancy rather than assets owned for 12 months

2% 3% 4% 5% 6% 7% 8%

€3,000-5,000/m

€5,000-8,000/m

€8,000-39,000/m

Yields on premium outlets

Premium outlet valuations are driven by sales density levels

4 1 ‘Very high’ includes Bicester Village, Fidenza Village, Ingolstadt Village, Kildare Village, La Roca Village, Las Rozas Village, La Vallée Village and Wertheim Village 2 ‘High’ includes Batavia Stad Fashion Outlet, Maasmechelen Village, Mallorca Fashion Outlet, Vila do Conde Porto Fashion Outlet and Zweibrücken Fashion Outlet 3 ‘Medium’ includes Fashion Arena Prague Outlet, Freeport Lisboa Fashion Outlet, Hede Fashion Outlet, Landquart Fashion Outlet, Oslo Fashion Outlet, Sevilla Fashion Outlet and

Wroclaw Fashion Outlet

(1)

2

(3)

Very high (1)

High

Medium

Sales densities illustrate appeal to consumers, brands and investors 2018 weighted average sales density was €10,000/m2, up +5% YoY Weighted average NIY 4.70% Comparable to European prime shopping centres

Sales densities illustrate appeal to consumers, brands and investors 2018 weighted average sales density was €9,800/m2, up +5% YoY Weighted average NIY 4.7% Comparable to European prime shopping centres

High (2)

Medium (3)

2

2

Dec 2018 NIY (%)

Sa

les

densi

ty (€

000/m

2)

Sales growth attractive for retailers

5

7%

18%

10%

5%

13%

8% 9%

5% 5% 4%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2012 2013 2014 2015 2016 2017 2018

VR Average Sales Densities (LHS) VIA Average Sales Densities (LHS)

VIA Average Sales Density Growth (RHS) VR Averge Sales Density Growth (RHS)

VR and VIA Average Sales Densities (€/m2) and Average sales Density Growth 2012 – 2018(1)

Sales densities growth demonstrates underlying sales performance

1 Figures have been restated at constant FX rates. Sales densities include assets owned for 24 months. Sales density growths have been calculated as the weighted average of entities owned for 12 months.

Hammerson’s total investment in Value Retail

1 Total Village ownership calculated as economic entitlement of directly held and indirectly held interests

6

Holding companies 25% equity

Bicester Village

37

50

La Roca Village

29

41

Las Rozas Village

25

38

La Vallée Village

14

26

Maasmechelen Village

14

27

Fidenza Village

22

34

Wertheim Village

33

45

Ingolstadt Village

2

15

Kildare Village

29

41

Village ownership via LPs (%)

Total Village ownership (%) (1)


7

Tax Free Sales (TFS) are a more meaningful contributor to Value Retail

1 Source: Global Blue, (Value Retail Villages and European Snapshot December 2018) 2 Other includes countries which are not in the top 15.

TFS at Value Retail(1) Largest contributor to individual Village TFS

Largest contributor to total Value Retail TFS

Greater China

South and East Asia

Gulf/Middle East

Russia

India

USA

Other(2)

Tax Free Sales at Value Retail

Largest contribut

or to individual Village

TFS

Largest contributor to

total VR TFS

Greater China Kildare Bicester

South and East Asia La Vallée

Bicester

Gulf/Middle East Ingolstadt

Bicester

Russia Fidenza La Roca

India Bicester Bicester

USA Kildare Bicester

Other (2) Las Rozas

La Vallée

VIA(3)

Consumers(2)

China 26%, Israel 14%, Egypt 9%

Russia 31%, Israel 21%, China 10%

Brazil 31%, Angola 25%, China 14%

China 51%, Iran 11%, Switzerland 4%

China 24%, Russia 14%, UAE 6%

Russia 29%, Argentina 16%, Switzerland 12%

Ukraine 18%, Belarus 17%, China 16%

Morocco 70%, Russia 3%, Argentina 3%

China 27%, Kuwait 11%, Russia 10%

Brazil 46%, Angola 23%, Mozambique 4%

China 19%, Germany 11%, Lithuania 10%


8

Value Retail(1) Consumers(2)

China 40%, Hong Kong 6%, India 5%

China 40%, Russia 13%, Korea 9%

China 48%, Columbia 5%, Korea 4%

China 32%, Korea 9%, Taiwan 5%

China 26%, Taiwan 10%, Russia 8%

Russia 35%, China 21%, Ukraine 6%

China 48%, Taiwan 7%, Russia 6%

China 31%, Russia 16%, Taiwan 5%

China 60%, Malaysia 5%, USA 4%

1 In order of opening 2 In order of importance, portion of total TFS as at 31 Dec 2018. Source: Global Blue and Premier Vision 3 In order of acquisition

Value Retail

Bicester

La Roca

Las Rozas

La Vallee

Maasmechelen

Fidenza

Wertheim

Ingolstadt

Kildare

VIA

Batavia

Fashion Arena

Freeport Lisbon

Hede

Landquart

Mallorca

Wroclaw

Sevilla

Zweibrücken

Vila do Conde

Oslo

Top 3 nationalities by contribution to Tax Free Sales as at 31 December 2018

capital markets day… · 2019-06-04 · premium outlets nav jan-12 capital invested income and...

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