2014 full-year earnings Paris, February 20, 2015 Bernard Michel Chairman Philippe Depoux CEO Nicolas Dutreuil CFO
CLIQUEZ POUR MODIFIER LE STYLE DU TITRE Gecina in a nutshell
Gecina in a nutshell: a French leader on offices Key facts & figures Ranking by office GAV in France as of December 2014 (in bn ) Total portfolio 10.3bn The #1 office REIT in France with a 6.4bn portfolio 40% of the offices portfolio in the Paris CBD 96.4% occupation rate at December 31, 2014, very close to theoretical maximum level Positioned on the #1 office market in Europe: c.12m inhabitants in the Paris region (vs. c.8m in Greater London), large share of executive staff, region accounting for 30% of French GDP (vs. 21% for Greater London) LTV still moderate at 36,7% (end 2014) Standard & Poor s BBB+/ outlook Stable, Moody s Baa1/ outlook Stable 6.5 4.3 4.5 3.3 Portfolio breakdown by GAV (end-2014) 10.3bn Share price performance since January 2013 (rebased) Other offices 8% Traditional residential 25% 50% 40% Offices 63% Western Crescent 21% Paris 34% Student accomodation 2% Healthcare 11% 30% 20% 10% 0% -10% 31-déc. 31-janv. 28-févr. 31-mars 30-avr. 31-mai 30-juin 31-juil. 31-août 30-sept. 31-oct. 30-nov. 31-déc. 31-janv. 28-févr. 31-mars 30-avr. 31-mai 30-juin 31-juil. 31-août 30-sept. 31-oct. 30-nov. 31-déc. 31-janv. GECINA SIIC France EPRA EUROP 3
An emblematic portfolio Le Building 37, rue du Louvre 75002 Paris Horizons 30, cours de l île Seguin 92100 Boulogne-Billancourt Place Vendôme 10-12, place Vendôme 75002 Paris 101 Champs Elysées 101, avenue des Champs Elysées 75008 Paris
Contents 1/ 2014-2015 market perspectives 1.1/ Paris office market remained challenging in 2014 1.2/ but Gecina achieved a solid performance 1.3/ Improved outlook for 2015? 2/ Gecina s main achievements in 2014 2.1/ Key figures and guidance 2.2/ Asset rotation 2.3/ Lease management 2.4/ Diversification portfolios 2.5/ CSR process 2.6/ Financial achievements 3/ FY 2014 earnings 3.1/ Rental income 3.2/ Recurrent net cash flow 3.3/ Appraisal values and NNNAV 4/ Strategic update: harnessing value creation potential 5/ Appendices 4.1/ One vocation: leading the Paris Office market 4.2/ One priority: harnessing value creation potential 4.3/ Stabilized shareholding structure supporting our strategic views 4.4/ Operational reorganization in line with these ambitions 5
CLIQUEZ POUR MODIFIER LE STYLE DU TITRE 2014-2015 market perspectives
Paris office market in 2014 remained challenging Still challenging in 2014, but certain signs suggesting confidence for the future Investments: back to the cyclical highs while take-up returned to normalized levels 35,0 30,0 25,0 Bn Other regions Paris region +40.6% in Paris region +30.4% in other regions 600 000 500 000 400 000 2014 Average 2004-2013 20,0 15,0 300 000 10,0 200 000 5,0 100 000 0,0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BNP Paribas Real Estate Prime rents decreased slightly 0 Paris Paris South Paris North La Défense Western Center West (incl. CBD) East Crescent Inner Rim Outer Rim Source: CBRE while vacancy rates increased marginally from 7% to 7.2% 14 in % 12 10 8 6 Max Average (2004-2013) 2014 Source: Cushman & Wakefield 4 2 Min 0 Paris Center Paris south Paris North La Défense Western west East Crescent Inner Rim Outer Rim Source: CBRE 7
but Gecina achieved a solid performance Gecina achieved a solid performance in 2014 despite a challenging rental market environment Vacancy rates reached their lowest levels since 2009 10,0% 9,0% 8,0% 7,0% 7.2% 6,0% 5,0% 4.7% 4,0% 3,0% 2,0% Gecina's office portfolio 1,0% Paris Region 0,0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: CBRE, Gecina and a significant reduction in the cost of debt positive organic rental growth on offices Despite weak indexation and limited negative reversionary potential 6,0% +3.4% 4,0% +0.7% 2,0% -2.8% -3.1% +0.4% 0,0% -2,0% -4,0% -6,0% 2010 2011 2012 2013 2014 Index Vacancy Reletting & renegotiations Other Source: Gecina drove a solid performance in recurrent net earnings 44% 4,2% in m 316.6 42% 40% 38% 36% 34% -40bp in 2014 3.6%* 4,0% 3,8% 3,6% 3,4% 308.6 311.1 Underlying growth +5.9%* 293.0 310.1 +1.8% as published 32% 3,2% 30% 2011 2012 2013 2014 Source: Gecina LTV Average cost of debt Cost of debt including undrawn credit line : 3.6%. Cost of drawn debt : 3.0% 3,0% * Excluding the impacts of non-strategic disposals (Beaugrenelle in 2014, hotels in 2013), assuming a 40% LTV. 8
Paris office market in 2015: improved outlook? Some silver linings for 2015 Historically high spread over bond yields while new/refurbished supply is becoming scarce 7% Volume of definite supply > 10,000 sq.m Average volume of operations above 10,000 sq.m operations in the last 5 years 6% Average volume of operations above 5,000 sq.m operations in the last 5 years 5% 4% 3% 4.0% 4.0% 305bp 6.05% 3.75% 535bp 1,101,619 894,723 sq.m 648,053 sq.m 2% 1% 0% Prime Paris CBD real estate yields French 10-year gvt bond Gecina - Offices net yield 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sources: Bloomberg, CBRE, Insee, Gecina 0.7% 443,320 406,713 2015 2016 2017 Source: Cushman & Wakefield Paris region office markets expected to at worst flatten out in 2015 but moderate macro recovery could enhance the picture Under the following cautious assumptions for 2015 GDP growth: +0.8%/ Inflation: +0.5%/ French sovereign bond yield flattening out at 0.7% IEIF Institute expects the Paris office market to adjust as following: Investments: roughly in line with 2014 levels Take-up to recover Absorption capacity to remain stable Vacancy rates to increase by 30bp Market rents to contract slightly (-1%) If assuming positive macro inputs Decreasing oil prices Cheaper Euro exchange rates Lower interest rates Potential stimulus from the ECB QE plan to increase GDP prospects and tenants margins by H2-2015 Paris region office market expected to deliver a positive surprise Any moderate increase in GDP growth forecasts would have a significant impact on market equilibrium According to the IEIF Institute, higher assumptions for GDP growth by 2017 (+0.5pts higher) could drive rental levels up by at least +2% already on average for the Paris Region in 2015 9
CLIQUEZ POUR MODIFIER LE STYLE DU TITRE Main achievements in 2014
Key figures for 2014 and guidance In million euros FY 2013 FY 2014 FY 2015 guidance Gross rentals 588.9 571.0 EBITDA 480.3 467.6 EBITDA margin 81.6% 81.9% Net financial expenses -162.7-146.6 Recurrent net income - Group share 311.1 316.6 Recurrent net income (yoy growth) +1.8% Recurrent net income (underlying growth) +5.9%(*) As a minimum flat given 800m disposals, or over +2% excluding Beaugrenelle impacts Could be increased with additional investments expected this year LTV 38.7% 36.7% < 40% Average cost of debt (all in) 4.0% 3.6% Further reduction in average cost of debt by -40bp Average cost of drawn debt 3.5% 3.0% Disposals 846 613 (Group share) 800m (> 40m already achieved) Investments 580 277 188m already secured*** NNNAV (EPRA) 102.2 101.2 Dividend 4.6 per share 4.65 per share (**) Key ESG figures % of office buildings with HQE Operations certification Energy consumption trend for office assets in kwhpe/sq.m/year(primary energy at constant climate) FY 2016 guidance 44% 63% 80% 364 367 284 * Restated for the impacts of Beaugrenelle and the hotel portfolio, assuming an LTV of 40% on these disposals ** Submitted at the AGM in April 2015 *** Acquisition of City 2 in Boulogne-Billancourt for 188m, to be delivered end 2015, with a new lease starting by April 2016 11
Main achievements in 2014: asset rotation Net seller in 2014 Change in asset rotation (Group share) Main acquisition 1500 50,0% 7.3% 4.1% 7.9% 11.8% 7.8% 5.9% 1000 0,0% Acquisitions: 49% ( 135m) Ongoing projects: 34% ( 95m) 500 312 781 860 426 580 277-50,0% Capex: 17% ( 47m) 0-500 -756-482 -926-1 303-846 -613-100,0% Residential: 13% ( 80m) Offices (primarily Beaugrenelle): 86% ( 527m) -1000-150,0% Healthcare: 1% ( 6m) -1500 2009 2010 2011 2012 2013 2014 Investments Disposals Asset rotation as % of GAV Main disposal achievements -200,0% Acquisition of Le France in June 2014 - Acquisition price: 133m (including duties) - 6.45% net yield BMW building in Madrid (sold in January 2015) - Sales price 41m - 18% above last appraisal value Paris Sebastopol (Offices) - Sales price 11m - 45% above last appraisal value Beaugrenelle: sold in April 2014 - Sales price 688m (excluding duties) - Total capital gain over construction costs: +41% - 4.1% exit yield Exclusively unit-based residential sales (vacant & occupied) - Sales price 96m (o.w 16m committed) - 33% premium vs block appraisal values 12
Main achievements in 2014: asset rotation Disposals achieved in 2014: 613m By asset type Premium vs last appraisal values & net exit yields Healthcare 1% Residential 13% Offices 2% Average exit yield 4.1% 33% 41%* Exit yield 3.0% Exit yield 4.2% Exit yield 7.3% Beaugrenelle 84% 1% 7% Residential (unit) Offices/ Beaugrenelle Healthcare * Assuming the total capital gains over construction costs for Beaugrenelle Investments achieved in 2014: 277m By asset type By type of project Offices Student accommodation Healthcare 17% Acquisitions Capex Completed projects 30% Average yield 6.45% 18% Ongoing projects 49% 65% 4% 17% 13
Main achievements in 2014: asset rotation Completions in 2014 and new projects secured Assets delivered New projects secured (excl. city 2, secured in feb.2015) Saint-Denis Pleyel (student accommodation) - Total investment: 18m - Yield on cost: 6.7% - Total area 4,518 sq.m, 198 beds - Delivered in July 2014 Paris Lecourbe (student accommodation) - Total investment: 17m - Yield on cost > 5.2% - Total area 2,674 sq.m, 132 beds - Delivered in August 2014 La Grande Halle in Lyon - Gecina s stake: 60% - Tenant: fully pre-let to EDF, 9-year firm lease - Total investment: 55m - Yield on cost: 7.9% - Total area: around 20,000 sq.m - Expected delivery Q2-17 Puteaux Valmy (student accommodation) - Total investment: 21m - Yield on cost: 6.1% - Total area 3,937sq.m, 188 beds - Expected delivery: 2017 14
Main achievements in 2014: asset rotation more to come: total pipeline of around 1.7bn Project Location Delivery date Lettable area (sq.m) Total Pipeline 302,926 1 708 726 7.0% 5.6% (*) Controlled projects: potential projects identified by Gecina s Asset Management teams and fully controlled by Gecina. (**) Including value of the lands and of the existing buildings when redevelopments 1.3bn identified through the Asset Review process (62% of Gecina s portfolio audited by end-2014, 100% targeted by end-2015) Total investment** Est. yield on cost ( m) Still to be invested ( m) (net) Committed Offices 2015-2017 44,165 225 115 7.3% Student accommodation 2015-2018 27,751 133 94 6.4% Healthcare 2015 32,541 82 13 6.6% Exit yield on delivery (exp.) Total committed 104,457 440 221 6.9% 5.5% Controlled* Greenfield Pre-letting required 2017-2020 56,404 195 188 8.9% 6.5% Redevelopments Tenant's departure likely 2019-2022 85,994 558 145 6.8% 5.8% Redevelopments Tenant's departure uncertain 2020-2023 54,131 515 172 6.4% 5.0% Total controlled 198,469 1 268 496 7.0% 5.6% Total pipeline moving close to 1.7bn Pipeline by maturity and project type* (investments in m) 1,268m 350 300 250 200 Controlled (linearized) - Redevelopments Controlled (linearized) - Geenfield Committed 440m Controlled Committed 150 100 50 Total investment 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 * Assuming City 2 in 2016 for 188m 15
Main achievements in 2014: rental management Reversionary potential remained under control in 2014, while visibility is good again for 2015 Limited negative reversionary for offices in 2014 Breakdown of like-for-like office rental growth* 6,0% +3.4% +0.3% 4,0% +0.7% +1.7% -2.8% 2,0% +0.4% 0,0% -3.1% +0.8% +2.8% +2.5% +0.3% 0,5% 0,0% +1.0% +0.8% -0.2% -1.3% -1.1% -0.7% -2,0% -4,0% -3.4% -3.7% -0.9% -0.2% -0.6% -6,0% 2010 2011 2012 2013 2014 Index Vacancy Reletting & renegotiations Other * excl. AON impact in 2011 and 2012 Upcoming break-up options: mostly in well-balanced areas Efficient lease management driving vacancy rate down further 14,0% 11.7% 12,0% 10,0% 8,0% 7.2% 6,0% 5.8% 4,0% 4.7% 2,0% 0,0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Gecina's office portfolio Paris Region Western Crescent Paris CBD 2014 achievements and lease maturity m 100 90 80 70 60 50 40 30 20 10 0 Break-up options other areas Break-up options Western Crescent Break-up options rest of Paris Break-up options Paris CBD 67% 56% 2015 2016 2017 2018 2019 2020 2021 > 2021 By end-2014, Gecina had let nearly 84,000 sq.m of offices, factoring in new lettings, relettings, renegotiations and renewals, Representing around 27m of annualized economic rent 7 years weighted average maturity on new lease signed in 2014 Average residual lease maturity (next break): 4.0 years Average residual lease maturity (end of lease): 5.4 years Rental management policy anticipating market trends Rental management tailored to current market conditions Pragmatic for the Inner Rim More aggressive for Inner Paris, particularly in the CBD Keeping the occupancy rate at current standard (>95%), excluding strategic vacancies 16
Main achievements in 2014: rental management Main rental and letting challenges Analysis of office break-up options in Paris (by 120 area 000sq m and average yearly rent) 800 000 Analysis of office break-up options in Paris Region (by area and average yearly rent) Of which 5,300 sq.m still at risk 100 000sq m 80 000sq m 60 000sq m 40 000sq m 20 000sq m 0sq m 46,205 sq.m 100,188 sq.m 37,142 sq.m 43,767 sq.m 40, 498 sq. m 4,745 sq.m 505 543 7,215 sq.m 557 714 554 3,861 sq.m 485 520 615 2015 2016 2017 2018 2019 2020 2021 > 2022 700 000 600 000 Of which 43,000 sq.m 500 000 still at risk 400 000 300 000 200 000 100 000 0 100 000sq m 90 000sq m 80 000sq m 70 000sq m 60 000sq m 50 000sq m 40 000sq m 30 000sq m 20 000sq m 10 000sq m 86,781 sq.m 85,183 sq.m 0sq m 51,394 sq.m 25,630 sq.m 26,433 sq.m 19,717 sq.m 83,126 sq.m 68,323 sq.m 336 310 428 294 409 524 349 369 2015 2016 2017 2018 2019 2020 2021 > 2022 800 000 700 000 600 000 500 000 400 000 300 000 200 000 100 000 0 Major vacancy challenges for the office portfolio in 2015 Assets Location Completion or vacating Vacant space Annualized impact on office vacancy rate Annualized impact on Group vacancy rate Docks en Seine Saint-Ouen Dec. 2013 9,370 0.9% 0.6% Pointe Metro 2 Gennevilliers Dec. 2012 13,300 1.0% 0.6% Horizons Boulogne 2011 2,100 0.3% 0.2% Pointe Metro 2 Gennevilliers 2015e trends for organic rental growth on offices Indexation to slow down (~0% expected) Occupancy to stabilize at current high level Limited negative reversion (~-1% expected) Docks en Seine Saint-Ouen 17
Main achievements in 2014: Diversification portfolios Traditional residential portfolio Offices 63% Healthcare portfolio Offices 63% Traditional residential 25% Student accommodation 2% Healthcare 11% Traditional residential 25% Student accommodation 2% Healthcare 11% Student accommodation portfolio Asset value at end-2014: 2.55bn FY rents for 2014: 126.1m, +0.5% lfl, -4.1% yoy Structurally high occupancy rate (97.7%), long-term visibility for cash flow Conservative valuation assumptions: block value assumed in appraisal value, c.20% below unit-based valuations, and 50% below Paris average market values (Chambre des Notaires de Paris) 80m of residential assets were sold in 2014, 33% above last appraisal values New approach for unit-based residential sales, in line with natural tenant turnover, covering 18% of the total residential portfolio, targeting capital gains of over 35% versus block appraisal values Asset value at end-2014: 1.1bn, 73 assets, with 8,300 beds 2 nd largest player in Europe FY rents for 2014: 73.4m, +1% lfl, -0.8% yoy Annualized rents 73m, rental margin structurally close to 100% (99.2% in 2014) 57% Medicine, Surgery, Obstetrics, 32% Nursing Homes, 5% Psychiatry, 5% Followup Care, 1% Other Long-term leases, residual average maturity (firm): 6.9 years, 7.0% net rental yield Offices 63% Traditional residential 25% Student accommodation 2% Healthcare 11% Asset value at end-2014: 196m 11 assets with 1,769 beds today, targeting 6,000 beds over medium term FY rents for 2014: 9.1m, -0.4% lfl, -2.1% yoy*, factoring in a slight drop in Gecina s occupancy ratio on this portfolio 7ongoing projects representing 1,300 beds (investments for around 133m with yield on cost of around 6.4%) * Change of accounting rules on rental expenses billed to tenants. On proforma basis this figure would be +5,9% 18
Main achievements in 2014: CSR process ESG process in line with Gecina s guidance % of office buildings with HQE Operations certification Energy consumption trend for office assets* 90% 80% 700 000 0% 0% kwhpe/sq.m/year 500 80% 70% 63% 600 000-5% -10% Change vs. 2008 450 400 60% 50% 40% 30% 20% 34% 44% 500 000 400 000 300 000 200 000 100 000-15% -20% -25% -30% -35% 473-19% -23% -22% 385 364 367 284-40% 350 300 250 200 150 100 10% 0% -40% 50 0% 0-45% 0 2008 2012 2013 2014 2016 target ESG process is value enhancing! 2008 2012 2013 2014 2016 target (primary energy at constant climate) * On offices assets, when Gecina controls the technical management Performance spread to the total return (Green certified offices vs. High-end non-green offices) 160bp +140bp 140bp 120bp +110bp 100bp 80bp +70bp 60bp 40bp 20bp bp 2011 2012 2013 Source: IPD 19
Main achievements in 2014: CSR process Process regularly recognized with awards Gecina s award-winning CSR process Gecina recognized as a sector leader by the Global Real Estate Sustainability Benchmark Gecina recognized as a leader by the Carbon Disclosure Project Gecina included in the DJSI World and Europe indices Gecina ranked Silver by EPRA for Best Practices Recommendations Gecina ranked by Novethic as one of the most committed real estate companies in terms of CSR Gecina won the 2014 Trophées des SIIC award in the CSR category Gecina received the 2014 France GBC award for its environmental reporting, for its biodiversity strategy Gecina twice ranked in first place in the 2014 Gaïa-Index rankings 20
Main achievements in 2014: financial structure FY 2013 FY 2014 Change LTV (excluding duties) 38.7% 36.7% -200bp LTV (including duties) 36.7% 34.7% -200bp Standard & Poor s: BBB+/ outlook stable Moody s: Baa1 / outlook stable Net financial debt 4,246m 3,881m - 365m ICR 3.0x 3.2x +0.2x Secured debt ratio 11.7% 11.2% -50bp Average gross debt 4,357m 4,143m - 214m 3.5% 3.0% -50bp Average cost of drawn debt (4.0% all in) (3.6% all in) (-40bp all in) Average length of debt 4.9 years 6.2 years* +1.3 years - Proactive management of the hedging portfolio - New bond issues in July 2014 ( 500m at 1.75%, 7-year maturity) and January 2015 ( 500m at 1.5%, 10-year maturity), benefiting from credit rating upgrades - Other refinancing operations and renegotiation of bank facilities in early 2015 Unused credit facilities 1,665m 1,800m +8% (*) At Feb 15, 2015. Average maturity was 5.0 years at Dec 31, 2014 Ratios Covenant Dec 31, 2014 Loan to value ratio (block) < 55% 36.7% EBITDA excl. disposals/net financial expenses > 2.0x 3.2x Outstanding secured debt/revalued block value < 25% 11.2% Revalued portfolio value, block ( m) > 6,000 8,000 10,369 21
Main achievements in 2014: financial structure Significant improvement in Gecina s financial structure good visibility for 2015 at this stage Key achievements Average cost of debt and LTV Q4 2013: renewal of 510m of bank lines, renegotiation of non-use fees and repayment of 140m of mortgage facilities. July 23, 2014: Gecina placed a 500m 7-year bond issue, with a 1.75% coupon Hedging optimizations throughout the year December 2014 - January 2015: renegotiation/renewal of a 1bn unused credit line, and mortgage loans January 12, 2015: Gecina placed a 500m 10-year bond issue, with a 1.5% coupon more to come 40bp reduction in average cost of debt in 2014 from 4.0% to 3.6% 48% 46% 44% 42% further 40% 40bp reductionin 201538% to 3.2% 36% 34% 32% 30% -40bp in 2014-40bp in 2015e 2008 2009 2010 2011 2012 2013 2014 2015e 4,3% 4,1% 3,9% 3,7% 3,5% 3,3% 3,1% 2,9% 2,7% 2,5% LTV Average cost of debt Schedule of available financing (as of 15 th february 2015) Breakdown by type of drawn debt 1200 1000 800 600 23 96 400 820 120 835 550 800 650 200 392 500 98 20 42-101 30 0 24 2015 2016 2017 2018 2019 2020 2021 > 2021 Corporate - undrawn Corporate - drawn Secured financing Bonds and convertible 290 109 340 343 199 2 100% 80% 60% 40% 20% 0% 13% 13% 8% 19% 1% 4% 2% 36% 35% 31% 30% 38% 44% 43% 38% 55% 60% 45% 36% 21% 26% 2009 2010 2011 2012 2013 2014 Commercial paper Corporate financing Secured financing Bonds and convertible bond 22
CLIQUEZ POUR MODIFIER LE STYLE DU TITRE FY 2014 earnings
Décompos FY 2014 earnings: rental income Higher occupancy rates, moderate reversion and slight but positive indexation, bringing positive organic rental growth Rental income by division, rental margins, occupancy rates and annualized rents In million euros Gross rents Change (%) Rental margin Occupancy rate Annualized rents 2013 2014 Current Comparable 2013 2014 2013 2014 At end-2014 Offices 345.0 348.9 +1.1% +0.4% 93.0% 94.1% 93.6% 95.3% 335 Beaugrenelle 18.8 12.7-32.5% n.a. 93.8% n.a. 98.7% n.a. 0 Traditional residential 131.5 126.1-4.1% +0.5% 82.6% 83.7% 98.1% 97.7% 121 Student housing 9.3 9.1-2.1% -0.4% 70.2%* 73.6% 94.9% 92.0% 10 Healthcare 74.0 73.4-0.8% +1.0% 99.1% 99.2% 100.0% 100.0% 73 Other (primarily hotels) 10.3 0.7 n.a. n.a. n.a. n.a. n.a. n.a. Group total 588.9 571.0-3.0% +0.5% 91.4% 91.8% 95.5% 96.4% 539 * 75,9% on pro forma basis Gross rents bridge 2013-2014: - 17.9m Office rental income by location +16,7 588.9 +2.7-5.8-15.7-15.9 571.0 In million euros 2013 2014 Change (%) Current basis Comparable basis Offices 345.0 348.9 +1.1% +0.4% Paris CBD - Offices 100.6 102.6 +2.0% +1.1% 571,0 Paris CBD - Retail units 33.7 35.3 +4.9% +3.2% Paris excl. CBD 42.1 43.3 +2.8% -2.8% Western Crescent 119.5 116.3-2.7% 0.0% Other 49.2 51.5 4.6% -0.2% FY 2013 Like-for-like change Invest. & completions Asset restruct. Non-strategic disposals (Hotels & Beaugrenelle) Other disposals FY 2014 24
FY 2014 recurrent net cash flow Solid operating and financial performance offseting disposals impacts in 2014 Change in Recurrent Net Income (2013-2014) +16.1 +2.1 311.1 +3.8 +1.4 316.6-17.9 Recurrent net income 2013 Change in gross rents Largely driven by non strategic disposals in 2013 (Hotels) and 2014 (Beaugrenelle) Rental margin improvement Change in Overheads costs and other income Rental margin up slightly from 91.4% to 91.8% thanks to the higher occupancy cost ratio on offices and despite the disposals of Hotel assets in 2013 Effective control over salaries and management costs Change in net financial expenses Change in minority interests and tax Recurrent net income 2014 Net financial expenses excl. capitalized interest are down -14.3%. Negative impact of capitalized interest, down - 9.2m to 4.5m as a result of Beaugrenelle s completion 25
FY 2014 earnings: appraisal values & NNNAV 2014 portfolio value: contrasting trends in H2: +1% lfl on average in H2, but +5.1% on CBD assets Breakdown by segment Block value Net capitalization rates Change on comparable basis Average value per sq.m In million euros FY 2014 FY 2013 2014 2013 6 months 12 months 2014 Offices 6,482 6,908 6.05% 6.23% +1.6% +1.5% 7,371 Paris CBD 2,697 2,552 5.00% 5.29% +5.1% +5.9% 12,871 Of which offices 1,803 1,731 5.65% 5.90% +2.6% +4.4% 10,068 Of which retail units 894 821 3.74% 4.06% +10.2% +9.0% 28,223 Paris excl. CBD 838 1,391 7.63% 7.64% -1.0% -2.1% 5,633 Western crescent 2,130 2,149 6.60% 6.71% -1.1% -1.8% 6,037 Other 817 815 6.86% 6.77% -0.1% -0.4% 4,552 Residential 2,750 2,797 4.44% 4.38% -0.4% -0.9% 4,765 Healthcare 1,106 1,071 7.00% 7.01% +0.7% +0.4% 1,979 Other 4 6 n.a. n.a. Ns Ns Group Total Group Total unit value 10,341 10,913 10,781 11,368 Net yield by division and offices by area (Dec. 2013 / Dec. 2014) 5.74% 5.84% +1.0% +0.8% +0.8% +0.6% 8,0% 7,5% 7,0% 6,5% 6,0% 6,2% 6,1% 5,9% 5,7% 7,6% 7,6% 6,9% 6,7% 6,8% 6,6% 7,0% 7,0% 5,84% 5,74% 5,5% 5,0% 4,5% 4,0% 4,1% 3,7% 4,4% 4,4% 3,5% 3,0% Offices (all) Paris CBD - Offices Paris CBD - retail Paris excl. CBD West crescent Others Residential Healthcare Group 26
FY 2014 earnings: appraisal values & NNNAV NAV value creation excluding mark-to-market of debt and financial instruments 102.20-4.60-2.12 95.48 +6% 101.20 + 5.72 Asset revaluation + 0.61 Recurrent EPS + 5.17 Other - 0.06 NNNAV end-2013 Dividend paid in 2014 EPRA NNNAV & EPRA NAV Mark to market of NNNAV end-2013 NNNAV end-2014 debt and financial Proforma instruments NNNAV +3.4% over H2-2014 -1% vs. end-2013 104,9 NNNAV EPRA NAV 103,9 102,2 100,6 101,2 97,8 2013 H1-2014 2014 27
CLIQUEZ POUR MODIFIER LE STYLE DU TITRE Strategic update: Harnessing value creation potential
Strategic update One vocation: leading the Paris office market - Promising outlook for office real estate in the Paris Region One priority: harnessing value creation potential Active portfolio rotation strategy, with a total return focus and 4 strategic pillars 1- Capitalizing on opportunities for investment, harnessing our strengths and differentiating features 2- Extracting value reserves within our portfolio 3- Selling non-core and mature assets in a buoyant market 4- Promoting outstanding buildings Stabilized shareholding structure supporting our strategic views - Stabilization of our shareholding structure around Real Estate specialists - looking at the long-term outlook with Gecina Operational reorganization in line with these ambitions - Reorganization based on business lines rather than sectors, supporting the strategy s execution - Optimizing financial, operational and rental management 29
One vocation: leading the Paris office market Be the major office specialist in the promising Paris office market Appealing prospects for Paris office market Paris Region: Europe s largest market in terms of take-up Paris market: Europe s leading office market Thousand of sq.m 2 100 1 800 Take up Average (10 y) Unique market depth within the eurozone An increasing number of signals suggesting macro to recover by H2-2015/2016 Paris region's structural and sustainable economic outperformance compared with the rest of France Buoyant medium and long-term outlook for the market (Greater Paris) 1 500 1 200 900 600 300 0 12 13 14 12 13 14 12 13 14 12 13 14 12 13 14 12 13 14 12 13 14 12 13 14 12 13 14 Central ParisCentral London Munich Francfort Berlin Hambourg Bruxelles Madrid Milan Source: BNP Paribas Real Estate Employee jobs in Paris Region vs. other French regions Average GDP growth by region in France (2004-2013) % 2 Paris region Other French regions 1,5 1,2 0,9 % 1 Forecast 0,6 0,3 0 0,0-0,3-1 -2 04 05 06 07 08 09 10 11 12 13 14 15 16 17 Source: Insee, BNP Paribas forecast -0,6 Île de France Aquitaine Midi-Pyrénées Pays de la Loire Rhône-Alpes FRANCE Source: Oxford Economics. Languedoc-Roussillon Provence-Alpes-Côte Poitou-Charentes Nord - Pas-de-Calais Bretagne Haute-Normandie Centre Auvergne Alsace Basse-Normandie Picardie Limousin Champagne-Ardenne Bourgogne Lorraine Franche-Comté 30
One priority: harnessing value creation potential Active portfolio rotation strategy, with a total return focus and 4 strategic pillars Capitalizing on opportunities for investment, harnessing our strengths and differentiating features In-house expertise (Asset Management, Lease Management, Project Management, Marketing and Sales, etc.) Making it possible to capitalize on value-creating investment opportunities, Managing risks effectively And positioning the Group on real estate cycles on well-known markets Significant potential firepower making it possible to target potential portfolios LTV of 36.7%, well below company s target of 40% (> 550m immediate firepower) Liquid non-strategic assets to feed Gecina s future firepower Knowledge of real estate markets and participants facilitating off-market deals Portfolio scale Making it possible to carry strategic vacancies Recent achievements (2013-2015) Marbeuf (2013) Paris 8 Mirabeau (2013) Paris 15 Le France (2014) Paris 13 City 2 (2015) Boulogne-Billancourt?? 31
One priority: harnessing value creation potential Active portfolio rotation strategy, with a total return focus and 4 strategic pillars 2/ Extracting value reserves within our portfolio Total pipeline, including identified & controlled operations Asset reviews carried out by dedicated Asset Manager teams 62% of the Office portfolio audited by end-2014 Targeting 100% by end-2015 Nearly 1.3bn of investments identified to feed our pipeline with an expected yield on cost of around 7% 1,268m Controlled Opportunity studies looking at: Land banks Operations to redevelop or reposition existing buildings 440m Committed Pipeline identified with the asset review process on 62% of Gecina s portfolio at end-2014 Project Location Delivery date Lettable area (sq.m.) Total investment** ( m) Stillto be invested ( m) Est. yield on cost (net) Exit yield on delivery (exp.) Controlled* Greenfield Pre-letting required 2017-2020 56,404 195 188 8.9% 6.5% Redevelopments Tenant's departure likely 2019-2022 85,994 558 145 6.8% 5.8% Tenant's departure Redevelopments uncertain 2020-2023 54,131 515 172 6.4% 5.0% Total controlled 198,469 1 268 505 7.0% 5.6% (*) Controlled projects: potential projects identified by Gecina s Asset Management teams and fully controlled by Gecina. (**) Including value of the lands and of the existing buildings when redevelopments 32
One priority: harnessing value creation potential Active portfolio rotation strategy, with a total return focus and 4 strategic pillars 3/ Selling non-core and mature assets in a buoyant market New approach for unit-based residential sales, in line with natural tenant turnover, covering 18% of the total residential portfolio, targeting capital gains of over 35% versus block appraisal values. Various scenarios currently being reviewed for selling all or part of the non-strategic portfolios. Considering the disposal of mature office assets in a buoyant market context Target portfolio allocation in a mid-term, with a maximum of 20% diversification /sq.m 9 000 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 Significant valuation upside on residential to be capitalized on 8,110 49% 21% 5,442 28% Paris residential - Notaries Paris residential (block value) Gecina Paris residential (unit) Gecina 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2006 H1 2014 Mid-term target Offices Residential Diversifircation (Logistics, Hotels, Healthcare) Offices Residential Diversifircation (Healthcare) Offices > 80% Diversification (including traditional residential) < 20% 33
One priority: harnessing value creation potential Active portfolio rotation strategy, with a total return focus and 4 strategic pillars 4/ Promoting outstanding new-generation office buildings: sound foundations for value creation and growth in the future In response to changing user expectations and practices, Outstanding New-Generation office buildings must be: Connected and open to the city: prime location and visibility, architectural signature, transport connections, open to the region (open data, open office, open source) and open to nature, Responsible: incorporating the 12 responsible building themes from our CSR approach (energy performance, reducing greenhouse gas emissions, recycling, renewable materials, etc.). Target: 80% of the office portfolio certified by end-2016, 40% reduction in greenhouse gas emissions between 2008 and 2016 Flexible and mixed: scalability and capacity to adapt in line with tenants needs, reversibility and transformation of the buildings intended uses, combination of spaces and services Collaborative and focused on employee wellbeing: optimizing elements that contribute towards the building s intangible value (biodiversity, air and water quality, comfort and design, etc.) Rich services with a differentiating, value-creating offer: developing new inter-building services by setting up networks (expansion of shared carparks, superintendent services, third places, co-working spaces, etc.) 34
Stabilized shareholding structure supporting our strategic views Stabilization of our shareholding structure around Real Estate specialists looking at the long-term outlook with Gecina Realignment and stabilization of the shareholding structure and the board Entry of Blackstone and Ivanhoé Cambridge, jointly holding a 29,8% stake in the capital as well as Norges Bank and an increase in Predica s interest Gecina s Board of Directors now has the following members around Bernard Michel, Gecina s Chairman: 2 representatives from Ivanhoé Cambridge, 1 from Blackstone, 1 from Predica 5 independent directors, o.w. one is still being recruited End 2012 Start 2014 End 2014 Free float 30,3% Metrovacesa 26,8% Free float 38,8% Metrovacesa 26,7% Free float 44,2% Norges Bank 9,7% Blackstone & Ivanhoé Cambridge 29,9% Treasury stock 3,4% Crédit Agricole Assurances - Predica 8,2% Soler Group 15,2% Rivero Group 16,1% Treasury stock 3,0% Crédit Agricole Assurances - Predica 8,5% Ivanhoe Cambridge + Blackstone 23,0% Treasury stock 2,8% Crédit Agricole Assurances - Predica 13,4% that is now in line with a long-term outlook Helping establish sustainable value creation dynamics while capitalizing on the company s human values and CSR positioning 35
Operational reorganization in line with these ambitions Gecina has rolled out a new organizational and remuneration structure aligned with this reinforced strategy Reorganization based on business lines rather than sectors, supporting the strategy s execution Reorganization based on business lines rather than sectors supporting the strategy s execution around the 4 strategic pillars for value creation Capitalizing on opportunities for investment 2/ Extracting value reserves within our portfolio 3/ Selling non-core and mature assets in a buoyant market Promoting outstanding newgeneration office buildings 36
Q&A Gecina is effectively positioned to build its future 37
CLIQUEZ POUR MODIFIER LE STYLE DU TITRE Appendices
FY 2014 recurrent net cash flow 5 In million euros Dec 31, 2013 Dec 31, 2014 Change (%) Gross rental income 588.9 571.0-3.0% Expenses on properties (140.0) (142.7) +1.9% Expenses billed to tenants 89.5 96.0 +7.3% Net rental income 538.4 524.3-2.6% Services and other income (net) 7.6 8.4 +11.7% Overheads (65.7) (65.1) -0.8% EBITDA 480.3 467.6-2.6% Gains from disposals 46.2 14.0-69,6% Change in fair value of properties (44.2) 21.1 Na Depreciation (5.4) (5.3) -2.2% Net provisions and amortization (5.5) 0.7 Na Operating income 471.3 498.0 +5.7% Net financial expenses (162.7) (146.6) -9.9% Financial depreciation and provisions (0.6) 0,0 Na Change in fair value of financial instruments and debt 28.1 (68.3) Na Net income from equity affiliates 0.3 0.1-60.3% Pre-tax income 336.4 283.3-15.8% Recurrent tax (4.2) (3.3) -22.9% Non-recurrent tax 1.7 0.2 Na Exit tax (3.8) (2.7) Na Deferred tax (2.4) 3.4 Na Non-recurrent minority interests (11.4) 1.6 Na Recurrent minority interests (2.3) (1.2) Na Consolidated net income (Group share) 314.0 281.3-10.4% Rental margin up slightly from 91.4% to 91.8% thanks to the higher occupancy cost ratio on offices and despite the disposals of Hotel assets in 2013 Effective control over salaries and management costs Gains from the disposal of Beaugrenelle were recognized in 2013. Gains booked in 2014 primarily concern unit-based residential disposals Net financial expenses excl. capitalized interest are down -14.3%. Negative impact of capitalized interest, down - 9.2m to 4.5m as a result of Beaugrenelle s completion 5 Impact of the reduction in interests rates on the valuation of hedging (- 56.7m) and MTM of - 11.6m for Ornane convertible bonds 6 Recurrent net income - total share 313.4 317.8 +1.4% Recurrent net income - Group share 311.1 316.6 +1.8% Average number of shares 60,991,382 61,260,603 +0.4% Recurrent net income per share (undiluted) - Group share 5.10 5.17 +1.3% 6 +5.9% underlying growth restated for the impacts of Beaugrenelle and the hotel portfolio disposals in 2013 and 2014 39
Consolidated balance sheet In million euros 2013 2014 In million euros 2013 2014 Non-current assets 10,588.0 10,201.4 Capital and reserves 6,245.5 6,279.0 Investment properties 10,337.6 9,827.2 Share capital 471.5 473.3 Buildings under refurbishment 151.8 276.0 Addtional paid-in capital 1,877.4 1,890.7 Buildings in operation 64.0 62.7 Consolidated reserves 3,582.5 3,623.3 Other tangible fixed assets 4.2 5.5 Consolidated net profit 314.0 281.4 Intangible fixed assets 3.4 3.3 Capital and reserves attibutable to owners of the parent 6,245.5 6,268.7 Long-term financial investments 12.0 11.8 Non-controlling interests 0.0 10.4 Share in equity-accounted companies 3.7 3.5 Non-current financial instruments 10.8 11.0 Non-current liabilities 3,274.8 3,614.7 Deferred tax assets 0.4 0.4 Non-current financial debt 3,089.8 3,501.1 Non-current financial instruments 150.6 84.6 Current assets 411.5 344.8 Deferred tax liabilities 5.5 2.1 Properties for sale 219.9 169.1 Non-current provisions 28.9 26.8 Inventories 7.4 6.4 Trade receivables and related 89.1 84.8 Non-current taxes due & other employeerelated liabilities 0.0 0.0 Other receivables 55.9 48.6 Current liabilities 1,479.1 652.5 Prepaid expenses 27.0 22.6 Current financial debt 1,168.3 383.5 Current financial instruments 0.0 0.0 Current financial instruments 0.0 0.0 Cash & cash equivalents 12.3 13.3 Security deposits 65.1 58.6 Trade payables and related 155.9 109.6 Current taxes due & other employeerelated liabilities 45.9 37.8 Other current liabilities 43.9 53.0 TOTAL ASSETS 10,999.5 10,546.2 TOTAL LIABILITIES 10,999.5 10,546.2 40
Pipeline in detail Project Location Delivery date Lettable area (sq.m.) Total Investment** ( m) Already invested** ( m) To be invested ( M) Est. yield on cost (net) Pre-letting Exit yield on delivery (exp.) % ownership Committed Boulogne Cristallin Hauts de Seine (92) Q4-15 11,462 68 47 21 7.6% 0% 100% Amsterdam Paris Q1-17 12,362 102 60 42 6.8% 0% 100% Lyon Gerland Rhône (69) Q2-17 20,341 55 3 52 7.9% 100% 60% Total offices & commercial 44,165 225 110 115 7.3% n.a. 5.5% Bagnolet Philia Seine St Denis (93) Q3-15 4,126 19 17 2 6.0% n.a 100% Bordeaux Blanqui Gironde (33) Q3-15 3,377 12 6 6 6.7% n.a 5,5 100% Lançon Paris 13 Q2-15 1,465 11 9 3 5.3% n.a 4,80 100% Palaiseau Saclay Essonne (91) Q3-15 3,002 11 6 5 6.5% n.a 5,50% 100% Puteaux Rose de Cherbourg Hauts de Seine (92) Q2-18 8,102 43 1 42 7.0% n.a 5,25% 100% Marseille Mazenod Bouches du Rhônes (13) Q2-17 3,742 14 0 14 6.2% n.a 5,50% 100% Puteaux Valmy Hauts de Seine (92) Q2-17 3,937 21 1 20 6.1% n.a 5,25% 100% Total residential 27,751 133 39 94 6.4% n.a 5.3% Clinique Bayonne Pyrénées Atlantiques (64) Q3-15 27,744 69 58 11 6.6% 100% 100% Clinique Orange Vaucluse (84) Q3-15 4,797 13 11 2 6.9% 100% 80% Total Healthcare 32,541 82 69 13 6.6% 100% 6.5% Total committed 104,457 440 218 221 6.9% na 5.5% Controlled* Greenfield Pre-letting required 2017-2020 56,404 195 7 188 8.9% 6.5% 100% Redevelopments Tenant's departure likely 2019-2022 85,994 558 413 145 6.8% 5.8% 100% Redevelopments Tenant's departure uncertain 2020-2023 54,131 515 344 172 6.4% 5.0% 100% Total controlled 198,469 1,268 763 505 7.0% na 5.6% Total Pipeline 302,926 1,708 982 726 7.0% 5.6% (*) Controlled projects: potential projects identified by Gecina s Asset Management teams and fully controlled by Gecina. (**) Including current value of the lands and of the existing buildings when redevelopments 41
Office and Residential portfolio breakdowns Office portfolio: rental breakdown by business sector Office asset locations 3%3%3%2% 4% 5% 6% 10% 36% Services Luxury & retail Industry Public sector Telecoms Banking & financial Information & communication technologies Insurance 14% 14% Other Real estate Commuication - TV Residential portfolio: valuation breakdown by region Residential asset locations Other 4% Paris Region 25% Paris 71% 42
Healthcare Healthcare lease expiry ( m) Diversification asset locations m 45 40 35 30 25 20 15 10 5 0 2015 2016 2017 2018 2019 2020 2021 > 2021 Breakdown of annualized rental income by tenant type Nursing homes 33% Medicine, surgery, obstetrics 57% Follow-up care and rehabilitation 5% Psychiatry 5% 43
Change in GAV and NNNAV Change in GAV (in million euros) +21 +277 +571 10,781-744 +6 10,913 10,341 Total GAV block dec-31, 2013 Value adjustment on assets Acquisition and capex Disposals Other Total GAV block dec-31, 2014 Unit / Block diff. Total GAV unit dec-31, 2014 Change in NNNAV (in per share) +5.1 +0.7-2.1-0.1-4.6 102.2 101.2 NNNAV end-2013 Dividend Recurring income Val. adjust. assets Val. adjust. derivatives & fixed-rated debt Other NNNAV end-2014 44
The Grand Paris : a new path for growth in a mid term horizon
Financial diary April 23 First-quarter business April 24 General meeting July 22 First-half earnings October 21 Third-quarter business 46
Disclaimer Appendices This document does not constitute an offer to sell or a solicitation of an offer to buy GECINA securities and has not been independently verified. If you would like to obtain further information concerning GECINA, please refer to the public documents filed with the French securities regulator (Autorité des marchés financiers, AMF), which are also available on our internet site. This document may contain certain forward-looking statements. Although the Company believes that such statements are based on reasonable assumptions on the date on which this document was published, they are by their very nature subject to various risks and uncertainties which may result in differences. However, GECINA assumes no obligation and makes no commitment to update or revise such statements. 47