Unibail-Rodamco's Sustainability Priorities
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Unibail-Rodamco Innovation driving growth _ ANNUAL AND SUSTAINABLE DEVELOPMENT REPORT 2013 Nordics Unibail-Rodamco is Europe's leading listed commercial The property company. Netherlands Germany France Austria Spain 12% 10% Central Europe Spain 8% 10% Convention GROUP PORTFOLIO SHOPPING CENTRE & Exhibition Nordics –€32.1 Bn– PORTFOLIO — 80% — By activity* By region* 9% 12% Shopping centres Austria Offi ces 6% 53% The Netherlands France Major European cities Seville / Valencia / Madrid / Barcelona / Bordeaux / Lyon / Nice / Paris / Lille / Amsterdam / The Hague / Copenhagen / Stockholm / Prague / Vienna / Bratislava / Warsaw / Helsinki / * In terms of Gross Market Value as of 31 December 2013. OFFICES AND CONVENTION & EXHIBITION VENUES IN PARIS FOOTFALL C&E France * OFFICES 35 shopping centres 367Mn Central Europe * 15 shopping centres 158Mn Spain 16 shopping centres 148Mn Nordics 9 shopping centres 53Mn Austria 3 shopping centres 52Mn Central The Netherlands Europe 5 shopping centres 44Mn M2 GLA Shopping centres * 3,318,200 Offi ces 615,600 Convention & Exhibition 610,300 83 823 94% 53% million of the of the Group’s visits Group's portfolio* shopping centre portfolio shopping across the Group's is located in a 200 meter certifi ed centres * shopping centres radius from public transport BREEAM IN-USE — Created in 1968 — Included in the DJSI (World and — Strong balance sheet with a low Europe), FTSE 4 Good, STOXX Global ESG loan-to-value (LTV) ratio of 38%. — Listed on the Paris stock Exchange Leaders, GRESB, Etisphere and Global since 1972, on the Amsterdam stock Reporting Initiative indices. — “A” Rating from Standard & Poor’s exchange since 1983. Included in the and Fitch, one of the best ratings in the CAC 40, AEX 25 and EURO STOXX 50 — 90% (1) of the Group’s shopping industry. Indices. centres welcome more than 6 million visits per annum. * Including shopping centres consolidated under the equity method. (1) By Gross Market Value (GMV). 02 A look back at 2013 CORPORATE Strong values which drive our performance 12 Message from the CEO and Chairman of the Management Board 14 Message from the Chairman of the Supervisory Board 16 Corporate governance and risk management 18 Figures on the rise 20 EPRA performance measures 22 Shareholders report STRATEGY Widening the gap through innovation 26 Moments to remember 34 The changing face of retail 36 Concentration 38 Diff erentiation 42 Innovation 48 A new generation of assets well matched to the future OPERATIONS A strong portfolio for future growth 54 A unique portfolio 56 Regions 64 Shopping centre managers 66 Offi ces 68 C&E SUSTAINABLE DEVELOPMENT Creating sustainable value for everyone 72 Unibail-Rodamco’s sustainability priorities 74 How does the group manage sustainability? 75 Recognised as a sector leader 76 Inspire and develop our people 78 Creating opportunities for communities to prosper 80 Driving value for stakeholders 82 Building resilience through innovation 84 Unlock opportunities to make sustainable decisions 86 Corporate citizenship In anticipating future trends and delivering the most innovative initiatives, Unibail-Rodamco stays close to its customers. We encourage each team member to think out of the box and be an entrepreneur in every aspect of the business. It is this drive and vision which make the Group a market leader, with each asset designed to be the best display for tenants and the most memorable place for customers. Unibail-Rodamco fosters innovation to be at the forefront of today's market, with a portfolio that is relevant to the world it sees ahead. 2013 | A LOOK BACK AT 2013 25TH OF APRIL 2013 Christophe Cuvillier becomes CEO & Chairman of the Management Board Christophe Cuvillier replaces Guillaume Poitrinal as CEO and Chairman of the Management Board. 02 ANNUAL AND SUSTAINABLE DEVELOPMENT REPORT 2013 1 56,000 visits on the opening day 2 3 55,000 visits on the opening day MARCH TO AUGUST 2013 Brand new 1- March Centrum Černý Most. After two years of major extension and renovation works by award-winning British architectural fi rm Benoy, Prague’s historic shopping centre opened its doors to the public with a unique design, retail off er, iconic shop fronts and 4 Star services. Centrum Černý Most was awarded “The Best of Realty Award”. This award is widely regarded as the most prestigious in the Czech real estate market. 2- June Launch of the V3 mobile app. The Group’s digital marketing team accomplished a new milestone with a completely re-designed app. As of 31 December 2013, 2.4 million of the Group's Apps had been downloaded 3- August Täby Centrum's new south extension opened with an exclusive new retail off er, such as the fi rst L’Oréal Paris Boutique in the world, iconic shop fronts and a spectacular design. It won both “Best store off er” and “Stockholm’s favorite shopping centre” in a yearly survey of 47 shopping centres . 03 2013 | A LOOK BACK AT 2013 AEROVILLE.COM *SHOPPING INATTENDU SEPTEMBER 2013 Unexpected Shopping The “Unexpected Shopping” campaign, developed by the advertising agency BETC, is a unique concept that reveals the capacity of Unibail-Rodamco’s shopping centres to innovate their marketing approach. In 2013, the campaign was launched in Aéroville, Toison D’Or, Alma and Shopping City Süd. The campaign will be deployed in nearly 30 of the Group's shopping centres across Europe by April 2014. 04 ANNUAL AND SUSTAINABLE DEVELOPMENT REPORT 2013 250 m2 LED screens 46 million visits a year at Les 4 Temps SEPTEMBER 2013 Launch of Digital Dream™ A fi rst for shopping centres: with panoramic LED screens, this innovative media strategy immerses onlookers in poetic content and gives brands a unique opportunity to advertise in a creative way. Digital Dream™ was launched in Les 4 Temps in September. Immerse yourself in Digital Dream™ : http://bit.ly/Digital_Dream 05 2013 | A LOOK BACK AT 2013 1st 1st +50% out of 55 for governance increase in score in Europe across since 2008 the CAC 40 SEPTEMBER 2013 Figures 1- DJSI: Unibail-Rodamco is part of the top 4% in the sector. The Group has improved its overall score by 50% since its inclusion in 2008. 2- Global Real Estate Sustainability Benchmark (GRESB): Unibail-Rodamco scored 1st out of 55 in the Europe retail peer group and 7th out of 543 in the worldwide score. 3- Proxinvest: Unibail-Rodamco is voted best in class in terms of governance amongst CAC 40 peers. 06 ANNUAL AND SUSTAINABLE DEVELOPMENT REPORT 2013 1 Mn visits 5 weeks after the inauguration 16TH OF OCTOBER 2013 Delivery of Aéroville Spread across 83,300 m² GLA, it is the largest shopping centre built in France in the last 20 years. Aéroville, next to Charles de Gaulle International Airport, reunites all of the Group’s cutting edge innovations in a single place: architecture and design, 4-Star label services, the perfect blend of premium and international brands, iconic shop fronts, the Dining Experience™ and the fi rst EuropaCorp CINEMAS, from world renowned Luc Besson. 07 2013 | A LOOK BACK AT 2013 1 45,000 visits on the opening day 2 40,000 visits on the opening day OCTOBER 2013 Extensions 1- October Alma, which opened in Rennes 40 years ago, was completely re-designed with a 10,000 m² GLA new extension, exclusive retailers and 4 Star services. 2- October Toison D’Or is Burgundy’s iconic shopping centre and its new 12,000 m² extension is an ode to modern architecture with 4 Star services, the Dining Experience™ and an exciting retail off er (with 56 brands exclusive to Dijon), such as the 2nd Primark in France. 08 ANNUAL AND SUSTAINABLE DEVELOPMENT REPORT 2013 1 2 3 NOVEMBER TO DECEMBER 2013 Exclusive 1- November Shopping City Süd. After two years of refurbishment, the 195,600 m² GLA Shopping City Süd, the largest in Austria in terms of size and footfall, now off ers a brand new shopping experience to its visitors with 261 exceptional retailers.. 2- December So Ouest tower. SAP, the multinational software company, signed a 12 year long-term lease agreement for 90% of So Ouest tower, in Paris. 3- December Inauguration of UR Lab's campus. The Group’s innovation incubator inaugurated its brand new campus near Paris. The new space is a real-scale lab allowing teams to bring to life and test all of the Group’s latest innovations. 09 CORPORATE | STRONG VALUES WHICH DRIVE OUR PERFORMANCE Centrum Černý Most ANNUAL AND SUSTAINABLE DEVELOPMENT REPORT 2013 Strong values drive our performance +5.6% +6% +18.9% Net Rental Income dividend annualised total Growth per share shareholder return dividends reinvested (10 years) CORPORATE | STRONG VALUES WHICH DRIVE OUR PERFORMANCE +6.5% Recurring earnings per share +11.2% Recurring Net Result Group Share We create exceptional places for the best brands to meet the largest number of customers” CHRISTOPHE CUVILLIER, CEO and Chairman of the Management Board 12 ANNUAL AND SUSTAINABLE DEVELOPMENT REPORT 2013 Dear Shareholders, 2013 was a special year for the Group. Firstly, the 25th of April, I have had the honor to take over the reins of Unibail-Rodamco when Guillaume Poitrinal decided to bring the succession process to a close. I would like to take this opportunity to pay tribute to him, who through his 18 years of dedication to the Group, was able to turn a French company called Unibail into the world-class leader in commercial real estate we know today. Secondly, following this change in leadership, I thought it was also the right time to rethink the Management Board, creating a new group of highly skilled, highly diff erent and highly complementary individuals, who I am sure, will guide the Group to new successes.