Icade Sa · EURONEXT:ICAD
Icade Sa — ESG Presentation (May 2023)
39 slides from Icade Sa's sustainability presentation, May 2023
Slide 1: Icade CSR Investor Presentation May 2023
ATHLETES VILLAGE “LES QUINCONCES” DESIGNING, BUILDING, Saint-Ouen, Seine-Saint-Denis MANAGING AND INVESTING in cities, neighbourhoods and buildings that are innovative, diverse, inclusive and connected with a reduced carbon footprint. Desirable places to live and work. This is our ambition. This is
Slide 2: Agenda
Icade at a glance – FY 2022 Key highlights 1 CSR Strategy overview 2 Low Carbon strategy AGENDA 3 Biodiversity strategy 4 Focus on sustainable finance 5 Outlook Appendices 2
Slide 3: Icade at a glance: FY 2022 key highlights
Icade at a glance FY 2022 key highlights FRESK Issy-les-Moulineaux, Hauts-de-Seine 3 Paris, 15th district
Slide 4: Icade at a glance
ICADE AT A GLANCE ICADE AT A GLANCE One of the leading french listed reits As of 12/31/2022 €15.1bn Property portfolio OFFICE INVESTMENT: Icade, the leading real estate player in Greater Paris €11.8bn Property portfolio excl. duties, Group share • Portfolio as of 12/31/2022: €8.2bn (100% basis) • Av
Slide 5: CSR strategy overview
1 CSR strategy overview URBAN FOREST PORTE DE PARIS BUSINESS PARK Aubervilliers, Seine-Saint-Denis 5
Slide 6: CSR at the core of our strategy
1. CSR STRATEGY OVERVIEW CSR AT THE CORE OF OUR STRATEGY 5 CSR priorities 2023-2026 An inclusive, ambitious and recognized CSR strategy Climate 1.5°C Biodiversity Pathway & Soil & protection Adaptation Involving all its A large approval by A policy recognized Well-being stakeholders: more than 98% o
Slide 7: A dedicated and supportive governance
1. CSR STRATEGY OVERVIEW A DEDICATED AND SUPPORTIVE GOVERNANCE Icade’s CSR & Innovation organisation CSR Commitments involve the entire management structure and are INCORPORATED in the company’s overall strategy, with innovation as a cross-cutting issue: • 10% of ExCo members’ variable remuneration
Slide 8: Launch of a Purpose Advisory Board
APPENDICES - ICADE’S CSR STRATEGY LAUNCH OF A PURPOSE ADVISORY BOARD Our Purpose “Designing, Building, Managing and Investing in cities, neighbourhoods and buildings that are innovative, diverse, inclusive and connected with a reduced carbon footprint. Desirable places to live and work. This is our
Slide 9: Leading position confirmed by CSR rating agencies and rankings
1. CSR STRATEGY OVERVIEW LEADING POSITION CONFIRMED BY CSR RATING AGENCIES AND RANKINGS CLIMATE CHANGE NON-SPECIALISED REAL ESTATE Ranked 3rd out of 438 listed real estate companies worldwide “Sector leader” status in the category of listed diversified Score: 7.3/100 (inverted scale) companies in Eu
Slide 10: Low Carbon strategy
LA PLATEFORME Marseille, Bouches-du-Rhône 2 Low Carbon strategy 10
Slide 11: Low carbon, a top priority for almost 20 years
1. CSR STRATEGY OVERVIEW LOW CARBON, A TOP PRIORITY FOR ALMOST 20 YEARS… 2022 2023 2005 2020 Group 1.5°C 2010 2017 2019 Approval of the 1st private Promoting aligned net-zero 2nd Say on A well-established service sector 1st green 1st developer to climate & track record building in France obtain the
Slide 12: Low carbon strategy ramped up in 2022 in line with a 1.5°C pathway
2. LOW CARBON STRATEGY: ALIGNED WITH A 1.5 °C PATHWAY ICADE RAMPED UP ITS LOW CARBON STRATEGY IN 2022 IN LINE WITH A 1.5°C PATHWAY Group’s 1.5°C-aligned net zero pathway approved by the SBTi in October 2022 Even more ambitious goals over the medium term Results at the end of 2022 in line with a 1.5°
Slide 13: Icade's carbon footprint in 2022
2. LOW CARBON STRATEGY: ALIGNED WITH A 1.5 °C PATHWAY ICADE’S CARBON FOOTPRINT IN 2022 Property Office Healthcare Development Property Property Corporate Emissions from Emissions from Emissions from building construction(1) the construction the construction of office buildings of healthcare faciliti
Slide 14: Office property investment committed with our tenants
2. LOW CARBON STRATEGY: ALIGNED WITH A 1.5 °C PATHWAY OFFICE PROPERTY INVESTMENT COMMITTED WITH OUR TENANTS -60% -29% €100m: investments between 2022 & 2026 Target reduction in operational carbon Results between intensity between 2019 and 2030, 2019 and 2022 in kgCO2 e/sq.m/year Main measures: • Ren
Slide 15: Property development ramp up low-carbon construction
2. LOW CARBON STRATEGY: ALIGNED WITH A 1.5 °C PATHWAY PROPERTY DEVELOPMENT RAMP UP LOW-CARBON CONSTRUCTION -41% -5% >550,000 sq.m Target reduction in carbon intensity between 2019 & 2030 Results between of timber construction projects for buildings built, in kgCO2 e/sq.m over a 50-year horizon compl
Slide 16: An ambitious and responsible carbon offsetting policy
2. LOW-CARBON STRATEGY: ALIGNED WITH A 1.5 °C PATHWAY AN AMBITIOUS AND RESPONSIBLE CARBON OFFSETTING POLICY LABARTHE BLEYS (81) Started in 2019! • Afforestation of agricultural land (5.5 ha) 94,000 tonnes (1) of CO2 • 2,780 trees (poplars, cedars) • Label bas carbone • Forest certified PEFC • 1,094
Slide 17: Biodiversity strategy
3 Biodiversity strategy URBAN FOREST PORTES DE PARIS BUSINESS PARK Aubervilliers, Seine-Saint-Denis 17
Slide 18: Biodiversity strategy: 2019–2022 targets met or exceeded
3. BIODIVERSITY PROTECTION BIODIVERSITY STRATEGY: 2019–2022 TARGETS HAVE BEEN MET OR EXCEEDED Ambitious 2019–2022 commitments… And targets have been surpassed 25% of new builds with a net positive impact 63% of construction projects PROPERTY on biodiversity starting in 2020 had a net positive impact
Slide 19: Higher biodiversity goals for 2030
3. BIODIVERSITY PROTECTION HIGHER BIODIVERSITY GOALS FOR 2030 Icade’s 2030 biodiversity strategy 1 2 3 Rewilding 100% Nature-boosting solutions Voluntary measures to restore of the Property Development for 90% of the Office Property Division’s new builds and the or preserve ecosystems Office Propert
Slide 20: Focus on sustainable finance
PULSE Saint-Denis, Seine-Saint-Denis 4 Focus on sustainable finance 20
Slide 21: A continuous focus on sustainable financing
4. SUSTAINABLE FINANCE - CREDIT HIGHLIGHTS A CONTINUOUS FOCUS ON SUSTAINABLE FINANCING 2017 2020 H1 2020 An inaugural Green Bond meeting The first Corporate Social Bond 2 new RCF lines signed for a the highest Standards benchmark sized in the world total of €450m Pioneer in issued by Icade Santé sus
Slide 22: Outlook
ORSUD Gentilly, Val-de-Marne 5 Outlook 22
Slide 23: Conclusion – CSR strategy
OUTLOOK CONCLUSION – CSR STRATEGY Carbon intensity/sq.m significantly reduced since 2019 in line with our 1.5°C aligned carbon reduction pathway approved by SBTi 2022–2026 low-carbon investment plan of €180m will allow Icade to remain a best in class in the real estate sector CSR strategic plan 2023
Slide 24: Appendices
Appendices ROQUEBRUNE-CAP-MARTIN Alpes-Maritimes 24
Slide 25: Icade's CSR policy: solid 2022 results
APPENDICES - 2022 CSR RESULTS ICADE’S CSR POLICY: SOLID 2022 RESULTS Main achievements regarding Certification Main achievements regarding Inclusion 92% Of new offices Are certified 100% of investment projects in France and abroad implement the guidelines set 36% Of new homes out in the Quality of L
Slide 26: Main CSR commitments 2023-2026
APPENDICES - ICADE’S LOW-CARBON STRATEGY MAIN CSR COMMITMENTS 2023-2026 Healthcare Property Office Property Investment Investment Property Development • -60% carbon intensity between 2019 • -35% carbon intensity between 2019 and 2030 and 2030 • -41% carbon intensity between 2019 • Assess the vulnera
Slide 27: Governance structure meeting the best standards
APPENDICES - 2023 OUTLOOK GOVERNANCE STRUCTURE MEETING THE BEST STANDARDS Governance in line with the Afep-Medef Code Board of Directors 15 40% 1/3 members of women of independent directors 4 1 specialised committees, 3 of them chaired independent Vice-Chairwoman by independent directors 27
Slide 28: Start-up & spin-off to tackle Icade's challenges
APPENDICES - ICADE’S LOW-CARBON STRATEGY 14 START-UP & SPIN-OFF TO TACKLE ICADE’S CHALLENGES Low-carbon New habits Soils & biodiversity Digital SaaS solution based on data and Low-carbon buildings design Senior coliving operator Rainwater recycling solutions AI helping real estate profess- & constru
Slide 29: Pathway to reduce Icade's GHG emissions in the SBTi scope
APPENDICES - LOW CARBON STRATEGY PATHWAY TO REDUCE ICADE’S GHG EMISSIONS IN THE SBTI COMMITMENT SCOPE Pathway approved by SBTi In tonnes of CO2 +8.7% -28% -28% by 2030 628,813 578,734 -90% by 2050 546,808 434,714 417,483 Results 2022 vs 2019 -90% In line with a 1.5°C pathway 623,009 571,102 542,357
Slide 30: 2015–2022 highlights
APPENDICES – ICADE’S LOW-CARBON STRATEGY: UPDATE ON THE ROADMAP 2015–2022 HIGHLIGHTS 2015 2016 2017 2018 2019 2020 2021 2022 CSR & Innovation Signing of the An inaugural First solidarity leave Launch of Icade’s CSR & Innovation A Green Financing Framework 1st biodiversity €600m Green Bond enabling s
Slide 31: Further alignment between financial and non-financial reporting
APPENDICES – CSR AND EUROPEAN TAXONOMY REPORTING – EUROPEAN TAXONOMY REPORTING FURTHER ALIGNMENT BETWEEN FINANCIAL AND NON-FINANCIAL REPORTING TAXONOMY REPORTING: Eligible and aligned activities Total IFRS Icade reporting based as of 12/31/2022 Eligible activities(1) Aligned activities(1) on 2022 da
Slide 32: Q1 2023 key takeaways
APPENDICES - Q1 2023 KEY TAKEAWAYS Q1 2023 – KEY TAKEAWAYS Resilient operational indicators, reflecting solid fundamentals in a challenging market Total group share revenue stands at €300m Exclusivity agreement between Icade and Primonial REIM for the sale of Icade Santé A potential transaction of €
Slide 33: Office property investment – Q1 2023 key highlights
APPENDICES - PERFORMANCE OF BUSINESS LINES OFFICE PROPERTY INVESTMENT – Q1 2023 KEY HIGHLIGHTS Solid leasing activity in a quiet market Asset rotation c.60,000 sq.m 6 years Securing c.€150m Total floor area of leases signed WALB related to leases signed €14m Under preliminary agreement incl. 2 matur
Slide 34: Property development – Q1 23 key highlights
APPENDICES - PERFORMANCE OF BUSINESS LINES PROPERTY DEVELOPMENT – Q1 2023 KEY HIGHLIGHTS A market slowdown impacting operating indicators Emblematic projects Icade Promotion chosen Economic Revenue Housing Orders to codevelop the Gavy site Successful launch of in Saint Nazaire the “58 Victor Hugo” €
Slide 35: Confirmation of the 2023 guidance and dividend policy
APPENDICES - 2023 OUTLOOK CONFIRMATION OF THE 2023 GUIDANCE AND DIVIDEND POLICY Guidance announced on February 20, 2023 Updated guidance 2023 Stable to slightly up Unchanged Group NCCF Excluding impact NCCF to be confirmed in July 2023 per share of 2023 disposals according to the effective date of t
Slide 36: Dividend reflecting solid NCCF growth
APPENDICES - 2022 FINANCIAL RESULTS – DIVIDEND DIVIDEND REFLECTING SOLID NCCF GROWTH Board of Directors’ proposal to the General Meeting to be held on April 21, 2023 +3.1% Growth vs. 2021 2022 dividend at €4.33 per share 2022 dividend 78.7% payout ratio Dividend paid in two instalments: Dividend yie
Slide 37: Key takeaways from Icade and Primonial REIM exclusive agreement
APPENDICES - KEY TAKEAWAYS FROM ICADE AND PRIMONIAL REIM EXCLUSIVE AGREEMENT ICADE AND PRIMONIAL REIM SIGN AN EXCLUSIVITY AGREEMENT FOR THE ACQUISITION OF ICADE’S STAKE IN ICADE SANTÉ An exclusivity agreement signed between Icade, Icade Santé’s minority shareholders and Primonial for (i) the acquisi
Slide 38: Icade, a strong financial structure as of Dec 2022
APPENDICES - CREDIT HIGHLIGHTS ICADE, A STRONG FINANCIAL STRUCTURE AS OF DEC 2022 1 Solid long-term shareholder structure 2 Comfortable liquidity policy The 2 first Icade’s shareholders are 39.2% Caisse des dépôt & 19.1% Crédit Agricole • Liquidity position (excl. NEUCP): €2.5bn consignations Assura
Slide 39: Improvement of all debt ratios, far from covenants
APPENDICES - 2022 FINANCIAL RESULTS – LIABILITIES IMPROVEMENT OF ALL DEBT RATIOS, FAR FROM COVENANTS LTV Ratio (incl. duties) down 80 bps, below 40% Ratio S&P(1) (net debt / net debt + revalued Equity) down 40 bps at 44.5%, in line with a strong BBB+ Banking 60% Covenant 50,0% 50,0% 43.7% 44.1% 43.5