Citycon Oyj · OMXHEX:CTY1S
Citycon Oyj — Investor Day (September 2009)
117 slides from Citycon Oyj's investor day presentation, Sep 16, 2009
Slide 1: Capital Markets Day
Capital Markets Day Iso Omena and Trio, 16 September 2009
Slide 2: Agenda
Agenda 9:00-9:05 Welcoming Words Hanna Jaakkola, IRO 9:05-9:15 Citycon in European Context Thomas W. Wernink, Chairman of the Board of Directors 9:20-9:40 Strategy of Citycon Petri Olkinuora, CEO 9:40-10:00 Citycon's Financial Position Eero Sihvonen, CFO 10:00–10:10 Coffee Break 10:15-10:40 Overview
Slide 3: Citycon in European Context
Citycon in European Context Thomas W. Wernink, Chairman of the Board of Director Capital Markets Day in Iso Omena, 16 September, 2009
Slide 4: 4
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Slide 5: Strategy of Citycon
Strategy of Citycon Petri Olkinuora, CEO Capital Markets Day in Iso Omena, 16 September, 2009
Slide 6: Strategy
Strategy • Leading owner, operator and developer of shopping centres in growing cities in Finland, Sweden and the Baltic countries. • In-house shopping centre management, leasing, commercial concept creation, market research and development expertise. • Priority in sustainable shopping centre manage
Slide 7: Financial targets
Financial targets Continued expansion through property development and selective acquisitions Cumulative CAPEX since 2005 in excess of EUR 1.5 billion GROWTH Main emphasis on organic growth Solid distribution policy Payout target 50 % of the result for the period after DIVIDENDS taxes excl. fair
Slide 8: Geographical overview
Geographical overview FINLAND • 74.9% of total net rental income in Q2 2009 • Net rental income growth of 2.5% to EUR 46.0 million Sweden (€m) Finland (€m) • Market leader with 24% market share; 22 1,451.6 shopping centers and 42 other retail 496.8 properties 66.1 63.7 46.0 18.8 18.2 10.8 SWEDEN MV
Slide 9: Business environment
Business environment 9 CMD 2009
Slide 10: Business environment
Business environment GDP PRIVATE CONSUMPTION Source: Nordea 10 CMD 2009
Slide 11: Business Environment
Business Environment CONSUMER CONFIDENCE 30,0 20,0 10,0 0,0 1.10.2007 1.1.2008 1.4.2008 1.7.2008 1.10.2008 1.1.2009 1.4.2009 1.7.2009 Finland -10,0 Sweden Estonia -20,0 Lithuania euro zone -30,0 -40,0 -50,0 -60,0 Source: Eurostat 11 Consumer confidence indicator is conducted as an interview survey.
Slide 12: Business environment
Business environment PROPERTY MARKET 1) RETAIL AND GROCERY SALES, CPI, JUNE 09 As a result of the international financial crisis foreign property investor activity in the region has declined considerably. Since fall 2008, the most active buyers by far have been domestic pension and insurance Institu
Slide 13: Sales and Footfall
Sales and Footfall 13 CMD 2009
Slide 14: Accumulative Shopping Centre Footfall, Jan-Aug 2009
Accumulative Shopping Centre Footfall, Jan-Aug 2009 60 12,0 % 9,8 % 50 8,0 % 40 4,0 % Footfall, million 30 0,0 % Change -1,6 % -2,5 % 20 -4,0 % 10 -8,0 % - -12,0 % Finland Sweden The Baltic Countries 1-8/2008 1-8/2009 Change 14 CMD 2009
Slide 15: Accumulative Shopping Centre Sales, Jan-Aug 2009
Accumulative Shopping Centre Sales, Jan-Aug 2009 900 10,6 % 12,0 % 800 8,0 % 700 600 4,0 % 500 0,3 % -0,9 % MEUR 0,0 % Change 400 300 -4,0 % 200 -8,0 % 100 - -12,0 % Finland Sweden The Baltic Countries 1-8/2008 1-8/2009 Change 15 CMD 2009
Slide 16: Shopping Centre Retail Sales Area by Branches
Shopping Centre Retail Sales Area by Branches 13 % 25 % 3% Groceries 5% Clothes & Fashion Leisure & Home Supplies 7% Department Stores Cafes & Restaurants Health & Beauty Other Specialty Stores 10 % Services & Offices 21 % 16 % 16 CMD 2009
Slide 17: Shopping Centre Rental Income by Branches
Shopping Centre Rental Income by Branches 2% 9% 23 % 7% Groceries Clothes & Fashion Leisure & Home Supplies 8% Department Stores Cafes & Restaurants Health & Beauty 10 % Other Specialty Stores 23 % Services & Offices 18 % 17 CMD 2009
Slide 18: (Re)development projects
(Re)development projects 18 CMD 2009
Slide 19: Sustainable shopping centre – why and how?
Sustainable shopping centre –why and how? WHY? OUR ACTIONS • Energy and material costs will increase in the 1. Internal Green Shopping Centre Management future Programme to foster sustainable development in • Legislation will get tighter all Citycon shopping centres. Goals: • Consumers will be more
Slide 20: Ongoing (re)development projects: Åkersberga Centrum
Ongoing (re)development projects ÅKERSBERGA CENTRUM Refurbishment and extension of existing shopping centre in Greater-Stockholm area, north east of the city. The shopping centre is located in the centre of the affluent Österåker municipality and has very good public transportation. Originally build
Slide 21: Ongoing (re)development projects: Liljeholmstorget
Ongoing (re)development projects LILJEHOLMSTORGET Pilot project in sustainable construction. Construction of a new shopping centre south west of Stockholm city centre. Location is a major traffic hub, the whole area is being redeveloped Into attractive residential neighborhood. Existing building is
Slide 22: Ongoing (re)development projects: Rocca al Mare
Ongoing (re)development projects ROCCA AL MARE Pilot project in sustainable construction. Extension and redevelopment of existing shopping centre west of Tallinn city centre. After the project Rocca al Mare will be the largest centre in Estonia, large and affluent catchment area. Originally built in
Slide 23: Completed (re)development projects: Trio
Completed (re)development projects TRIO Trio was awarded the first LEED® (Leadership in Energy and Environmental Design) environmental certificate in the Nordic countries. The project included a total redevelopment of Trio, Lahti downtown shopping centre. The most important shopping venue in its lar
Slide 24: (Re)development projects under planning
(Re)development projects under planning FUTURE POTENTIAL: • Most of Citycon’s shopping centres offer extension and (re)development possibilities Organic growth potential without new acquisitions Citycon knows the possibilities: properties , tenants, catchment areas, local authorities Improving
Slide 25: Thank You!
Thank You! Q&A 25 ema: CcITYCON
Slide 26: Citycon's Financial Position
Citycon's Financial Position Eero Sihvonen, CFO Capital Markets Day in Iso Omena, 16 September, 2009
Slide 27: Latest Results – Q2 2009
Latest Results – Q2 2009 • Turnover increased by 3.3% to EUR 91.5 million • Direct result per share EUR 0.11 (EUR 0.09) • Loss/profit before taxes was EUR -28.7 million (EUR -62.1 m) incl. -57.6 million (EUR -85.1 m) change in fair value • Strong net cash from operating activities per share EUR 0.19
Slide 28: Quarterly direct result performance
Quarterly direct result performance - Consistent resilient growth* +32% EUR million 14,6 Annualised compound growth rate in excess 12,6 of 30 per cent through 11,8 11,6 11,3 the cycle 10,4 10,2 8,9 8,0 6,7 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 28 * Q4-07 include positive tax ga
Slide 29: Latest Results – Q2 2009
Latest Results – Q2 2009 • Balance sheet totalled at EUR 2,147.5 million • Equity ratio 36.2%, hedging ratio increased gradually, was 77% (74% at the end of Q1) • Average year-to-date interest rate 4.24% (Q2/2008: 4.90%). The period-end current run rate 4.10% , net financial expenses EUR 24.0 m (EUR
Slide 30: Property portfolio
Property portfolio • 4,080 (3,662) leases with an average length of 3.0 (2.8) years • GLA grew by 2.4% to 949,157m2 • Net rental income for like-for-like properties grew by 2.1% (excluding the impact of weaker SEK exchange rate) • Rolling 12-month occupancy cost ratio for l-f-l shopping centres was
Slide 31: Aging Structure of Trade Receivables
Aging Structure of Trade Receivables Aging Structure of Trade Receivables Over Time TEUR 3 000 2 500 Over 6 months 2 000 1-6 months 1 500 Less than 1 month 1 000 500 0 2/2009 3/2009 4/2009 5/2009 6/2009 2/2009 3/2009 4/2009 5/2009 6/2009 Less than 1 month 1 162 833 1 025 1 157 1 168 1-6 months 536 8
Slide 32: First possible termination year of the leases by contract type
First possible termination year of the leases by contract type 30 % 25 % 20 % Valid until further notice contract 15 % Initially fixed-term contract Fixed-term contract 10 % 5% 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019+ Fixed-term contracts expire at the end of the contract period, a
Slide 33: Leases valid until further notice by type
Leases valid until further notice leases by type 2% 2% 9% Retail 17 % Apartment Office Storage 70 % Other 33 CMD 2009
Slide 34: Snapshot of Statement of Financial Position
Snapshot of Statement of Financial Position Statement of Financial Position, EUR million 30 June 2009 30 June 2008 31 Dec 2008 Investment property 2,104.5 2,233.1 2,111.6 Total non-current assets 2,114.5 2,254.9 2,126.1 Current assets 33.0 38.1 52.4 Assets total 2,147.5 2,293.0 2,178.5 Total share h
Slide 35: Valuation yield development in the portfolio
Valuation yield development in the portfolio % 8 7,5 7 Finland Finland excl. Iso Omena 6,5 Sweden The Baltic Countries Total 6 5,5 5 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q1 2009 Valuation yield above is based on external valuator’s portfolio valuation. 35 C
Slide 36: NAV and Share Price
NAV and Share Price 10 0% NAV and Discount Share % Price EUR -18 % -26 % 8 -20 % -23 % -31 % -33 % 6 -48 % -40 % -48 % -60 % -60 % 4 -60 % 2 -80 % 0 -100 % Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Now EPRA NAV Share Price Discount 36 CMD 2009
Slide 37: Balance Sheet
Balance Sheet Opportunities to strengthen the balance sheet: • Joint venture possibilities on property level • Divestment of non-cores • The remaining residential portfolio in Sweden worth around EUR 50 million • New equity 37 CMD 2009
Slide 38: Share performance
Share performance 3,50 3,00 2,50 2,00 1,50 1,00 0,50 0,00 1.9.2008 1.10.2008 1.11.2008 1.12.2008 1.1.2009 1.2.2009 1.3.2009 1.4.2009 1.5.2009 1.6.2009 1.7.2009 1.8.2009 1.9.2009 FTSE EPRA Nasdaq OMX Helsinki CAP Citycon 38 CMD 2009
Slide 39: Key Figures – Financing Overview
Key Figures – Financing Overview Interest-bearing debt by fixing type Maturity profile of loans and derivatives 600 EUR 1,251.6 million 1) Loans (EUR 1,251.6) 500 482 Fixed derivatives (EUR 673.5m) Floating rate debt 405 23% Fixed rate debt 400 23% 300 229 195 200 172 93 90 Fixed rate swaps 100 66 7
Slide 40: Key Figures - Debt Portfolio
Key Figures - Debt Portfolio Breakdown by debt type Breakdown by currency EUR 1,251.6 million 1) EUR 1,251.6 million 1) Other LTL 1% 22% Syndicated term loans EEK 4% 48% EUR 62% SEK 33% Revolving credit facility 18% Bonds 12% • The backbone of the debt financing continues to be the syndicated term a
Slide 41: Thank You!
Thank You! Q&A 41 ema: CcITYCON
Slide 42: Overview of Leasing Situation Finland
Overview of Leasing Situation Finland Jukka Vakula, Regional Director Pekka Helin, Commercial Director Capital Markets Day in Iso Omena, 16 September, 2009
Slide 43: Contents
Contents • Retail Trade in Finland • Citycon Leasing • Measures • Overview of The Maturity Issue • Until Further Notice Leases – Analysis and Actions • Leasing Insight • The Concept of OCR% • Creating Success for Retailing 43 CMD 2009
Slide 44: Retail Trade in Finland
Retail Trade in Finland 44 CMD 2009
Slide 45: Finnish Retail Market - General
Finnish Retail Market - General • In 2008, the turnover of the retail sector was 35.8 billion EUR (up 5.4%)*, 2008 Retail Sales by Branch Groceries Department stores of which ca. 16% was shopping Hardware and paints centres. ** Pharmaceutical goods, cosmetics Clothing and textile • Sales estimates f
Slide 46: Finnish Retail Market - Operators
Chain Parent 2008 Sales, m€ Change, % Finnish Retail Market 1. S-market S-Group 3218 8,9 % - Operators 2. Prisma S-Group 2680 13,3 % 3. K-citymarket K-Group 1915 5,6 % 4. K-supermarket K-Group 1579 7,6 % • The daily consumer goods trade in 5. K-market K-Group 1494 6,5 % 6. Alko 1383 6,2 % Finland is
Slide 47: Finnish Retail Market
Finnish Retail Market Grocery Store Operator Market Share Development 1990-2008 • S-group has increased their market share since 1990 Market Share Development in Groceries 2008 Market Size 14.4 Billion Euros • Local co-operatives as retailers • Co-operation with SOK 2008 33,7 42,4 11,3 12,6 • Kesko
Slide 48: Finnish Retail Market
Finnish Retail Market Fashion Retailer Shares in Citycon SC’s vs. Total Fashion Retal Fashion Sales 3.1 Billion in 2007 – 50% of Sales in Specialty Stores • Market shares of the top Fashion retailers in Citycon shopping centres are slightly above the total market • H&M and Lindex have the biggest ov
Slide 49: The Biggest Retailers in Citycon Properties
The Biggest Retailers in Citycon Properties • Kesko (25% SC, 36% total). • Grocery driven, K-Supermarkets are good anchors in shopping centres • Anttila, Intersport, K-kenkä the main chains outside grocery • Recently lost some market share in grocery, strong in sport, shoes and electronics • 37 stor
Slide 50: Citycon Finland – Main Tenants
Citycon Finland – Main Tenants 10 LARGEST TENANTS BY GRI IN TOTAL PORTFOLIO, Q2 2009 NAME OF THE TENANT GLA, SQ.M. SHARE OF TOTAL GLA, % KESKO 216 600 37 % S-GROUP 26 800 5% STOCKMANN 15 100 3% TOKMANNI OY 18 500 3% H & M HENNES & MAURITZ OY 7 500 1% CITY OF ESPOO 8 100 1% RAUTAKIRJA 6 000 1% NORDEA
Slide 51: Citycon Leasing
A Citycon Leasing 51 eet CcITYCON
Slide 52: Leasing Measures
Leasing Measures Finnish Operations Number of leases started during the period Q1 Q2 Q3 Q4 Q1-Q4 2007 106 101 84 151 442 2008 100 93 66 193 452 2009 66 72 Total area of leases started during the period, sq.m. Q1 Q2 Q3 Q4 Q1-Q4 2007 16 900 24 350 14 510 18 640 74 400 2008 21 800 14 310 11 090 31 930
Slide 53: Citycon Leasing: Structure of Lease Agreements
Citycon Leasing Structure of Lease Agreements • Versatile and efficiently manageable lease portfolio as target • Diversified maturity • Anchor tenants - fixed term leases of 5-10 years • Secondary anchor tenants (e.g. fashion, restaurants) – medium- term leases of 3-5 years • Flexibility through sho
Slide 54: Lease Agreements - Technical Approach
Lease Agreements - Technical Approach UNTIL-FURTHER-NOTICE LEASES: • Are we worried or just is it a market practice? • Have they ended recently because of the market situation? • Have we been able to renew the contracts? • Do we try to get fixed term contracts? Are there any recent changes? • How ma
Slide 55: First Possible Termination Year of The Leases
First Possible Termination Year of The Leases by contract type, total lease portfolio, Finnish Operations 30 25 20 % of GRI € Fixed-term contract 15 Valid until futher notice contract 10 Initially fixed-term contract 5 0 2019+ 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 55 CMD 2009
Slide 56: First Possible Termination Year of The Leases
First Possible Termination Year of The Leases by contract type, Finnish Operations 2009-2010 % 30 Until-Further-Notice contracts 20% (retail units 16.8%) of total 25 Citycon level 18% of total 20 Status Q2/2009 % of GRI € 2009: 32 % terminated 15 2010: 14 % terminated 15,3% 10 5 4,7% 0 2009 2010 201
Slide 57: First Possible Termination Year of The Leases
First Possible Termination Year of The Leases by contract type, contracts started 2008-2009, Finnish Operations Until-Further-Notice contracts started: 31 % in 1979-1999 % % 50 % in 2000-2006 and 7 14 % in 2008-2009 7 A major share of contracts from various 6 transactions 6 5 5 % of GRI € % of GRI €
Slide 58: Lease Agreements: Analysis and Actions
Lease Agreements Analysis and Actions • Valid until further notice contracts ca. 20 % of total Finnish lease portfolio • New lease agreements are most often with fixed term • Until-further-notice contracts used in special cases like • When a development project starts / is on-going, as fixed term co
Slide 59: Maximizing The Occupancy
Maximizing The Occupancy Actions • Measures and constant follow-up • Leasing operations • Improved relationship building with retailers • Effective leasing operations and customer management • 18-month rolling leasing plan • Competitive advantage from innovative product management • Active and daily
Slide 60: Leasing Insight
y Leasing Insight 60 ema: CcITYCON
Slide 61: The Concept of Occupancy Cost Ratio (OCR)
The Concept of Occupancy Cost Ratio (OCR) Occupancy Cost Ratio 2008 Citycon Shopping Centres Total • The slower economic situation puts Rent/Turnover, % pressure on OCR discussions Other Specialty Stores • Understanding the business of a tenant Department Stores • Focus on footfall and sales increas
Slide 62: Creating Success for Retailing
Creating Success for Retailing A View of the Future Changes in “Who” buys • Portal development • Net generation and digital device development • Content creation and increased participation • New consumerism based on sustainability awareness • Product development • Tenant mix • E-retailing in shoppi
Slide 63: Summary
Summary • Tenant mix developed to more diversified one • Introduction of new retailers into the market • Speeding up leasing negotiations • Increase of turnover rents • Solving the franchise problem • Increasing of shopping centre sales by intensified marketing actions • Citycon service concepts – s
Slide 64: Thank You!
Thank You! Q&A 64 ema: CcITYCON
Slide 65: Latest from Sweden
Latest from Sweden Ulf Attebrant, Vice President, Swedish Operations Capital Markets Day in Iso Omena, 16 September, 2009
Slide 66: Crisis, what crisis? Or…
Crisis, what crisis? Or… Swedish retail sales, Total Sales, % change Month/Month (Source: HUI) 9 8 7 6 5 4 Total Sales, nominal Adjusted, real 3 2 1 0 • Better then expected - Over all positive trend – increasing volumes, but - lower margins for the retailers. • Bankruptcies: 41% increase - but stil
Slide 67: Retail Market - Sweden
Retail Market - Sweden • Swedish market characterized by a high degree of concentration - Convenience goods: 3 major operators account for 90% of total sales, ICA the dominant operator with 38% market share - 6 of the 10 largest retailers are Convenience goods retailers. - General merchandize : Top
Slide 68: The Retail Actors
The Retail Actors • Swedish retailers suffer – on top of weak market -from currency losses. • Strong companies are looking for weaker chains/Brands to add to their portfolio: i. e. RnB, Hemtex, Monki. • Fewer, but stronger, dominant retailers • But: International brands are re- entering, i.e Next 68
Slide 69: Consumers – Effects on Retail
Consumers – Effects on Retail • In spite of growing unemployment rate – most people feel secure and Lower optimistic about their own Lower taxes Interest future rate - Confident consumers Confidence • SEK/€ = domestic • Domestic spending , e.i travell – 17% • Raising prices for private homes Increas
Slide 70: Effects on the Investment Market
Effects on the Investment Market • Project pipeline postponed – healthy effect on some over heated sub-markets… • Re-developments stopped - Leasing not in place • Transaction: Very low activity, attempts to clean out secondary assets. • The income side rules: - Retailers will determine the fate of m
Slide 71: CMD 2009
71 CMD 2009
Slide 72: Strong target groups in the nearby area
4 STRONG TARGET GROUPS 100 000 lives* in the nearby area 38 000 works in the area 41 000 commuters change transportation in this point/day 172 000 Visitors to the healthcare center/day • CMD 2009 * Year 2015
Slide 73: Market
Market Liljeholmen Ringen Sickla Bredäng Globen Fruängen shopping Skärholmen Hagsätra Högdalen Kungens Kurva Farsta Centrum 73 CMD 2009
Slide 74: Floors of shopping and service
3 FLOORS OF SHOPPING AND SERVICE • Total investment: Approx. 190 M€ • Gross floor space: 90,000 sq m (GA) - Retail 29,000 sq m (NLA) - Med/care 12,000 sq m (NLA) - Car Parking 900 spaces • Expected retail sales: 120 M€/y • Visitors/y 8-9 Million • Number of stores 94 • Anchors ICA (Hypermarket), H&M
Slide 75: Brands
SYSTEM BOLAGET VERO MODA
Slide 76: Green – in practice
Green – in practice Pilot project for LEED 76 CMD 2009
Slide 77: The New Åkersberga Shopping Centre
The New Åkersberga Shopping Centre 77 CMD 2009
Slide 78: Stenungstorg SC & Jakobsberg, Re-development Project
Stenungstorg SC & Jakobsberg, Re-development Project 78 CMD 2009
Slide 79: Tumba Centrum Shopping Centre
Tumba Centrum Shopping Centre 79 CMD 2009
Slide 80: Welcome in October 22, 2009!
WELCOME IN OCTOBER 22, 2009! • 80 CMD 2009 18
Slide 81: Thank You!
Thank You! Q&A 81 ema: CcITYCON
Slide 82: Latest from the Baltic Countries
Latest from the Baltic Countries Harri Holmström, Vice President, Baltic Operations Capital Markets Day in Iso Omena, 16 September, 2009
Slide 83: GDP % change in 2009
GDP % change in 2009 Compared with the previous Compared with the same quarter quarter of the previous year Q1 Q2 Q1 Q2 Estonia -6.1% -3.7% -15.1% -16.6% Latvia -11.0% -1.6% -18.6% -18.2% Lithuania -10.2% -12.3% -11.6% -22.6% Source: Eurostat 83 CMD 2009
Slide 84: Unemployment rates
% 10,0 12,0 14,0 16,0 18,0 20,0 0,0 2,0 4,0 8,0 6,0 1999Q01 84 1999Q02 1999Q03 1999Q04 2000Q01 LATVIA 2000Q02 ESTONIA LITHUANIA 2000Q03 2000Q04 2001Q01 2001Q02 Source: Eurostat 2001Q03 2001Q04 2002Q01 Unemployment rates 2002Q02 2002Q03 2002Q04 2003Q01 2003Q02 2003Q03 2003Q04 CMD 2009 2004Q01 2004Q02
Slide 85: Consumer confidence indicator
Consumer confidence indicator 50 Estonia 30 Latvia Lithuania 10 2008m09 2008m10 2008m11 2008m12 2009m01 2009m02 2009m03 2009m04 2009m05 2009m06 2009m07 2009m08 -10 -30 -50 -70 85 Source: Eurostat CMD 2009
Slide 86: Volume of total retail trade
Volume of total retail trade % change compared with the previous month 10 5 0 Total trade Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 -5 Index, 2005 = 100 Estonia -10 Latvia 180 Lithuania 160 -15 140 120 % change compared with the same month Estonia 100 of the previous year Latvia 80 10 Lithuania 5 60
Slide 87: Food trade
Food trade Food trade % change compared with the previous month 4 2 0 -2 -4 Food trade -6 Estonia Index, 2005 = 100 -8 Latvia 180 Lithuania -10 160 140 120 Estonia Food trade 100 % change compared with the same month of Latvia 80 the previous year Lithuania 20 60 Estonia 15 10 Latvia 5 Lithuania 0 -
Slide 88: Baltic Future
Baltic Future 88 CMD 2009
Slide 89: Tourism
Tourism • Tallink announced an increase of 9 % in passengers on their ship between Helsinki and Tallinn in August compared to the previous year August meaning 851 919 passengers. For the whole summer the increase has been almost 20 %. • In total 1.5 Million Finnish tourists visited Tallinn last year
Slide 90: Food basket survey 09/2009
“Food basket” survey 09/2009 • A food basket of 20 grocery items was on average -34 % cheaper in Prisma Rocca al Mare than in Finnish hypermarkets! 45 40 35 30 EUR 25 20 15 10 Prisma, Lahti Prisma, Rocca al Mare Prisma, Joensuu Citymarket, Joensuu Citymarket Paavola, Lahti Prisma Malmintori, Helsink
Slide 91: Construction Costs % Change in 2009
Construction Costs % Change in 2009 Compared with the previous Compared with the same quarter quarter of the previous year Q1 Q2 Q1 Q2 Estonia -4,1% -3.9% -4,7% -8.8% Latvia -6.2% -4.3% -3.5% -10.8% Lithuania -7.6% -13.7% Construction volume index in Estonia 2000 - 2009 91 CMD 2009
Slide 92: New Shopping Centres in the Baltic Countries in 2008-2009
New Shopping Centres in the Baltic Countries in 2008-2009 Shopping centre Country City GLA Opening Tasku Estonia Tartu 9,000 08/2008 Pärnu Keskus Estonia Pärnu 7,000 03/2009 Port Arthur 2 Estonia Pärnu 6,000 06/2009 extension Riga Plaza Latvia Riga 41,000 04/2009 Panorama Lithuania Vilnius 65,000 11
Slide 93: Shopping centre Management Initiatives
Shopping centre Management Initiatives • Follow the sales figures • Boost the selected tenants’ sales by joint marketing • Help successful tenants through recession by adjusting rent to sustainable level • Bankruptcies cannot be avoided • Tenant mix should be in constant change 93 CMD 2009
Slide 94: Recent Major Shopping Centre Openings
Recent Major Shopping Centre Openings • SC Rocca al Mare second phase in May fully let • SC Riga Plaza in April with approx. 30 % vacancy • SC Ozas in Vilnius in August with approx. 50 % shops empty • Rocca al Mare third phase in November fully let? At the moment looks good! Please come and check! 9
Slide 95: Welcome!
Welcome! BBRESERVED ser SACK IONES <rcccM oun Vr, r AN sg CAFE Qnouse secaPE f 0 ¢ CA Al MARE Smoke esl pte Yn an bb ade A Sdn Wins os A. —_ CcITYCON
Slide 96: Thank You!
Thank You! Q&A 96 ema: CcITYCON
Slide 97: Sustainability in Citycon
Sustainability in Citycon Kirsi Borg, Manager, Sustainability Capital Markets Day in Iso Omena, 16 September, 2009
Slide 98: LEED Project Update, Green Program, Environmental Reporting
LEED Project Update Green Shopping Centre Management Program Environmental Reporting System 98 CMD 2009
Slide 99: About LEED®
About LEED® LEED® Leadership in Energy and Environmental Design Categories: Levels: LEED® •Sustainable Sites •Certified •Water Efficiency Green Building •Energy and Atmosphere •Silver Rating System™ •Materials and Resources •Gold •Indoor Environmental •Platinum Quality •Innovation and Design 99 CMD
Slide 100: First LEED certificate in Nordic countries
First LEED certificate in Nordic countries 100 CMD 2009
Slide 101: Q1/2010 Certified
Q1/2010 Certified 101 CMD 2009
Slide 102: Q1-2/2010 Platinum
Q1-2/2010 Platinum 102 CMD 2009
Slide 103: Green Shopping Centre Management Program
Green Shopping Centre Management Program 103 CMD 2009
Slide 104: Green Shopping Centre Management Program
Green Shopping Centre Management Program Tool for SC Management • Energy • Green • Water thinking in • Waste action Internal • Refrigerants • Recognition Auditing • Transport of system • Procurement Development • Training areas • Marketing • Monitoring 104 CMD 2009
Slide 105: Environmental Reporting System
Environmental Reporting System 105 CMD 2009
Slide 106: Green Impact Areas
Green Impact Areas Climate Change Energy Water Waste Land Use – Green Project Development 106 CMD 2009
Slide 107: Thank You!
Thank You! Q&A 107 ERE citycon
Slide 108: Iso Omena Update
Iso Omena Update Jukka Vakula, Regional Director Capital Markets Day in Iso Omena, 16 September, 2009
Slide 109: Iso Omena Update
Iso Omena Update citycon CMD 2009
Slide 110: Iso Omena – The Big Apple
Iso Omena – “The Big Apple” • Regional Shopping Centre in Espoo Matinkylä region 15 km from Helsinki CBD • The catchment area is growing and is one of the most affluent areas in Finland • It is the 5th largest shopping centre in Finland • Planned underground line with a station bordering Iso Omena w
Slide 111: Iso Omena – Update Q3-Q4/2009
Iso Omena – Update Q3-Q4/2009 Small extension by closing part of the floor opening Increase GLA and activate dead-end Refurbishment of existing retail area New retailers Effective sales figures 111 CMD 2009
Slide 112: Iso Omena – Future Extension
Iso Omena – Future Extension • Länsimetro – the Western underground line will be build 2014 from Helsinki (Ruoholahti) to Espoo (investment approx. EUR 715 million) • The construction is planned to start late this year. • The financing and political decision is in place. 112 CMD 2009
Slide 113: Iso Omena – Future Extension
Iso Omena – Future Extension • In the first phase, the end station of the future underground line will be Iso Omena (Matinkylä). • On 31 August, 2009 City of Espoo granted a planning reservation to Citycon and the construction company NCC for the future underground station site next to Iso Omena. •
Slide 114: Iso Omena – Future Extension
Iso Omena – Future Extension Planned underground station 114 CMD 2009
Slide 115: Thank You!
Thank You! Q&A 115 ema: CcITYCON
Slide 116: Contact Information
Contact Information INVESTOR RELATIONS Mr Petri Olkinuora CEO Tel. +358 207 664 401 [email protected] Mr Eero Sihvonen CFO Tel. +358 50 5579 137 [email protected] Ms Hanna Jaakkola IRO Tel. +358 40 5666 070 [email protected] 116 CMD 2009
Slide 117: Disclaimer
Disclaimer This document and the information contained herein is strictly confidential and is being provided to you solely for your information. This document may not be retained by you and neither this document nor the information contained herein may be reproduced, further distributed to any other