Societe Fonciere Lyonnaise : SFL 2020 Interim Results (Slide show)

2020 Interim Results Presentation

29 JULY 2020

Overview

1

2

3

4

First-Half 2020 Significant Events

First-Half 2020 Rental Activity

Property Transactions

First-Half 2020 Financial Statements & Results

Appendices

2020 INTERIM RESULTS

29 JULY 2020

2

1

First-Half 2020 Significant Events

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1 Management of the Covid-19 crisis

Swift implementation of measures to limit the pandemic's impact

• All the Group's office properties remained open and available for use
• The conference centres (Edouard VII and #cloud.paris) and the Indigo hotel (Edouard VII) were closed
• Government measures concerning small retail outlets (less than 1% of the portfolio) were applied
• Tenant requests for help were managed proactively
• Agreements were drawn up and signed with general contractors working on the main redevelopment projects
• SFL has few vacant units and was largely unaffected by the rental market slowdown
• The Group's financial liquidity was strengthened
• Portfolio appraisal assumptions were revised (mainly for retail units)

Strategic resilience confirmed

SFL

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1 First-Half 2020 Significant Events

LETTING ACTIVITY

DEVELOPMENT

FINANCING

• Leases signed on ≈ 16,000 sq.m. during the period
• ≈ €10m of additional rental income per year
• 8.3-yearfirm revenue stream from new leases
• Average nominal rent of €867/sq.m. excl. tax (offices)
• Louvre Saint-Honoré (19,000 sq.m.)
• • Phase 1 (site clearance and asbestos removal) launched
• Biome (24,500 sq.m.)
• • Work resumed as soon as the lockdown was lifted
  • Partial demolition phase completed
• 83 Marceau (9,600 sq.m.)
• • Turnkey lease signed with Goldman Sachs on over 80% of the office space
  • Structural work resumed post-lockdown, inclusion of Goldman Sachs' requests
• New €500m 7-year 1.5% bond issue
• New €150m 5-year revolving line of credit
• Average cost of debt: 1.5%

SFL

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1 Key Indicators

Profit and Loss Account

• Rental income:	€91.2m	(down 6.9%)
• EPRA earnings:	€50.1m	(down 12.5%)
• Attributable net profit:	€113.7m

Statement of Financial Position

• Portfolio value (excl. transfer costs):	€7,239m	(up 1.1%)
• EPRA NNNAV:	€4,452m	(down 0.2%) (up 8.5% over 12 months)
representing	€95.7/share
Business indicators
• Average nominal rent (offices):	€680/sq.m./year
• Average lease maturity:	6.5 years
• Physical occupancy rate:	95.0%
• EPRA vacancy rate:	4.5%
Debt
• Average maturity:	4.7 years
• Average spot cost:	1.5%
• Loan-to-value:	24.3%
• Interest cover:	5.6x

SFL

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1 EPRA Performance Indicators

	H1 2020	H1 2019
EPRA Earnings	€50.1m	€57.2m
/share	€1.08	€1.23
EPRA Cost Ratio (incl. vacancy costs)	16.1%	13.2%
EPRA Cost Ratio (excl. vacancy costs)	14.3%	12.5%

	30 June	31 Dec.
	2020	2019
EPRA NAV	€4,606m	€4,623m
/share	€99.0	€99.4
EPRA NNNAV	€4,452m	€4,461m
/share	€95.7	€95.9
EPRA Net Initial Yield	2.6%	2.7%
EPRA topped-up Net Initial Yield	3.0%	3.0%
EPRA Vacancy Rate	4.5%	1.6%

SFL

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1 Paris Region Investment Market in First-Half 2020

A satisfactory performance under the circumstances

• Total Paris region investment volume in H1 2020: €7.7bn, down 25% on H1 2019 but still
  25% above the ten-year average:
• • After a very buoyant Q1, the market was badly hit by the lockdown in Q2, with investments down 64% vs. Q2 2019 at just €2.6bn
  • The French market as a whole was less severely affected, with H1 investment volume down 11% at €12.3bn
• As in prior periods, the majority of investments concerned office properties (€6bn, representing 78% of the market); however, H1 2020 saw a sharp rise in the amounts invested in retail and warehouse space (€1.1bn and €460m respectively)
• Volumes were down across all deal sizes except for the €100m-to-€300mbracket, where investments were up 21% vs. H1 2019 at €3.4bn
• The Western Crescent was the most buoyant segment in H1, with investment volume at a record high of €1.9bn, followed in second place by the Paris Central Business District (CBD), with €1.6bn.
• • There were no deals in the La Défense business district
• The market share of French investors increased to 69% (from 64% in 2019), largely due to the absence of Asian investors during the period
• The investment yield on prime office property deals was stable at 2.75%, reflecting a historically high risk premium (280 bps)

Paris region investment volumes

Ten-year average: €6.2m

Source JLL/Immostat

Some major deals carried out in H1

Aquarel	Joya	50 Anjou	64/66 Pierre Charron	Métal 57	URW portfolio
Issy-les-Moulineaux	Fontenay-sous-Bois	Paris 8	Paris 8	Boulogne
33,000 sq.m.	50,000 sq.m.	10,000 sq.m.	7,600 sq.m.	36,000 sq.m.	54% interest in five
€422m/3.60%	€222m/n.a.	€226m/2.60%	€190m/n.a.	€500m/3.65%	shopping centres
Vendor: Axa	Vendor: Quartus/	Vendor: Société Générale	Vendor: Foncière du	Vendor: BNP Paribas RE	€1.1bn/5.50%
Buyer: CNP	Europequipements	Buyer: Aviva	Triangle d'Or	Buyer: ACM/CDC	Vendor: URW
Assurances	Buyer: Ivanhoé Cambridge		Buyer: Crédit Suisse		Buyer: Predica/
					La Française AM

SFL

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1 Paris Region Rental Market in First-Half 2020

Paris region completed lettings	Stock of available properties: variable resilience depending on sector
	▪ The stock of immediately available properties at the end of H1 reflected the
	increase observed in Q1. Around 3 million sq.m. are available (up 10% over
	10 months), representing a 5.5% vacancy rate (vs. 4.9% in Q4 2019)
	▪ The resilience of the different market segments varies depending on the number
	of deliveries scheduled in the next two years:
	➢ The demand-drivenmarket in Paris should ensure that rents remain high.
	The market is used to absorbing demand well in excess of the new and
	redeveloped office space due to come on the market in 2020 and 2021
	➢ The supply-driven markets in La Défense and the Northern Inner Rim
	will be hit by an almost unprecedented excess of supply over demand, the
	effects of which will be felt for several years to come
	Balances and pressures in the Paris region markets

Completed lettings: a turbulent first half

• 667,500 sq.m. let in the Pars region, down 40% on H1 2019 and the ten-yearaverage:
• • Including 126,000 sq.m. leased by Total in The Link building (La Défense)
  • 197,500 sq.m. let in Q2 (down 65% vs. the ten-year average)
  • 2020 forecast: between 1.3m and 1.5m sq.m.
• Completed lettings were down sharply across all size segments, and particularly for very large units
• • Excluding the Total lease, the > 5,000 sq.m. segment would be down by 75% (vs. a 40% decrease including the lease)
• Excluding La Défense, completed lettings were down across all geographic segments
• • The CBD was more resilient than the other Paris markets. Although completed lettings in the capital fell more sharply than in the rest of the Paris region (down by 48%), the decline was partly due to the lack of available properties
• The average prime rent held firm at €870/sq.m. thanks to several large transactions in the Paris CBD

New/redeveloped units > 5,000 sq.m.: delivery scheduled in 2020-2021

New/redeveloped (over 2 years) units > 5,000 sq.m.: average completed lettings in 2010-2019

Source: CBRE/Immostat

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1 Analysis of Property Portfolio Value

Consolidated portfolio value up 1.1% vs. 31 December 2019:

€7,239m excluding transfer costs - €7,715m including transfer costs

Consolidated data (€m, excl. TC)

7 300
			7,239
		+44
7 200
			+1.1%
7,158	+37
7 100
7 000
31 Dec. 2019	CAPEX	Fair value adjustments	30 June 2020

Average value per sq.m.: €19,179/sq.m. excl. transfer costs

EPRA topped-up NIY: 3.0%

(3.0% at 31 December 2019)

• Topped-upNIY Offices: 3.1%
• Topped-upNIY Retail: 2.6%

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1 The Benchmark in the Paris Prime Commercial Property Market

€7,239m portfolio, 98.5% located in Paris,

as shown below:

19

	12 17			6
	2	16		10
		5
11	15		1
		18
	14
			4
	13

3

9

Market focus

(value)

1%

20%

79%

Offices

Retail

Residential

Geographic focus

(value)

7

20

8

16% 1%

83%

Paris CBD		Paris Other		Western Crescent

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1 SFL's CSR Policies

Certifications and labels

100% of the portfolio is certified

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1 Covid-19Impact in first-half 2020 (1/2)

• Asset management
• • All the Group's office properties remained open and available for use. Some services had to be closed (food services, concierge services)
  • Government-orderedhealth measures were implemented in the buildings' common areas
  • A Veritas audit confirmed that the seven main business centres were Covid 19-compliant
  • The conference centres (Edouard VII and #cloud.paris) and the Indigo hotel (Edouard VII) were closed
• Tenant management
• • Government measures concerning very small businesses were applied
  • Specific requests (mainly for rent deferrals) were dealt with on a case-by-case basis
• Impact on H1 2020 rental income:
• • Rent waivers: €(0.8)m
  • Lost revenue from Hotel Indigo, conference centres, Edouard VII car park: €(2.9)m gross/€(1.7)m net

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1 Covid-19Impact in first-half 2020 (2/2)

• Major redevelopment projects:
• • Approx. 2-month interruption (from mid-March until mid-May); gradual resumption over 1 month (mid-May to mid-June)
  • Impact on scheduled delivery dates: 3-to-6 month delay
• Rental market slowdown:
• • Few immediately vacant units in the portfolio
  • The Group successfully pre-let around 80% of 83 Marceau (Goldman Sachs turnkey lease)
  • Major challenges for H2 2020, 2021 and 2022
• A citizen-based approach:
• • All SFL employees began working from home on 17 March, without any loss of productivity. Employees have gradually returned to the office since 2 June
  • €550,000 was donated to Fondation de France
  • A vacant property was made available to a Ministry to meet Covid-19-related needs

The impacts were limited thanks to the Group's strategic positioning and low LTV

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2

First-Half 2020 Rental Activity

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2 Rental Income and Reversionary Potential

		H1 2020 rental income:
	stable like-for-like (excluding Hotel Indigo, conference centres, the Edouard VII car park)
						Reversionary potential
						(Consolidated data, 100% basis
						at 30 June 2020)
€100m						€68m
97.9	+0.3					€70m
		(2.9)
€95m						€60m
			(3.5)		91.2
				(0.6)	€50m
€90m						€46m*
						€40m
€85m						€30m
						€20m
€80m						€9m
						€10m
						€13m
€75m						€0m
						Properties undergoing renovation
€70m						• * Of which 53% pre-let
H1 2019	Like-for-like	Post-renovation	Lease	H1 2020	Vacant units
		remarketing/	termination	rental income
rental income	Hotel Indigo/	Relets
Major	penalties
	On assets	Conf. Centres/
	renovations
		EDVII car park

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2 Rental Income Breakdown

A diversified portfolio of very high value-added tenants

H1 2020 rental income: €91.2m

Breakdown by tenant business at 30 June 2020

2%

Other

17%

22%

Finance/

27% Insurance

Real estate

companies

6%

Manufacturers

9%

13%

Law firms/

81%

Public

Consultancies

organisations

12%

11%

Fashion

houses

Offices

Retail

Other

Digital/

DIGITAL/

Media companies

FINANCE/

LAW FIRMS/

REAL ESTATE

OTHER

FASHION

MEDIA

MANUFACTURERS

INSURANCE CONSULTANCIES

HOUSES

COMPANIES

COMPANIES

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2 Occupancy rate at 30 June 2020

Physical occupancy rate: 95.0%(1)

(vs. 97.4% at 31 December 2019)

Physical occupancy rate

100%

95%

90%

EPRA vacancy rate: 4.5%(1)

(vs. 1.6% at 31 December 2019)

EPRA vacancy rate

15%

10%

5%

85%					Jun 20200%
Dec 2017	Jun 2018	Dec 2018	Jun 2019	Dec 2019

(1) Surface area attributable to SFL

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2 Average physical occupancy rate: 95% excluding pipeline

	Washington Plaza	#cloud.paris	Cézanne Saint-Honoré	108 Wagram	90 Champs-Elysées	Rives de Seine
	Paris 8	Paris 2	Paris 8	Paris 17	Paris 8	Paris 12
100%	100%		99%	100%	100%	100%
	occupied
occupied	occupied		occupied	occupied		occupied

103 Grenelle	131 Wagram	9 Percier	Edouard VII	Louvre Saint-Honoré - Offices	92 Champs-Elysées
Paris 7	Paris 17	Paris 8	Paris 9	Paris 1	Paris 8
66%	100%	100%	99%	100%	100%
occupied	occupied	occupied	occupied	occupied	occupied

176 Charles de Gaulle	Le Vaisseau	Condorcet	9 Percier	6 Hanovre	Galerie Champs-Elysées
Neuilly-sur-Seine	Issy-les-Moulineaux	Paris 9	Paris 9	Paris 2	Paris 8

88%	0%	100%	100%	100%	99%
occupied	occupied	occupied	occupied	occupied	occupied

83 Marceau	Biome	Louvre Saint-Honoré - Retail
Paris 16	Paris 15	Paris 1
72%	0%	100%
Pre-let	Pre-let
Pre-let

Pipeline

Surface area in use

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2 H1 2020 Rental Activity

	≈ 16,000 sq.m.	Total surface area during the period
	€10m excl. tax and charges	Total nominal rent

Of which offices ≈ 10,000 sq.m.

€867/sq.m.	Average nominal rent (offices)
	13%*
€754/sq.m.	Average effective rent (offices)

8.3 years Non-cancellable period

* Incentive rate

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2 Letting Programmes and Occupancy Rates

Main leases signed in H1 2020

Edouard VII

Paris 9

99%

occupied

6,000 sq.m. Signed June 2020 12 years

66%

occupied

Washington Plaza	83 Marceau
Paris 8	Paris 16

100%	72%
occupied	pre-let

1,700 sq.m.	6,500 sq.m.
Signed May 2020	Signed May 2020
9/10 years	9/12 years
103 Grenelle	112 Wagram
Paris 7	Paris 17
	100%
	occupied

700 sq.m.	1,000 sq.m.
Signed March 2020	Signed January 2020
3/6/9 years	6/9/10 years

SFL	* Physical occupancy rate at 30 June 2020

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2 Lease Renewals

Commercial lease expiry dates

30%														26%
25%
						21%
20%
										18%				18%
							16%
15%						14%			14%	14%
10%									10%
				9%
						8%
		7% 7%
							6%
											5%
5%											4%	3%
					2%
0%												0%	0%
2020	2021	2022	2023	2024	2025	2026	2027	2028	> 2029
				Lease renewal date		Next break option

Average SFL office rent	Average period(1)	Average period to
at 30 June 2020:	to lease expiry:	next potential exit date(2):
€680/sq.m./year	6.5 years	5.3 years
(vs. €665 at 31 December 2019)	(vs. 6.6 at 31 December 2019)	(vs. 5.3 at 31 December 2019)

1. Weighted average remaining life of commercial leases in progress at 30 June 2020
2. Weighted average period to next potential exit date for commercial leases in progress at 30 June 2020

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3

Property Transactions

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3 Louvre Saint-Honoré (retail)

1. Administrative timeline

1. 1. Provisional building permit issued on 27 March 2019 o Final building permit obtained on 30 September 2019 o First modified building permit issued in June 2020
2. Operational timeline

• Completed:

1. Phase I (site clearance and asbestos removal) launched in June 2020. Contractors: Neom/Petit (Vinci)

• 1. Technical studies (PRO project studies, DCE company consultation file) launched. Contractor: Petit (Vinci)
  1. Location of technical networks and determination of requirements for the site to remain in use
• Outstanding:
• 1. Finish site set-up

1. Finish execution and consultation studies

1. Start demolition/rebuilding work (Q4 2020)

1. Expected duration: ≈ 40 months (excluding work commissioned by the lessee, Richemont, 12-to-18 months)

III. Marketing

1. Turnkey lease signed with SNC Cartier & Compagnie (Richemont Group) on 23 May 2018

1. Conditions precedent fulfilled

IV. Financial indicators

1. IRR > 10% o ROI > 7%

			Final building permit obtained
Turnkey lease signed with	Turnkey lease conditions
Lease start date
	conditions precedent	precedent lifted

Q4 2017

March 2019

September 2020

Work by lessee

May 2018

December 2019

December 2023

Technical studies

Building permit issued

Work to start

Cartier Foundation

gallery to open

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3 Louvre Saint-Honoré - Site Set-Up

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3 Louvre Saint-Honoré

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3 Biome

1. Administrative timeline

1. Provisional building permit issued on 22 May 2018, now final

1. Modified building permit obtained on 21 May 2019, appeal procedure now completed

II. Operational timeline

1. Site clearance and asbestos removal completed on 20 June 2019

1. General contractor appointed (Bouygues)

1. Partial demolition work completed, structural rebuilding in progress

III. Marketing and letting

1. Development of marketing aids completed (H1 2020)

1. Brokers appointed (BNP and CW) o Marketing to begin in late 2020

IV. Financial indicators

1. IRR > 7% o ROI ≈ 5%

			Site clearance and asbestos
Purchase contract signed
removal completed

Work delivered by

SFL

January 2017		May 2018		December 2019

		November 2017				June 2019				Q2 2022
Acquisition of the complex	Building permit issued	Start of redevelopment phase
				Final/modified building permits obtained

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3 Biome - A Landmark on the Left Bank

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3 Biome - A Landmark on the Left Bank

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3 Biome - A Landmark on the Left Bank

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3 83 Marceau

1. Administrative timeline

1. Provisional building permit issued on 28 December 2017, appeal process completed on 8 April 2018

1. Modified building permit application filed in December 2019

II. Operational timeline

1. Work launched in June 2019 following appointment of Eiffage Construction as general contractor

1. Structural work in progress; inclusion of changes requested by Goldman Sachs in the contract

III. Marketing

1. Marketing launched in May 2019

1. 29 May: over 80% of the office space let to Goldman Sachs under a turnkey lease o Tenant actively sought for remaining unit (first floor, 1,427 sq.m.)

IV. Financial indicators

1. IRR > 12% o ROI > 5%

			Redevelopment phase launched
				Asbestos removal completed	Delivery
	Building permit issued
April 2016			February 2019	May 2020

			December 2017	June 2019			Q3 2021
Technical studies	Final tenants moved out		Turnkey lease signed
							with Goldman Sachs

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3 83 Marceau - An Iconic Building in the Centre of Paris

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3 83 Marceau - An Iconic Building in the Centre of Paris

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3 83 Marceau - Goldman Sachs

• Investment bank's new European headquarters
  (continental Europe)
• 350 employees
• 72% of building pre-let (including Caixa)

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3 Units undergoing development/Pipeline

Stock* in sq.m.

63,900 sq.m.	60,900 sq.m.
31 December 2019	30 June 2020

Pipeline:
•	24,500 sq.m.	Biome
•	19,000 sq.m.	Louvre Saint-Honoré
•	9,600 sq.m.	83 Marceau
Other units undergoing development
•	3,600 sq.m.	Edouard VII	7,800 sq.m.
•	2,300 sq.m.	Washington Plaza
•	1,900 sq.m.	Other

* Attributable to SFL - Including infrastructure and excluding car parks

Pipeline KPIs

	BP/	O/S		ERV/Rent
Projects	capex	Delivery	Pre-let
MBP	(€m)
	(€m)
Louvre	✓	85 - 95	Q4 2023	16	✓	(100%)
Saint-Honoré
Biome	✓	90 - 100	Q2 2022	13 - 15		
83 Marceau	✓	30 - 35	Q3 2021	8.5 - 9	✓	(72%)
	✓	210 - 230	2021 - 2023	37 - 40		(60%)

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4

Financial Statements & Results

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4 First-Half 2020 Results

€m	H1 2020	H1 2019	Change
Rental income	91.2	97.9	-6.9%
Property expenses, net of recoveries	(4.8)	(5.3)
Net property rentals	86.4	92.6	-6.6%
Service and other revenues	1.0	2.7
Depreciation, amortisation, impairment and provision expense, net	(1.3)	(0.6)
Employee benefits expense and other expenses	(11.4)	(11.5)
Operating profit before disposal gains/losses and fair value	74.8	83.3	-10.1%
adjustments
Profit on asset disposals	0.0	0.0
Fair value adjustments to investment property	42.8	234.5
Finance costs and other financial income and expenses	(13.7)	(15.2)
Income tax benefit/(expense)	5.6	(17.2)
Profit for the period	109.5	285.4
Non-controlling interests	4.2	(31.8)
Attributable net profit	113.7	253.5
EPRA earnings	50.1	57.2	-12.5%

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4 EPRA earnings

		H1 2020	H1 2019	Change
€m
	Recurring	Non	Recurring	Non	Recurring
		EPRA	recurring	EPRA	recurring	EPRA
Rental income	91.2	0	97.9	0	-6.9%
Property expenses, net of recoveries	(4.8)	0	(5.3)	0
Net property rentals	86.4	0	92.6	0	-6.6%
Service and other revenues	1.0	0	2.7	0
Depreciation, amortisation, impairment and provision	(1.3)	0	(0.6)	0
expense, net
Employee benefits expense and other expenses	(11.4)	0	(11.5)	0
Operating profit before disposal gains/losses and	74.8	0	83.3	0	-10.1%
fair value adjustments
Profit on asset disposals	0	0	0	0
Fair value adjustments to investment property	0	42.8	0	234.5
Finance costs and other financial income and expenses	(13.5)	(0.2)	(13.2)	(2.1)	+2.8%
Income tax benefit/(expense)	(3.4)	9.0	(4.7)	(12.5)	-27.7%
EPRA earnings before non-controlling interests	57.9	51.6	65.4	219.9
Non-controlling interests	(7.8)	12.0	(8.2)	(23.6)
EPRA earnings	50.1	63.6	57.2	196.3	-12.5%
EPRA earnings per share	€1.08		€1.23

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4 Consolidated Statement of Financial Position

€m	30 June 2020	31 Dec. 2019
Assets
Investment property	7,125	7,045
Other non-current assets	53	37
Total non-current assets	7,178	7,082
Properties held for sale	0	0
Other current assets	370	133
Total current assets	370	133
Total assets	7,549	7,215
Equity and Liabilities
Equity	4,473	4,485
Non-controlling interests	537	552
Total equity	5,009	5,037
Non-current liabilities	2,184	1,696
Current liabilities	355	482
Total equity and liabilities	7,549	7,215

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4 Consolidated Loan-to-Value

	€m	30 June	31 Dec.	Change
	2020	2019
	Bonds	1,700	1,200	+500
	Mortgage loans	198	199	-1
	NEU CP	249	387	-138
	Total debt	2,147	1,786	+361
	Cash and cash equivalents	270	54	+216
	Net debt	1,877	1,732	+145
	Undrawn lines of credit	1,040	990	+50
	Property portfolio incl. TC	7,715	7,632	+83
	Loan-to-value	24.3%	22.7%	1.6pt
	Interest cover	5.6x	6.6x	-1.1x
	Average maturity (years)(1)	4.7	4.2	0.5
	Average spot cost of debt	1.5%	1.4%	0.1pt
	(after hedging)
(1) After allocating NEU CP issuance to back-up facilities

Maturities of debt at 30 June 2020 (€m)

700

600

500
								Undrawn lines of credit
400								Mortgage loans
300
							NEU CP
200								Bonds
100
0
2020 2021 2022 2023 2024 2025 2026 2027

New €500m 7-year 1.50% bond issue

€150m 5-year bilateral revolving line of credit

S&P rating:

BBB+/A2 with a stable outlook

SFL

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40

4 Net Asset Value

€m	30 June	31 Dec.	Change
2020	2019
Equity	4,473	4,485
Treasury shares and stock options	4	8
Unrealised capital gains	23	23
Elimination of financial instruments	(1)	(4)
at fair value
Elimination of deferred taxes	107	111
EPRA NAV	4,606	4,623	-0.4%
/share	€99.0	€99.4
Financial instruments at fair value	1	4
Fixed-rate debt at fair value	(48)	(55)
Deferred taxes	(107)	(111)
EPRA NNNAV	4,452	4,461	-0.2%
/share	€95.7	€95.9
Number of shares (thousands)	46,529	46,529

Growth in EPRA NNNAV (€m)

NNNAV at 31 December 2019	4,461
Change in fair value of attributable assets	64
Change in fair value of debt and other	2
financial instruments
EPRA earnings	50
Dividends	(123)
Other	(2)
NNNAV at 30 June 2020	4,452

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4 Key Figures

€m	H1 2020	H1 2019	Change
Rental income (IFRS)	91.2	97.9	-6.9%
Operating profit before disposal gains/losses and	74.8	83.3	-10.1%
fair value adjustments
Profit on asset disposals and fair value adjustments	42.8	234.5	NA
to investment property
Attributable net profit	113.7	253.5	NA
EPRA earnings	50.1	57.2	-12.5%

€m	30 June	31 Dec.	Change
2020	2019
Equity	4,473	4,485	-0.3%
Consolidated portfolio value (excluding TC)	7,239	7,158	+1.1%
EPRA NNNAV	4,452	4,461	-0.2%
/share
€95.7	€95.9

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42

4 Questions/Answers

www.fonciere-lyonnaise.com

SFL

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Appendices

2020 INTERIM RESULTS	29 JULY 2020		44

SFL in Brief

• The benchmark in Paris prime commercial property
• Founded in 1879: 141 years of sustainable business development
• 393,300 sq.m. property portfolio worth more than €7.2 billion
• 99% of assets in Paris, of which 83% in the CBD
• 79% offices and 20% retail units
• 20 very large property complexes
• A very high value-added tenant portfolio

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45

1 Property Portfolio: 393,300 sq.m.

	Paris	Total surface
	area(1)
1
Edouard VII	54,100 sq.m.
2
Washington Plaza	48,000 sq.m.
3
Louvre Saint-Honoré	47,700 sq.m.
4
#cloud.paris	35,000 sq.m.
5
Cézanne Saint-Honoré	29,000 sq.m.
6
Condorcet	24,900 sq.m.
7
Biome	24,500 sq.m.
8
Rives de Seine	22,700 sq.m.
9
103 Grenelle	18,900 sq.m.
10
106 Haussmann	13,400 sq.m.
11
83 Marceau	9,600 sq.m.
12
131 Wagram	9,200 sq.m.
13
90 Champs-Elysées	8,900 sq.m.
14
Galerie Champs-Elysées	8,700 sq.m.
15
92 Champs-Elysées	7,700 sq.m.
16
9 Percier	6,700 sq.m.
17
112 Wagram	6,000 sq.m.
18
6 Hanovre	4,600 sq.m.
	TOTAL	379,600 sq.m.

	Western Crescent	Total surface
	area(1)
19	176 Charles de Gaulle	7,400 sq.m.
	Neuilly-sur-Seine
20	Le Vaisseau	6,300 sq.m.
	Issy-les-Moulineaux
	TOTAL	13,700 sq.m.

Paris CBD

Paris Other

Western Crescent

1. Including infrastructure, excluding car parks

SFL

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46

Organisational Structure

François Sebillotte

Chief Resources Officer

Human Resources

Legal

Internal Audit

Information Systems

Corporate Services

Juan José Brugera Clavero

Chairman

Nicolas Reynaud

Chief Executive Officer

Dimitri Boulte

Managing Director

Dimitri Boulte

Chief Operating Officer

Lettings & Marketing

Investments

Asset Management

Technical & Development

Fabienne Boileau

Chief Financial Officer

Accounting

Consolidation

Budget Control

Cash Management & Financing

SFL

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Human Resources

Number of employees	30 June 2020	31 Dec. 2019
Administrative staff	1	1
Supervisors	12	12
Managers	59	59
Total headquarters	72	72
Building caretakers	2	2

			Employees(1) by age group											Employees(1) by years of service
			(on the payroll at 30 June 2020)											(on the payroll at 30 June 2020)
60 and over																	More than 15 years
50 to 59																		11 to 15 years
40 to 49																		6 to 10 years
30 to 39																		1 to 5 years
20 to 29																		Less than 1 year
0	5	10	15	20	25	0	5	10	15	20	25	30
						Average age:													Average years of service:
						44 years																			10 years

1. Excluding building caretakers

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Ownership Structure at 30 June 2020

FL ownership structure

(46.5 million shares)

Treasury shares

Free float 0.4% 4.7%

Prédica

13.2%

Colonial 81.7%

Colonial ownership structure

at 30 June 2020

Grupo

Finaccess

16%

Qatar

Investment

Authority

20%

Free float

58%

Aguila LTD

(Santo

Domingo)

6%

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49

Governance

Audit Committee

Board of Directors

Juan José Brugera Clavero

Pere Viñolas Serra

Najat Aasqui

Angels Arderiu Ibars

Ali Bin Jassim Al Thani

Jean-Jacques Duchamp

Carlos Fernandez-Lerga Garralda

Carmina Ganyet I Cirera

Carlos Krohmer

Arielle Malard de Rothschild

Luis Maluquer Trepat

Nuria Oferil Coll

Alexandra Rocca

Anthony Wyand

at 28 July 2020

Chairman of the Board of Directors (Colonial)

Vice-Chairman (Colonial)

Director (Prédica)

Director (Colonial)

Director

Director (Prédica)

Director (Colonial)

Director (Colonial)

Director (Colonial)

Independent director

Director (Colonial)

Director (Colonial)

Independent director

Independent director

Carlos Fernandez-Lerga Garralda (Chairman)

Jean-Jacques Duchamp

Carmina Ganyet I Cirera

Arielle Malard de Rothschild

Remuneration and Selection Committee

Anthony Wyand (Chairman)

Arielle Malard de Rothschild

Pere Viñolas Serra

Executive and Strategy Committee

Juan José Brugera Clavero (Chairman)

Jean-Jacques Duchamp

Carmina Ganyet I Cirera

Pere Viñolas Serra

Committee of Independent Directors

Arielle Malard de Rothschild

Alexandra Rocca

Anthony Wyand

SFL

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Share Performance

	H1 2020 share performance(1)
120
115
110
105
100
95						SFL: -3.8%
90
85
						CAC 40: -17.4%
80
						EPRA Europe: -22.7%
75
70
65						SIIC: -34.4%
60
55
50
Dec 2019	Jan 2020	Feb 2020	Mar 2020	Apr 2020	May 2020	Jun 202
	Cours SFL	CAC 40	Indice SIIC	EPRA Europe

1. Baseline 100: 31 December 2019; data up to 30 June 2020
   Sources: Euronext/EPRA

H1 2020 key figures(1)

Number of shares
at 30 June 2020	46,529

(thousands)
Average daily trading	1,480
volume (shares)
Average daily trading	€107k
volume (euros)
Closing share price on	€73.80
31 December 2019
High for the period	€83.40
21 February
Low for the period	€58.00
20 March
Closing share price	€71.00
on 30 June 2020

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51

Legal Structure

100%

100%

100%

100%

100%

SOCIETE FONCIERE LYONNAISE

SA

	66%	Washington
Locaparis
	SCI
SAS
Paul Cézanne
SCI	50%	Parholding
		SAS

103 Grenelle

SCI

	100%
Condorcet
SNC	100%
Maud
SAS	100%

SA (Société Anonyme)

SAS (Société par Actions Simplifiée)

SCI (Société Civile Immobilière)

SNC (Société en Nom Collectif)

Parchamps

SCI

Pargal

SCI

Parhaus

SCI

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Capex(1)

Expenditure (€m)	H1 2020	H1 2019
Major redevelopment projects	18.4*	6.0
Other capitalised expenditure	14.2	9.0
Total	32.5	15.0

* Of which: Biome: €8.4m; Louvre Saint-Honoré: €3.6m; 83 Marceau: €6.4m

1. Excluding capitalised borrowing costs and other expenses

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