ACT FOR TOMORROW
INTEGRATED STRATEGIC REPORT 2022
#
URBAN
TRANSFORMATION IN 10 QUESTIONS
ABOUT THE INTEGRATED
STRATEGIC REPORT
Inspired by the principles of "integrated thinking" and the framework proposed by the International Integrated Reporting Council (IIRC), Altarea's integrated strategic report highlights the Group's vision, business model, strategy and performance to create shared value with stakeholders and regions.
This report was drawn up
in a collaborative manner, thanks to the mobilisation of the Group's various departments. It has been developed in coordination with other corporate and financial publications, in particular the presentation of annual results. Theintegrated strategic report was reviewed and approved byAltarea's Management and Executive Committee before publication. The report covers thepast fiscal year, from
#01 | -2022 | |
P. 22 | #02 | - ACT FOR TOMORROW |
IN 10 --84 | ALTAREA |
URBAN
TRANSFORMATION
QUESTIONS…
- a straight answer to the big questions anyone may ask about the role and activities of a major real estate player today, in a complex environment. We shed light on these answers with
the help of external experts and the testimonials | #03 |
of our managers and our employees. | |
1 January to31 December 2022. The Group's entities are consolidated within the financial scope. Publication date: February 2023.
PS U M M A.R Y 02
ACT FOR TOMORROW…
- it means having an ambitious and innovative vision and strategy to develop sustainable and desirable cities. It means meeting major social and societal challenges by drawing on our unique range of expertise and a robust model.
#04 | #05 |
21 | #07 |
#06 | |
#10 | |
#09 |
#081
"MOBILISING THE ALTAREA COLLECTIVE FOR LOW-CARBONURBAN TRANSFORMATION"
ALAIN TARAVELLA
Chairman and Founder of Altarea
"In 2022, Altarea demonstrated strong resilience in an economic environment that gradually deteriorated during the year, marked in particular by the war in Ukraine, the return of inflation and the rises in interest rates and energy prices. Despite this generally tough environment, our business was driven by positive trends in our markets. I am thinking of consumers returning to physical retail, something that is now pretty much confirmed, and the dynamism
of the strategic sectors where Altarea is developing strongly: Logistics, Business property in the regions and new attractive regions for Residential.
Throughout the year, the Group's
teams demonstrated remarkable commitment and agility that enabled us to stay the course and seize opportunities. We have had great achievements in all business lines. If I could only cite one, it would be the delivery of Issy Cœur de Ville, in Issy-les- Moulineaux! A true "slice of the city", this district embodies both our vision of low-carbon urban transformation and the strength of our integrated model, with complementary expertise.
In 2023, this model will be a powerful asset in meeting the many challenges that arise. In an uncertain economy, the property market is expected to slow overall. Borrowing terms and the appetite and purchasing power for property will worsen further, affecting all customers. The year promises to be difficult, as we know, and we have prepared for it in a clear and proactive manner.
In response to this environment,
we decided to continue seeking new avenues of growth to enrich our skills base: urban logistics, data centres and charging infrastructure for electric vehicles. Following our initial success, we will launch other new activities in 2023, particularly in asset management and solar power development. The aim is to generate significant revenue in these new business lines and create new opportunities for mobility and development for our employees.
"In a year 2023 full of challenges, our ambition remains intact: to innovate together to meet the challenges of our customers and cities."
Other strategic priority for 2023:
continue our decarbonisation trajectory. This has of course been a major commitment for Altarea for several years, with significant advances that are shaking things up in the property market. But it is also increasingly becoming a key factor in generating value from property assets. With this in mind, we are continuing to expand our expertise to accelerate the transition to low-carbon construction. The recent 100% acquisition of Woodeum, the French leader in wood and low-carbon residential - in which Altarea had already been a 50% shareholder since 2019 - confirms this ambition.
In addition, I am convinced that, despite
the uncertain economic environment, needs will remain high in our markets. Our challenge and our priority will therefore be to remain more closely connected than ever to our customers, to anticipate and support their expectations as best as possible. Proximity to customers is at the very heart of our corporate culture and it is no coincidence that Cogedim has been awarded 'Customer Service of the Year' for the sixth consecutive year in its category and topped the 2023 HCG
- Les Echos customer relations rankings. This is one of our strengths and we must push it relentlessly, harnessing it to serve an unchanged ambition: to be the market leader in low-carbon urban transformation."
ALTAREA - ACT FOR TOMORROW - 2022
2 | 3 |
"SOLID OPERATIONAL
PERFORMANCE
IN MIXED MARKETS"
ALTAREA - ACT FOR TOMORROW - 2022
"In a mixed environment,
Altarea recorded a solid operational performance across all of its business lines in 2022. Retail in particular recovered to levels of activity last seen in 2019. While site footfall remains slightly down, the average basket of visitors has increased,
with dynamic marketing and a high occupancy rate.
In Business property, we hit our
growth targets by completing several value-creating transactions, such as the signature of three leases on our Landscape tower, in La Défense, the biggest high-rise building deal in the French market in 2022. Our positioning in four segments - Paris, the Paris Region, the regions, large-scale logistics - is proving to be a powerful asset given the cyclical nature of the business.
In Residential, the situation is more subdued despite stable revenue. Thanks to strong geographical diversification, 25% of our land sourcing was in geographical areas where we were not previously present. A record and an effective way to recharge the project pipeline. However, home sales slowed down in the last quarter, due in particular to the rise in interest rates, which limited the access of French people to home loans. We have also had to deal with a substantial rise in construction costs and the impact of the new RE2020 environmental regulations.
Even though residential supply
remains structurally insufficient to the needs of most major cities, we expect a complicated market
in 2023. The lack of visibility on key issues - such
as changes in interest rates or the effects of housing policies - should contribute to reducing demand from institutional investors and individuals.
In this environment, Altarea made the strategic decision to be more selective in its commitments, to get through this complex period in the best possible financial conditions.
Regarding Retail, footfall in our shopping centres and sales should remain high in 2023. The work to diversify retail assets over the last ten years or so constitutes a real competitive advantage for the future: for example, we are now well positioned in major shopping centres, retail parks and railway stations, the asset classes that accelerated most
in 2022, having been the most resilient to Covid and rebounded hardest after the crisis. Our ongoing diversification into the fast-expanding urban logistics sector is also a solid growth driver.
We are currently revamping
our sourcing in Business property so we can revive production after an expected dip in 2023. In line with our strategy, we will also continue to move ahead
in Business property in the regions and in large-scale Logistics, two markets that will remain buoyant.
At the heart of this strategy, the objective of increasing our 'green' revenue naturally remains a priority. It is with this in mind that we decided to acquire 100% of Woodeum, the leader in solid timber construction in France. This is also why we have implemented a carbon master plan in each of our shopping centres and defined a carbon trajectory by 2030 for each of our brands. At the same time, we are already developing around thirty residential pilot projects that already comply with future environmental regulations RE2020, RE2028 and RE2031. Despite the complex economic environment and even if it comes at a cost, our contribution to the climate challenge must be sustained, now more than ever, and will continue to occupy a central place in Altarea's strategy."
JACQUES EHRMANN
Group Chief Executive Officer, Altarea
"The 2022 results are in line with our objectives despite an uncertain economic environment: when certain markets slow down, it is the strength of our diversified model that we can activate other growth levers."
4 | 5 |
EXPERT AND AGILE
GOVERNANCE
Overall responsibility lies with the Management, who is Alain Taravella, Chairman and Founder. Alongside him, Jacques Ehrmann is the Group's Chief Executive Officer and a member of the Executive Committee. The Supervisory Board, chaired by independent member Christian de Gournay, oversees the Company's commitments and management.
ORGANISATION
MANAGEMENT | SUPERVISORY BOARD | |||
Control | ||||
14 | ||||
Defining and leading | ||||
the strategy | m e m b e r s |
MAIN SKILLS | - 2022 |
OF THE SUPERVISORY | |
BOARD | TOMORROW |
Supervisory Board members | |
have a wide range of skills that | |
reflect the variety of the Group's | FOR |
expertise, business lines and | |
- ACT | |
activities and are necessary for its | |
task of exercising permanent | |
control over the management | ALTAREA |
of the company. | |
8
C S R
12
R e a l e s t a t e ,
u r b a n p l a n n i n g , a rc h i t e c t u re
14
S t ra t e g y a n d
p ro j e c t d e v e l o p m e n t
EXECUTIVE MANAGEMENT | ||||
COMMITTEE | ||||
EXECUTIVE COMMITTEE | Ensures operational management | |||
by brand | ||||
Implementing and | MANAGERS COMMITTEE | |||
disseminating the strategy/ | ||||
mobilisation of employees | ||||
Initiates operational | Shares best practice | |||
Ensures internal synergies | ||||
solutions to achieve | ||||
strategic objectives | CROSS-FUNCTIONAL | |||
Enhances strategy | ||||
through business vision | COMMITTEES | |||
and expertise | Bring new knowledge into | |||
the business lines | ||||
Feed the strategy by sharing | ||||
experiences (finance, HR, DSI, CSR, | ||||
innovation) |
33%
I n d e p e n d e n c e ra t e
58 years
A v e ra g e a g e
6 years
A v e ra g e s e n i o r i t y
42%
Pe rc e n t a g e o f w o m e n
2
R e p re s e n t a t i o n o f e m p l o y e e s
97%
A t t e n d a n c e ra t e
CHRISTIAN DE GOURNAY
Chairman of the Altarea Supervisory Board
"In 2022, the Supervisory Board carried out structuring work to support Altarea's transformation. First of all, we undertook an in-depth review of the extension of our asset management activity into Business property and other property assets. This led us to express a positive view on this new strategic direction by Management. We also closely monitored the economic environment, its potential impacts on our activities and the way in which they were adapting.
In accordance with its mission, the Supervisory Board also continued to monitor the Group's greenhouse gas emissions trajectory and the related action plans, for example by analysing the financial consequences of short-term decarbonisation measures. It also oversaw the progress made with regard to the goal of increasing the number of women on the Group's management bodies.
12
F i n a n c e
10
C o m p a n y
m a n a g e m e n t
12
La w a n d t a x
11
A u d i t a n d r i s k s
6
C u s t o m e r s o l u t i o n s , i n n o v a t i o n a n d
n e w t e c h n o l o g i e s
EXECUTIVE | Rodolphe Albert | Rodrigo Clare |
Chairman, Histoire & Patrimoine | Chief Executive Officer | |
COMMITTEE | Nathalie Bardin | of Altarea Commerce |
Director of Strategic Marketing, | Vincent Ego | |
Alain Taravella | CSR and Innovation, Altarea | Chief Executive Officer of Cogedim |
Adrien Blanc | Karine Marchand | |
Founding Chairman of Altarea, | ||
Chairman of Altafi 2 (General Partner) | Chairman, Altarea Entreprise | Director of Human Resources, Altarea |
Jacques Ehrmann | Baptiste Borezée | Alexis Moreau |
Group Chief Executive Officer, Altarea, | Deputy CEO of Altarea, in charge | Chief Executive Officer of Pitch Immo |
Chief Executive Officer of Altafi 2 | of strategy, M&A and Group services | Julien Pemezec |
(General Partner) | Ludovic Castillo | |
Chief Executive Officer of Woodeum | ||
Éric Dumas | ||
Chairman of the Management Board, | ||
Chief Financial Officer, Altarea | Altarea Commerce |
6
A clear strategy and solid financial structure
The members of the Board reviewed the Group's major strategic directions
for 2023: continued recovery of activity in Retail, adaptation of offers to provide resilience in Residential, development of large-scale projects without significant financial risks in Business property. They were also informed of the prospects for expanding our business lines to include data centres and solar farms.
We will of course continue to monitor implementation of these strategies
in an uncertain economic environment. To cope with this environment, Altarea can count on a strong financial structure, with reduced debt and real room for manoeuvre. I am convinced that this is a major asset that will help us stay the course in coming years."
7
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Altaréa SCA published this content on 24 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 April 2023 15:47:11 UTC.