intu properties plc Economic impact report 2017 Contributing

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1 intu properties plc Economic impact report 2017 Contributing

2 2 intu properties plc Economic impact report 2017 Contributing 3 Creating value for our communities Our centres are great places for customers to shop, eat and enjoy themselves and engines for creating dynamic economic and social value. Every year we add billions to the economies of the UK and Spain through our investment in our centres, the jobs we generate and the taxes we, our tenants and employees pay. As the owners and managers of some of the best shopping centres in the UK and Spain, we play an important role in the lives of the communities around our centres. By creating compelling experiences that keep our customers coming back we can continually improve our centres, offer good-quality, long-term jobs and support local communities. David Fischel Chief executive Our gross added value (GVA) to the UK economy in 2017 was 4.6 billion. Most of that comes from the jobs we and our tenants provide about 130,000 nationally, over three per cent of the country s entire retail employment. intu supports total employment of 3,380 people and the equivalent figure for our tenants is just under 124,000. The combined wage bill of intu and our tenants was nearly 1.8 billion in million of this figure was income tax and national insurance. The resulting GVA in 2017 was 3.24 billion. Our centres contribute significantly through other taxes as well, notably through business rates million in 2017, one per cent of all business rates paid in the UK. Investing in our centres stimulates local economies by creating jobs, bringing in new businesses and new customers. In 2017 we spent 124 million upgrading and extending centres, mainly at intu Watford and intu Lakeside, which created an estimated 1,500 construction-related jobs. Over the next 10 years we plan to invest 1.4 billion in our UK centres, generating around 30,400 jobs and over 2.09 billion GVA. Our three Spanish centres created 1.24 billion of GVA, from 10,700 direct jobs and 12,730 indirect jobs. We have invested 493 million in Spain since 2013 and our million capital investment pipeline will continue to support the Spanish construction industry for the coming decade. We aim to create social value too - through good quality jobs with training and development, our apprenticeship and Retail Gold skills programmes which, working with schools and colleges have helped hundreds of people find work in our centres, as well as through partnering with our communities on projects to improve the lives of local people and support social issues from homelessness to health. Our contribution Find out more about our contribution to the UK and Spanish economies in the full report at intugroup.co.uk/en/about-us/corporate-responsibility/ 4.6bn total GVA 400m 7 footfall 11 1/ of UK population visit an intu centre each year Total combined direct employment at intu centres Total direct employment at intu centres across the UK 1. intu Metrocentre: 11, intu Trafford Centre: 10, Manchester Arndale: 9, intu Merry Hill: 8, intu Lakeside: 7, intu Watford: 7, intu Braehead: 6, St David s, Cardiff: 6, The Mall, Cribbs Causeway: 5, intu Derby: 4, intu Eldon Square: 4, intu Victoria Centre: 4, intu Chapelfield: 2, intu Potteries: 2, intu Broadmarsh: 2, intu Uxbridge: 1, intu Milton Keynes: 1, Sprucefield: Broadway (head office): 381

3 4 intu properties plc Economic impact report 2017 Contributing 5 How intu centres contributed to UK GVA We provide significant regional employment of the UK s retail jobs 3% are at an intu centre 98,830 direct employees 127,320 jobs across the UK We deliver significant support to local community projects 1.9m donated, direct and along with our tenants and customers, to charitable causes 28,000 hours volunteered by our staff to community projects 880 charitable organisations benefited 3,600 people reached through our community partnerships We contribute to the local, regional and national economy 86.1m intu wage bill 1.71bn intu tenants wage bill All of which results in a total economic contribution in 2017 of 4.6bn We invest in our centres and communities 352m invested in our centres over the past five years 18.3m 321.8m 124.4m invested in m business rates paid by intu and our tenants intu Income Tax and National Insurance intu tenants Income Tax and National Insurance 19,000 jobs created We are investing in the future 1.4bn UK development pipeline over 10 years Generating a further 30,400 jobs And creating a further 2.09bn GVA over the next 10 years

4 6 intu properties plc Economic impact report 2017 Contributing 7 Benefiting our communities We have a long-term community vision to create prosperity in our communities through placemaking by delivering skills and employment, health and wellbeing Assessing our economic impact Our economic impacts are generated across a range of different activities and types of economic output. intu Eldon Square intu Watford The diagram shows the framework we used for assessing impact, using recognised methodologies. intu total economic impact Capital investment intu operational jobs Tenant jobs Property taxes Direct/indirect jobs Over the next three years we plan to spend 1 billion on our UK and Spanish centres. This will bring gains to local communities many times the value of the original investment, through the new customers, businesses and local spending it generates. intu Eldon Square intu Eldon Square has been at the heart of Newcastle for 40 years. We have invested 225 million over the past 10 years to create a dynamic and stylish shopping centre for around 140 national and local businesses. In 2016 we opened a new 25 million restaurant quarter, which has injected a new vibrancy into the city s night-time economy bringing 300 new jobs and 27 million to the local economy. Overall we support 5,539 jobs in the area, 134 employed by us, 4,125 through our tenants and the rest in construction and other jobs created through our investment. In 2017, intu Eldon Square s contribution to the local economy through investment, construction and operational activity was 194 billion. intu Watford Since intu Watford opened in 1992 it has been a key part of the life of the town, employing 7,000 local people, creating long-term partnerships with the local authority and community groups and stimulating the local economy in 2017 our annual contribution was million. The new 180 million, 400,000 sq ft extension will add even more to this figure. Bringing an IMAX Cineworld, a Hollywood Bowl, 11 new restaurants and 14 new stores to the town, it will create a stunning 1.4 million sq ft retail and leisure centre in the UK s top 20. When it opens in autumn 2018 intu Watford will draw in new customers from across London and neighbouring counties. This extra economic activity is expected to create around 1,500 new direct and indirect jobs in the centre. Our Retail Gold academy is partnering with retailers to ensure local people have the skills to get these new jobs. What is Gross Value Added (GVA)? GVA is a measurement of our total economic contribution, including in kind. This wider impact is measured by looking at how many people us, and our Earnings GVA and tax contributions retailers, employ, taxes paid, and how much we invest in the areas in which our centres are located. These figures contribute to a GVA total. GVA measures the contribution 2017 corporate responsibility report Find out more at intugroup.co.uk/en/about-us/corporate-responsibility/ to the economy of a company, industry or sector in the UK, and is made up of the output minus the intermediary costs to produce it.

5 Contact: Alexander Nicoll Corporate responsibility director intu intugroup intugroup.co.uk Corporate Citizenship has provided an independent assurance of the methodology used in this report, evaluating it against the GRI Principles for Ensuring Report Quality. Corporate Citizenship s full assurance statement and commentary can be found in the responsibility section of the intu website: intu.co.uk/responsibility. The data points in this document are presented in terms of gross impacts, which does not take into account the degree to which the outcomes are net additional (or would occur in the absence of the intu asset) intu properties plc