Klépierre, Retail Only 2015 FULL-YEAR EARNINGS

Transcription

1 Klépierre, Retail Only 2015 FULL-YEAR EARNINGS

2 DISCLAIMER This document was prepared by Klépierre solely for use of presenting the Klépierre 2015 full year earnings published on February 9, This document is not to be reproduced nor distributed, in whole or in part, by any person other than the Company. The Company takes no responsibility for the use of these materials by any person. The information contained in this document has not been subject to independent verification and no representation, warranty or undertaking, express or implied, is made as to, and no reliance may be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Neither the Company nor its shareholders, its advisors, its representatives or any other person shall be held liable for any loss arising from any use of this document or its contents or otherwise arising in connection with this document. In the event of any discrepancies between the information contained in this document and the public documents, the latter shall prevail. This document does not constitute an offer to sell or an invitation or solicitation of an offer to subscribe for or purchase any securities, and this shall not form the basis for or be used for any such offer or invitation or other contract or engagement in any jurisdiction. 2

3 TABLE OF CONTENTS HIGHLIGHTS 2015 OPERATING PERFORMANCE FINANCIAL PERFORMANCE RETAIL PORTFOLIO STRATEGY 05 OUTLOOK 3

4 2015 HIGHLIGHTS 01 Meridiano (Tenerife, Spain) 4

5 2015 FULL-YEAR EARNINGS HIGHLIGHTS +3.4% Shopping center net rental income like-for-like (1) increase, 300 bps outperformance vs. indexation +4.4% Retailer sales like-for-like (2) increase 2.16 Net current cash flow per share, up 4.2% vs. year end EPRA NAV, 8.0% increase vs December 31, 2014 EPRA NNNAV of 33.2, +12.2% (1) Like-for-like pro forma: includes Corio as if the Corio acquisition had occurred on January 1, Excludes contribution from acquisitions, new centers, extensions, spaces under restructuring and disposals completed since January 2014, and foreign exchange impacts. (2) Retailer sales performance for 2015 compared to 2014 assumes that the Corio and Plenilunio acquisitions occurred on January 1, Like-for-like excludes the impact of asset sales. Retailer sales from the Dutch portfolio are not included in these numbers as retailers do not report sales to Klépierre. 5

6 SUCCESSFUL INTEGRATION OF CORIO LEADING TO HIGHER AND FASTER SYNERGIES Expected costs synergies delivery schedule ( M, P&L impact before tax) (1) G&A costs synergies 60 Financial costs synergies e 2017e Successful and rapid integration of teams and assets Faster than expected delivery (full impact in 2017) Higher than expected (1) General & Administrative. 6

7 SWIFT DISPOSALS (C. 900M) ACROSS EUROPE 910M of disposals (1), following 2.5Bn disposed in 2014 Disposal of 16 convenience shopping centers with lower growth profile Major transformation of Klépierre portfolio s profile in the Netherlands The Netherlands Disposal of 9 shopping centers for a total consideration of 770M, average size of 26,300 sq.m. France-Belgium Disposal of 36 standalone retail units Eastern Europe Disposal of 5 shopping centers in Hungary, average size of 10,900 sq.m. Disposal of 1 shopping center in Poland (30,520 sq.m.) Southern Europe Disposal of 1 shopping center in Spain (10,400 sq.m.) Sweden Disposal of 1 storage unit, office (13,500 sq.m.) All disposals completed at or above appraisal value (1) Values including duties. 7

8 SEIZING THE BEST ACQUISITION OPPORTUNITIES Plenilunio (investment of 375M, footfall of 11M): consolidating Klépierre s leading position in Madrid Oslo City (investment of 336M, footfall of 10M): located in Oslo s main transportation hub, a strategic first entry for international retailers 8

9 2015 OPERATING 02 PERFORMANCE Centrum Galerie (Dresden, Germany) 9

10 CONSISTENT OPERATIONAL INITIATIVES TO KEEP RETAIL MOVING FORWARD Gradual deployment over the last 3 years Anticipate trends to accelerate re-tenanting Regeneration of tenant mix and expansion of leading anchors Original Clubstore concept Seeks to improve shopper experience with a holistic customer-centric approach Let s Play Promotes distinctive marketing & mall animation notably through digital innovation Good choices Cost efficiency and improvement of social and environmental footprint 10

11 YEAR-ON-YEAR OPERATING KPI IMPROVEMENTS (1/2) Retailer sales like-for-like (1) Net Rental Income like-for-like (1) growth above indexation (bps) Reversion rate (on renewals and relets) (1) 3.8% 4.4% % 7.7% 10.4% 11.6% 2.6% % 0.0% FY 2013 FY 2014 H FY 2015 FY 2013 H FY 2014 H FY 2015 FY 2013 H FY 2014 H FY 2015 (1) H and 2015 include former Corio assets. 11

12 YEAR-ON-YEAR OPERATING KPI IMPROVEMENTS (2/2) Bad debt allowance (1) EPRA vacancy rates (1) Operating costs and environmental performance 2.3% 4.4% -13% Energy consumption (kwh/visit (2) ) 1.9% 3.8% 76% Waste enhanced (+11% vs 2013) 1.7% 1.7% 1.7% 3.5% 3.2% 3.0% 10.4M Cumulative energy savings (2) FY 2013 H FY 2014 H FY 2015 FY 2013 H FY 2014 H FY % Green House Gaz (GHG) emission on portfolio (2) (1) H and 2015 include former Corio assets. H vacancy rate includes Boulevard Berlin and Centrum Galerie, which restructurings have been finalized in H (2) Like-for-like change pro forma vs

13 RETAILER SALES AT HISTORICALLY HIGH LEVEL CONFIRM KLEPIERRE S STRATEGY 2015 like-for-like (2) change in retailer sales Retailer sales up 4.4% in Klépierre malls, outperforming national indices in most countries 3.0% SCANDINAVIA January through November 2015, retailer sales outperformed the national indices (1) by 200 bps in France 560 bps in Italy 420 bps in Spain 2.0% FRANCE BELGIUM 14.8% GERMANY 7.3% CEE AND TURKEY Performance in Germany driven by Centrum Galerie (Dresden) and Boulevard Berlin 7.0% IBERIA 5.8% ITALY (1) In France, the CNCC index was up +0.4% over the first 11 months (in November, index down 5.9%). In Italy, the retail index ISTAT was up +1.0%. In Spain, the retail sales index from the INE (Instituto National de Estatistica) was up 3.3%. (2) Retailer sales performance for 2015 compared to 2014 assumes that the Corio and Plenilunio acquisitions occurred on January 1, Like-for-like excludes the impact of asset sales. Retailer sales from the Dutch portfolio are not included in these numbers as retailers do not report sales to Klépierre. Retailer sales excluding extensions are up 3.8%. 13

14 STRONG NET RENTAL INCOME LIKE-FOR-LIKE GROWTH Shopping centers: 3.4% likefor-like NRI growth, outperforming indexation by 300 bps Accelerated growth during H2 in Italy, Scandinavia and Iberia 80% of rental income contributed by France, Italy, Scandinavia and Iberia NRI Change (LfL (1) ) 2015 vs Average impact of index-linked rental adjustments France-Belgium 3.0% -0.2% % of shopping center net rental income France-Belgium 37% Italy 18% Italy 3.3% 0.1% Scandinavia 4.8% 1.2% Iberia 4.2% 0.0% CEE and Turkey 4.4% 1.0% Germany 4% Netherlands -0.8% 1.0% Germany 0.0% 0.0% Shopping centers 3.4% 0.4% Netherlands 7% CEE & Turkey 10% Iberia 9% Scandinavia 15% Life-for-like rental income growth vindicates asset selection and re-tenanting strategy (1) Like-for-like pro forma: includes Corio as if the Corio acquisition had occurred on January 1, Excludes contribution from acquisitions, new centers, extensions, spaces under restructuring and disposals completed since January 2014, and foreign exchange impacts. 14

15 DYNAMIC LEASING ACTIVITY Group reversion (1) at 11.6% (vs +7.7% in 2014) 28M worth of additional annual MGR recorded in 2015 Reversion (1) by region 1,862 leases signed in 2015, translating into 28M of additional Minimum Guaranteed Rents Includes 1,530 leases renewed or relet, accounting for 12.5M worth of additional annual Minimum Guaranteed Rents, or a 11.6% reversion rate 332 lettings of vacant spaces for more than 12 months, accounting for 15.5M worth of additional annual MGR France-Belgium 16.2% Italy 9.5% Scandinavia 5.8% Iberia 8.9% CEE and Turkey 15.9% Netherlands 7.5% Germany 2.7% TOTAL 11.6% (1) Reversion calculated on Minimum Guaranteed Rents for renewed and relet spaces. 15

16 VACANCY IMPROVEMENT UNDER WAY Vacancy rate reduced by 60 bps vs H at 3.8% Revenue synergies will be captured through vacancy reduction in acquired Corio assets EPRA vacancy rate by region Corio acquired assets: vacancy rate 1H France-Belgium 3.0% -370 bps Italy 2.1% 15.6% Scandinavia 4.5% Iberia 6.3% CEE and Turkey 5.2% Netherlands 3.3% Germany 8.0% TOTAL 3.8% -40 bps 9.1% 8.7% -20 bps 2.2% 2.0% 11.9% -230 bps 5.6% 3.3% -20 bps 8.2% 8.0% -60 bps 8.6% 6.4% 6.7% 6.1% France Italy Iberia Netherlands Germany Turkey Total 16

17 CONTINUOUS EXPANSION OF LEADING ANCHORS Priority to accelerate retailers expansion and refresh the retail offer in our leading centers Créteil Soleil (France; 3,240 sq.m.) Val d Europe (France) Extension of 2,700 sq.m. Porta di Roma (Italy) Extension of 3,300 sq.m. Val d Europe (France, extension of 3,300 sq.m.) Meridiano (Spain; 2,100 sq.m.) La Romanina (Italy; 2,700 sq.m.) Hoog Catharijne (Netherlands; 3,500 sq.m.) Besançon (France; 2,800 sq.m.) Saint-Jacques (France; 3,200 sq.m.) Blagnac (France; 950 sq.m.) First Uniqlo store in the Toulouse region Plenilunio (Spain; 1,700 sq.m.) Grand Place (France; 2,200 sq.m.) Besançon (France; 1,580 sq.m.) Grand Sud (France; 820 sq.m.) Créteil Soleil (France) Additional space to create the largest store (11,240 sq.m.) in France, French headquarters moved to Créteil Soleil LPP, a total of 6,000 sq.m. Corvin Plaza (Hungary; 4,200 sq.m.) Duna (Hungary; 1,800 sq.m.) 17

18 UNCOMPROMISING REGENERATION OF TENANT MIX Emporia (Malmö, Sweden) Field s (Copenhagen, Denmark) Nailloux Outlet Village (Toulouse, France; 1,500 sq.m.) Cholet Marques Avenues (Cholet, France; 1,200 sq.m.) Val d Europe (Paris) Gulskogen (Norway) Les Passages (France) Kupolen (Sweden) Alexandrium (Rotterdam, Netherlands) Boulevard Berlin (Berlin, Germany) Les Passages (Boulogne, France) Gulskogen (Drammen, Norway) Porta di Roma (Rome, Italy) Nave de Vero (Venice, Italy) Alexandrium (Rotterdam, Netherlands) Meridiano (Tenerife, Spain) Emporia (Malmö, Sweden) Les Passages (Paris, France) Merignac (Bordeaux, France) Fields (Copenhagen, Denmark) Mondeville (Caen, France) Boulevard Berlin (Berlin, Germany) Val d Europe (Paris, France) Les Passages (Paris, France) Nový Smìchov s (Prague, Czech Rep.) 18

19 PASSAGES: +25% ANNUALIZED GROSS RENTS VS 2012 Clubstore implementation in 2013 More than 26% of new stores in 3 years, 15 new retailers +25% of annualized minimum guaranteed rents vs 2012 level Good Choices : Energy consumption down 26% in 2 years Footfall: 6.1M The implementation of the Clubstore in 2013 transformed this well-established city center into a vibrant, modern, chic and cozy mall Boulogne, France Alice Delice Celio Club Exki Kiko Kusmi Tea Lollipops Mango Massimo Dutti Rituals Superdry Swarovski The Kase Undiz Zara 19

20 CRÉTEIL SOLEIL: +2 MILLION IN ANNUAL FOOTFALL SINCE JUNE 2014 Largest Zara in France and soon the largest Primark in Continental Europe Renovation to Clubstore standard planned 10,000 sq.m. extension planned In 2015: Retailer sales up 8%; reversion rate: +15% on average Good Choices : Energy consumption down 14% Footfall: 20.1M The arrival of Primark in this leading regional mall in 2014 was a first step toward rejuvenating the mix and developing a fashion mall Paris, France Amorino Burger King Calzedonia Desigual Footlocker H&M IdKids JD Sports Kiko Levi s Mango Primark Pull&Bear Swarovski Undiz Via Piano Zara 20

21 MERIDIANO: 2015 NET RENTS UP MORE THAN 25% VS 2013 Clubstore implementation in 2015 with a hype food court, sky bar lounges and leisure area Regeneration of anchors 2015 net rents 27% over 2013 level Footfall up 26% in 2014 Good Choices : energy consumption down 16% in 2 years. 100% electricity from renewable sources Footfall: 8.1M Active asset management since 2013 to strengthen the center in the Canary Islands. Has become the place to meet on the island Tenerife, Spain Bershka Calzedonia Guess H&M Intimissimi Kiko Levi s Mango Massimo Dutti Oysho Primark Pull & Bear Stradivarius Zara 21

22 EMPORIA: RETAILER SALES AND NET RENTS UP MORE THAN 10% IN 2015 Originally designed as Clubstore in 2012 Sales up 10.4% in 2015 Footfall up 7% in 2015 Shopping center valuation up 13% in 2015 Good Choices : A spectacular 27,000 sq.m. green roof. Footfall: 6.7M Opened in November 2012 in a unique location, quickly established itself as the most well-known and preferred shopping center in Southern Sweden Malmö, Sweden Apple Boss Denim&Supply Desigual Footlocker H&M Hamley s Hollister Illums Bolighus Mango Pandora Sand Tiger of Sweden Victoria s Secret Zara 22

23 FIELD S: SUSTAINED OUTPERFORMANCE IN RENTAL AND VALUE GROWTH Clubstore implementation started in 2015 with the cinema and a food offer regeneration (gourmet chef ) Net rents like-for-like growth of 8% in 2015 Shopping center value up 16% since year-end 2013 Good Choices : energy consumption down 21% in 2 years Footfall: 7.8M The #1 shopping and entertainment center in Copenhagen. Extended in 2015, continues its historical growth and remains a state-of-the-art retail and entertainment destination Copenhagen, Denmark Babysam Desigual Footlocker H&M H&M Home JD Sports Levis Store Nike Shop Superdry The Body Shop The North Face Tiger of Sweden Toy R Us Victoria s Secret Zara 23

24 PORTA DI ROMA: 10% VALUE INCREASE IN 2015 FOR THE # 1 SHOPPING CENTER IN ITALY Refurbishment to Clubstore in progress for delivery in 2016 Expansion of anchors In 2015: total reversion rate of +29% on 21 leasing operations signed Footfall and retailer sales up above 5% Shopping center valuation up 10% Good Choices : energy consumption down 12% in 2 years. 100% of electricity from renewable sources Footfall: 18.3M The #1 shopping center in Italy. 130,000 sq.m. of unparalleled fashion offer Rome, Italy Alcott Apple AWLab Bershka Calzedonia Footlocker H&M Intimissimi Kiko MAC Cosmetics Pandora Pull&Bear Swarovski The Body Shop Zara 24

25 CAMPANIA: RETAILER SALES AND FOOTFALL INCREASED MORE THAN 10% IN 2015 Active retenanting Sales growth above country s average in 2015: Total reversion rate of +12% on 15 leasing operations signed; retailer sales up almost 15%; shopping center valuation up 11% Let s Play : unique fully equiped entertainment venue (Piazza Campania) Good Choices : 93% of waste enhanced and 57% of waste recycled Footfall: 12.5M #1 regional mall in Naples hosting a flagship Zara (3,500 sq.m.), Apple, H&M and fully equipped entertainment venue Naples, Italy Adidas Alcott Apple Bershka Calzedonia Footlocker Guess H&M Hollister Mondo Convenienza Pandora Stradivarius Tiger Zara 25

26 NOVY SMICHOV: +20% REVERSION ON TOTAL RENTS CAPTURED SINCE 2013 Clubstore implemented in % of total leases relet or renewed since Significant reversion level continues: 52% reversion on MGR for units relet in % value increase since since end of 2012 Good Choices : BREEAM in Use rated Excellent in 2015 Footfall: 20M A premium asset in Prague, more than 20 million visitors a year, actively re-tenanted following the Clubstore refurbishment in 2012 Prague, Czech Republic Armani Calzedonia Desigual Estee Lauder Jeff de Bruges Kiehl s Kusmi tea MAC Starbucks Swarovski The Body Shop Tommy Hilfiger 26

27 LET S PLAY BOOSTING FOOTFALL, SALES & LOYALTY XXL DAYS IN FRANCE (27&28 NOV. 2015) 40 shopping centers in France-Belgium participating in the XXL Days (3 days) A very appealing commercial offer: 85% of retailers took part, with discount up to 70% ACHIEVEMENTS Traffic: event created 500 bps of additional traffic growth these days compared to average national trend (1) Sales up 12% in a challenging backdrop: Paris region (+8%) and Province (+16%). 17M of additional retailer sales generated in 3 days 83% of retailers wish to repeat this event (1) +0.3% vs -4.6% 27

28 2015 FINANCIAL PERFORMANCE Brunn s Galleri (Aarhus, Denmark) 03 28

29 NET RENTAL INCOME UP 3.2% LIKE-FOR-LIKE PRO FORMA (TOTAL SHARE) ( M) ,101.3 o/w Carmila: M Wereldhave: M o/w Plenilunio (Spain): 14M , , % /31/2014 Net rental income (reported) 12/31/2014 Net rental income (pro forma (1) ) Disposals Acquisition/ Developments Reversion & indexation 12/31/2015 Net rental income current basis excl. Forex Forex 12/31/2015 Net rental income Total share, M 12/31/ /31/2014 (pro forma (1) ) 12/31/2014 (reported) Total gross rents 1, , o/w shopping centers 1, , Total net rental income 1, , o/w shopping centers 1, , (1) Pro forma: includes Corio as if the Corio acquisition had occurred on January 1, Excludes the impact of asset sales, other acquisitions, extensions and foreign exchange impacts. 29

30 NET CURRENT CASH FLOW UP 4.2%: 2.16 PER SHARE M, total share 12/31/ /31/2014 Change Shopping centers net rental income 1, % Total net rental income 1, % M, total share Operating cash-flow % Net current cash flow % M, group share Net current cash flow % Net current cash flow per share ( ) % Average number of shares excl. treasury shares (1) 306,803, ,912,339 Net current cash flow growth driven by: Solid underlying growth Operating improvement Significant decrease in net cost of debt (1) Average number of shares, excluding treasury shares. Further to the Corio acquisition, the average number of shares takes into account the creation of new shares on January 8, 2015, new shares on January 15, 2015 and new shares in March

31 CONTINUOUS IMPROVEMENT OF FINANCIAL PROFILE Stabilized leverage Lower cost of indebtedness Net debt of 8,857M 39% LTV A- (stable) rating Cost of debt 2.5% (-50 bps) Interest Cover Ratio: 4.5X (+100 bps) LTV & Net current cash flow evolution Cost of debt & ICR evolution 49% 47% 45% 43% 41% 39% 37% 35% 47% 1.96 Net current cash flow per share 46% % 44% % Disposal in Netherlands 42% LTV Impact of Plenilunio s acquisition 39% H Strong discipline to keep LTV below 40% ICR Cost of debt 4.5X 3.6X 4.0% 2.8X 3.0X 3.5% 3.0% <2.5%

32 2015 REFINANCINGS: LONGER DEBT / LOWER COST Active debt management Bond issuance & buybacks Credit line repackaging US Private Placement redemption M Repayment Amend & extend New financings Bonds ,177 >60% of former Corio s debts already refinanced (Bonds, US Private Placements repurchased and Revolving Credit Facilities) Revolving Credit Facilities 1,600 Exceptional refinancing conditions with, for instance, a new 8Y benchmark bond issue for 750M at 1% coupon in April 2015 US Private Placements -934 DEBT REDEEMED Weighted Average Maturity <3Y AVERAGE YIELD 4.8% NEW FINANCINGS Weighted Average Maturity >7Y AVERAGE YIELD: 1.7% 32

33 SOLID BALANCE SHEET Debt Maturity Schedule (% of authorized debt) Total 8.8Bn debt sources of financing remain diversified in accordance with asset profile Drawn Undrawn Bonds 66% 23% 12% 9% 6% 10% 15% 2% 8% 9% Mortgage loans 17% Commercial paper 15% Others 2% Liquidity remains high Over 2.5Bn with an average duration of indebtness of 5.5 years Debt in fixed-rate position stood at 81% (1) with defined targets and is composed of: 69% of fixed-rate debt 15% of fixed payer swaps, 16% of caps Limited FX exposure 80% of debt position in euros (1) 77% at end 2015, 81% afther the hedging of the new 350 Ducth term loan. 33

34 SHOPPING CENTER PORTFOLIO VALUE UP 5.0% ON A LIKE-FOR-LIKE PRO FORMA BASIS TOTAL SHARE (2) GROUP SHARE (2) M, excluding duties 12/31/ /31/ /31/ /31/2014 D 12-month likefor-like pro forma (1) France-Belgium 8,403 6,539 7,002 5, % Italy 3,606 1,514 3,560 1, % Scandinavia 3,955 3,413 2,219 1, % Iberia 1, , % CEE & Turkey 1,736 1,095 1,708 1, % Netherlands 1, , % Germany 1, , % TOTAL SHOPPING CENTERS 21,693 13,308 18,390 10, % Other activities % TOTAL 22,127 13,821 18,824 10, % of which Equity accounted Investees 1,858 1,476 1,590 1,345 Average yield of the shopping center portfolio (12/31/2015): 5.7% excluding duties (-40 bps compression over 12 months) (1) Like-for-like profoma: Assuming that the Corio acquisition has occurred on January 1, Excludes the impact of new centers opened, acquisitions, asset sales completed since January 1, 2014, extension capex and foreign exchange impacts. (2) Excluding duties, including development and shopping centers accounted under equity accounted investees. 34

35 EPRA NAV OF 34.7, UP 8.0% OVER 12 MONTHS In euros per share 12/31/ /30/ /31/2015 Change (12 months) EPRA NAV % EPRA NNNAV % 12-month change in EPRA NNNAV per share (2) 12/31/2014 Cash flow Dividend LfL asset revaluation Transaction costs and purchase price adjustments Forex and others 12/31/2015 Change of FV of financial instruments 12/31/ ,104,723 (1) 311,457,530 (1) (1) Number of shares end of period (excl. treasury shares) (2) A 0.91 interim dividend per share was paid up by Klépierre on January 12, 2015 (199,470,340 shares) followed by a 0.69 final dividend per share paid up on April 21, 2015 (314,356,063 shares) 35

36 PROPOSED 2015 DIVIDEND: 1.70 PER SHARE Dividend (in euros per share) evolution Non-SIIC SIIC (2) % 79% 77% 79% 81% Proposed dividend: 1.70 (2) per share (29% SIIC): to be paid on April 26, 2016 (ex-date: April 22, 2016) PAYOUT (1) 0.50 (1) Dividend per share x number of shares (including treasury shares) / Net current cash flow (2) Submitted to a vote of the shareholders at their April 19, 2016 general meeting 36

37 RETAIL PORTFOLIO STRATEGY 04 37

38 OUR SHOPPING CENTER PLATFORM: COMPETITIVE ADVANTAGES TO GENERATE FUTURE GROWTH Key success factors Focus on demographics Being positioned in the most dynamic territories (Platform extended with 2 acquisitions) Location Optimal connections to transport infrastructures Investing on existing properties Clubstore Let s Play Good Choices 38

39 CLUBSTORE : REVITALIZING OUR MALLS Investing to renovate properties and upgrade the customer path and appeal to retailers Clubstore concept Deployment: 8 already implemented in 2 years, 8 ongoing deployments, 6 projects Relevant impact on Key Performance Indicators with strong boost on footfall and reversion 39

40 VALUE CREATION THROUGH TECHNOLOGY Mature & Profitable Well-established and ongoing deployment Test & Learn Digital ad screen: 23 shopping centers equipped in France (more than 300 screens) and ongoing international deployment The digital ecosystem: gradual roll-out of dedicated and upgraded websites for shopping centers (75 in 2015, 100 in 2016e) Pushing digital to the mall: test & learn logic for web-to-store innovations (IBeacon, Fidzup) 40

41 GOOD CHOICES : FOR RELEVANT, TRANSPARENT AND EFFICIENT SUSTAINABLE PRACTICES MEETING ENVIRONMENTAL & SOCIETAL CHALLENGES FIGHTING CLIMATE CHANGE -12% in Green House Gaz emissions vs (1) >50% Electricity from renewable sources DEVELOPPING ACCESSIBILITY +4% visits by public transportation vs CLEAR RECOGNITION OF OUR LEADERSHIP ON SUSTAINABILITY MATTERS CERTIFICATIONS ALL OVER EUROPE 77 Centers certified in 13 countries 64% portfolio in value BEST IN CLASS RATINGS #2 Retail global player - listed #1 Retail global player non listed (through Steen & Strøm) Only real estate player included in the Euronext Low Carbon Europe 100 (1) Like-for-like change pro forma vs

42 HOOG CATHARIJNE THE RETAIL SPOT IN THE NETHERLANDS (UTRECHT) A prime location connecting the Central Station (90M passengers) and the historic city center 40-year track record as an excellent spot for retailers (H&M recently doubled its size with a 3,500 sq.m. store) An ambitious development scheme to unleash the full potential of the site (GLA of 98,000 sq.m., Footfall of 39M) 42

43 VAL D EUROPE: CAPITALIZING ON AN EXISTING SUCCESS (FRANCE, PARIS REGION) H An iconic destination in the east of Paris, a strategic stronghold for Klépierre The fastest growing shopping center in France with net rents CAGR of 7% since 2000 The 17,000 sq.m. extension has already attracted iconic brands (Primark, Uniqlo, H&M, Nike ) 43

44 PRADO: AN ICONIC AND UPSCALE CENTER FOR MARSEILLE (FRANCE) H Located in the most affluent area with perfect connection to public transportation Iconic open air architecture featuring impressive shop facades and high quality terraces A 23,000 sq.m. retail assets: 53 retail units anchored by Galeries Lafayette (9,400 sq.m.) 44

45 CRETEIL SOLEIL REJUVENATING A STRONG RETAIL MAGNET (FRANCE, PARIS REGION) H A unique retail platform in Eastern Paris attracting more than 20 million visitors a year (one of the 3 largest shopping center in France) The 10,200 sq.m. extension from subway entrance to the heart of the center will show off high quality architecture for new retail, restaurants and cinema extension Extension should be launched together with a renovation plan 45

46 L ESPLANADE LEADERSHIP CONSOLIDATION (BELGIUM, BRUSSELS REGION) H Located in the heart of Louvain, South of Brussels: most affluent region in Belgium (average annual income 14.5% above national average) Large catchment area of 1.3 million within 30 minutes: high demographic growth (+7.4% forecasted until 2020) Existing site is 54,700 sq.m. GLA. Extension of 20,000 sq.m. and +50 stores will position L Esplanade as the dominant site in South Brussels 46

47 ØKERN SENTERET A UNIQUE RETAIL SCHEME IN OSLO (NORWAY) H A dominant retail hub in one of Oslo s most buoyant new districts (excellent access via public transportation) The center is part of a large mixed-used development with offices, hotel, leisure and residential architecture 55,000 sq.m. regional shopping destination featuring 150 stores 47

48 GRENOBLE GRAND PLACE THE EXTENSION OF A SUCCESSFUL REGIONAL MALL (FRANCE, GRENOBLE) H Grand Place is the dominant regional retail site very well connected by car, 2 tramway stations and bus The 94,000 sq.m. GLA center / 13 M footfall will be extended by 15,000 sq.m. Retail offer consists of 1 major anchor, 1 MSU, 14 shops and 10 restaurants 48

49 DEVELOPMENT PIPELINE Investing in existing platform to capitalize on successes, with ambitious extension-renovations Focus on investments in existing portfolio Pipeline breakdown by status Higher visibility on returns of promising extension projects Committed and controlled pipeline breakdown by type (% value) Committed projects 0.7Bn Average expected Yield 7.1% Controlled projects 1.3Bn New developments 21% Extensions 79% 3.6Bn Others 6% Identified projects 1.6Bn The Netherlands 27% France-Belgium 48% Scandinavia 18% 49

50 OUTLOOK 05 Emporia (Malmö, Sweden) 50

51 2016 GUIDANCE NET CURRENT CASH FLOW PER SHARE per share 51

52 AGENDA April 19, 2016 General meeting of shareholders April 22, 2016 Dividend ex-date April 26, 2016 Dividend payment April 28, st quarter revenues (1) (1) Press release after market close 52

53 APPENDICES Nave de Vero (Venice, Italy) 53

54 DEVELOPMENT PIPELINE Development project Country City Type Klépierre equity interest Estimated cost (1) ( M) Cost to date ( M) Floor area (sq.m.) Expected opening date Centre Bourse (2) France Marseille extension-refurbishment 50.0% ,448 H Val d'europe France Paris region extension 55.0% ,000 H Hoog Catharijne Phase 2 The Netherlands Utrecht extension-refurbishment 100.0% , Other projects (incl. Prado) ,051 TOTAL COMMITTED PROJECTS ,599 Créteil Soleil - Phase 1 France Paris region extension-refurbishment 80.0% ,200 H Bègles Rives d'arcins France Bordeaux extension 52.0% , Grand Portet France Toulouse region extension-refurbishment 83.0% ,000 H Grand Littoral extension France Marseille extension 100.0% ,000 H Grenoble Grand Place France Grenoble extension 100.0% ,600 H Montpellier Odysseum France Montpellier extension 100.0% ,400 H Allum Sweden Allum redevelopment 56.1% ,000 H Gran Reno Italy Bologna extension 100.0% ,900 H L'esplanade Belgium Brussels region extension 100.0% ,650 H Hoog Catharijne Phase 3 The Netherlands Utrecht extension-refurbishment 100.0% ,700 H Vitrolles France Marseille region extension 83.0% , Viva Denmark Odense new development 56.1% ,500 H Givors France Lyon region extension 83.0% ,000 H Arcades France Paris region extension 53.6% ,000 H Økernsenteret (3) Norway Oslo redevelopment 28.1% ,468 H Other projects ,289 TOTAL CONTROLLED PROJECTS 1, ,257 TOTAL IDENTIFIED PROJECTS 1, ,400 TOTAL 3, ,256 (1) Estimated cost price before financial costs. (2) For this project estimated cost and cost to date are reported for Klépierre share of equity. Floor area is the total area of the project. (3) Asset consolidated under equity method. For this project estimated cost and cost to date are reported for Klépierre share of equity. Floor area is the total area of the project. 54

55 2015 OPERATING HIGHLIGHTS RETAILER SALES NET RENTAL INCOME LEASING ACTIVITY Change LfL proforma (1) incl. extensions Change LfL proforma (1) excl. extensions 2015 Current ( M) Change LfL proforma (2) Reversion (%) OCR (%) EPRA Vacancy rate (%) France-Belgium +2.0% +2.0% % 16.2% 12.5% 3.0% France +2.1% +2.1% % 3.1% Belgium +1.7% +1.7% % 0.5% Italy +5.8% +5.3% % 9.5% 11.2% 2.1% Scandinavia +3.0% +2.2% % 5.8% 11.0% 4.5% Norway -0.8% -0.8% % 2.8% Sweden +7.9% +5.7% % 3.7% Denmark +3.7% +3.7% % 8.3% Netherlands N/A N/A % 7.5% NA 3.3% Iberia +7.0% +7.0% % 8.9% 13.7% 6.3% Spain +7.0% +7.0% % 5.3% Portugal +7.1% +7.1% % 9.7% Germany +14.8% +1.4% % 2.7% 12.6% 8.0% CEE and Turkey +7.3% +7.3% % 15.9% 12.6% 5.2% Poland -1.9% -1.9% % 1.8% Hungary +11.5% +11.5% % 8.0% Czech Republic +7.6% +7.6% % 1.1% Turkey +15.3% +15.3% % 8.6% TOTAL SHOPPING CENTERS +4.4% +3.8% 1, % 11.6% 12.0% 3.8% (1) Retailer sales performance for 2015 compared to 2014 assumes that the Corio acquisition occurred on January 1, Like-for-like excludes the impact of asset sales and other acquisitions. Retailer sales from the Dutch portfolio are not included in these numbers as retailers do not report sales to Klépierre. (2) Like-for-like proforma: assumes that the Corio acquisition occurred on January 1, Excludes the impact of other asset sales, acquisitions, extensions and the foreign exchange impacts. 55

56 PROFIT & LOSS ( M) TOTAL SHARE GROUP SHARE M 12/31/ /31/2014 Gross rental income 1, Rental & building expenses NET RENTAL INCOME 1, Management, administrative and related income Other operating revenue Survey & research costs Payroll expenses Other general expenses Depreciations and impairment allowance on investment property Depreciations and impairment allowance on intangible assets and property, plant and equipment Provisions Proceeds of sales Goodwill depreciation OPERATING INCOME ,117.0 Financial income Financial expenses Net cost of debt Change in the fair value of financial instruments Share in earnings of equity method investees PROFIT BEFORE TAXES Corporate income tax NET INCOME /31/ /31/2014 1, Excluding the non-recurring accounting technical impact of the million euro impairment and write-off of Corio s goodwill (please refer to section Scope of consolidation of the business activity report), the consolidated net income group share would have been a profit of million euros. 56

57 CORIO BUSINESS COMBINATION Corio transaction has been treated in consolidated financials statements in accordance with IFRS3 Business combination. The total consideration given is equal to the market value of Klépierre shares issued in exchange of Corio shares (or shares x 1,14 x 37,185 euros). As of December 31, 2015, the group finalized the purchase price accounting. In addition, a part of Corio s goodwill was allocated to the Netherlands sold assets for 110 M and was consequently withdrawn. The residual gross goodwill amount stand at 1,253 M and was impaired by 595 M following impairment test performed at year-end. In millions of euros December 31, 2015 Total consideration A 4,272 Restated Corio Equity B 2,909 Equity Corio as of December 31, ,492 Net Results (January 1st to January 8th January 2015) -31 PPA adjustments -552 Goodwill =A-B 1,363 Goodwill write-off following Netherlands assets sale -110 Goodwill (gross amount) =A-B 1,253 Goodwill impairment -595 Residual Goodwill M impact on P&L Optimization in deferred taxes 265M Corio portfolio value increase 218M 658M Value of management activities 175M 57

58 CASH FLOW STATEMENT ( M) TOTAL SHARE GROUP SHARE 12/31/ /31/ /31/ /31/2014 GROSS RENTAL INCOME 1, , Rental & building expenses NET RENTAL INCOME 1, Management and other income G&A expenses Restatement payroll and deferred expenses Net cost of debt Restatement financial allowance & financial restructuring Share in earnings of equity method investees Current tax expenses Restatement acquisition costs and portfolio restructuring NET CURRENT CASH FLOW Restatement payroll and deferred expenses Restatement amortization allowances and provisions for contingencies and losses Other restatements related to tax EPRA EARNINGS Per share NET CURRENT CASH FLOW PER SHARE EPRA EARNINGS PER SHARE Average number of shares excluding treasury shares 306,803, ,912,339 58

59 VALUATION OF THE PORTFOLIO ( M, TOTAL SHARE, EXCL. DUTIES) 12/31/2015 % of total portfolio 12/31/ month change Current 12-month change Like-for-like (1) France 8, % 6, % +3.7% Belgium % % +15.8% France-Belgium 8, % 6, % +4.2% Italy 3, % 1, % +7.7% Norway 1, % 1, % +9.5% Sweden 1, % 1, % +11.6% Denmark 1, % 1, % +1.6% Scandinavia 3, % 3, % +7.9% Netherlands 1, % % Spain 1, % % +9.4% Portugal % % +4.2% Iberia 1, % % +8.2% Germany 1, % % Poland % % +3.8% Hungary % % -13.7% Czech Republic % % +19.0% Turkey % % CEE and Turkey 1, % 1, % +1.1% Total shopping centers 21, % 13, % +5.3% Other activities % % -1.8% TOTAL 22, % 13, % +5.1% 1. Assuming that the Corio acquisition has occurred on January 1, Excludes the impact of new centers opened, acquisitions, asset sales completed since January 1, 2014, extension capex and foreign exchange impacts. 59

60 VALUATION OF THE PORTFOLIO ( M, GROUP SHARE, EXCL. DUTIES) 12/31/2015 % of total portfolio 12/31/ month change Current 12-month change Like-for-like (1) France 6, % 4, % +3.3% Belgium % % +15.8% France-Belgium 7, % 5, % +3.8% Italy 3, % 1, % +7.7% Norway % % +9.5% Sweden % % +11.6% Denmark % % +1.6% Scandinavia 2, % 1, % +7.9% Netherlands 1, % % Spain 1, % % +9.7% Portugal % % +4.5% Iberia 1, % % +8.4% Germany 1, % % Poland % % +3.8% Hungary % % -13.7% Czech Republic % % +19.0% Turkey % % CEE and Turkey 1, % 1, % +1.1% Total shopping centers 18, % 10, % +5.0% Other activities % % -1.8% TOTAL 18, % 10, % +4.8% 1. Assuming that the Corio acquisition has occurred on January 1, Excludes the impact of new centers opened, acquisitions, asset sales completed since January 1, 2014, extension capex and foreign exchange impacts. 60

61 VALUATION OF THE PORTFOLIO ( M, TOTAL SHARE, INCL. DUTIES) 12/31/2015 % of total portfolio 12/31/2014 France 8, % 6,508 Belgium % 323 France-Belgium 8, % 6,831 Italy 3, % 1,523 Norway 1, % 1,179 Sweden 1, % 1,214 Denmark 1, % 1,020 Scandinavia 3, % 3,413 Netherlands 1, % - Spain 1, % 504 Portugal % 251 Iberia 1, % 755 Germany 1, % - Poland % 434 Hungary % 269 Czech Republic % 358 Turkey % - CEE and Turkey 1, % 1,099 Total shopping centers 22, % 13,621 Other activities % 548 TOTAL 22, % 14,169 61

62 PORTFOLIO VALUATION BRIDGE (GROUP SHARE) 40 bps yield compression over 12 months on overall portfolio Like-for-Like value increase of 4.8% 10 bps change in the net initial yield has a 300M impact on the property value Portfolio valuation bridge 17,902 6, , , % 10,956 12/31/2014 Pro forma Disposals Acquisitions / development like-for-like portfolio 12/31/2015 Exc. Forex Forex 12/31/