2016 H1 EARNINGS - Klépierre€¦ · KLEPIERRE — 2016 H1 EARNINGS — July 26, 2016 DISCLAIMER...

2016 H1 EARNINGS Klépierre, Retail Only® July 26, 2016

KLEPIERRE — 2016 H1 EARNINGS — July 26, 2016

DISCLAIMER

This document was prepared by Klépierre solely for use of presenting the Klépierre 2016 half year earnings published on July 26, 2016.

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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


TABLE OF CONTENTS

2016 H1 HIGHLIGHTS OPERATING PERFORMANCE

FINANCIAL PERFORMANCE

AND PORTFOLIO VALUATION

DEVELOPMENT PIPELINE

OUTLOOK

1 2

3 4

5

3

1

2016 H1 HIGHLIGHTS

Nave de Vero (Venice, Italy)


2016 H1 EARNINGS – A SOLID SET OF OPERATING RESULTS

+2.8% Shopping center net rental income

like-for-like(1) increase,

250 bps outperformance vs. indexation

+2.6% Retailer sales like-for-like(2) increase

260 bps EPRA Cost Ratio(3) reduction

vs. June 30, 2015

(1) Excludes contribution from acquisitions, new centers, extensions, spaces under restructuring and disposals completed since January 2015, and foreign exchange impacts.

(2) Retailer sales performance for 2016 compared to 2015 assumes that the Plenilunio acquisition occurred on January 1, 2015. 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.

(3) EPRA Cost Ratio including vacancy costs stands at 18.1% as of June 30, 2016 vs. 20.7% as of June 30, 2015

+11.2% Average reversion rate on renewals and

relets vs. 10.4% in H1 2015

5


ON TRACK TO OUTPERFORM THE NET CURRENT CASH FLOW FULL-YEAR GUIDANCE

2.2% Net cost of debt, down 30 bps

vs. December 2015

€34.8 EPRA NAV, +8.7% vs. June 30, 2015

EPRA NNNAV of €32.9, +6.7%

NET CURRENT CASH FLOW PER

SHARE 2016 FY UPDATED GUIDANCE

Above initial target of €2.23-€2.25

At least

€2.25

6

€1.16 Net current cash flow per share,

up 8.6% vs. H1 2015

2

OPERATING PERFORMANCE

Centrum Galerie (Dresden, Germany)


ROBUST RETAILER SALES IN PORTFOLIO: UP 2.6%

(1) Retailer sales performance for 2016 compared to 2015 assumes that the Plenilunio acquisitions occurred on January 1, 2015. 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..

(2) In France, the CNCC index was down by 0.3% over the first 5 months.

Retailer sales up 2.4% excluding extensions,

limited impact in H1 2016

2016 H1 like-for-like(1) change in retailer sales

8

+3.1%

SCANDINAVIA

+2.1%

GERMANY

+0.9%

FRANCE

+2.4%

IBERIA

+6.8%

CEE AND TURKEY

+3.1%

ITALY

France: outperforming the domestic

index(2) over 5 months

Strong growth level evidencing enhanced

portfolio quality and a well balanced

geographical footprint


NRI Change

(LfL(1))

H1 2016 vs. H1 2015

Indexation (2)

France-Belgium +2.5% -0.1%

Italy +2.4% +0.2%

Scandinavia +4.0% +1.4%

Iberia +5.1% +0.1%

CEE and Turkey +4.2% +0.7%

Netherlands -6.7% +0.6%

Germany -0.9% 0.0%

SHOPPING CENTERS +2.8% +0.3%

NET RENTAL INCOME UP 2.8% OUTPERFORMING INDEXATION BY 250 bps

% of shopping center net rental income

(1) Excludes contribution from acquisitions, new centers, extensions, spaces under restructuring and disposals completed since January 2015, and foreign exchange impacts.

(2) Average impact of index-linked rental adjustments

Germany

3.8%

Italy

17.6%

Netherlands

4.2%

CEE & Turkey

10.5%

Iberia

9.7%

Scandinavia

17.6%

France-Belgium

36.6%

Solid performance also reflects positive reversion level captured last year

and improvement in occupancy

9

81% of net rental income contributed by France, Italy,

Scandinavia and Iberia


NEW LEASES DELIVERING POSITIVE REVERSION IN ALL REGIONS

Average group reversion(1) of 11.2% (vs. 10.4% in H1 2015)

893 leases signed in H1 2016

Leases renewed or relet, accounting

for €6.6 M worth of additional annual Minimum

Guaranteed Rents, or an 11.2% reversion rate

France-Belgium 12.1%

Italy 13.5%

Scandinavia 9.1%

Iberia 16.0%

CEE and Turkey 9.0%

Netherlands NS

Germany NS

TOTAL 11.2%

(1) Reversion calculated on Minimum Guaranteed Rents for renewed and relet spaces.

Reversion(1) by region

10


(1) Data including former Corio assets. H1 2015 vacancy rate includes Boulevard Berlin and Centrum Galerie, which restructurings have been finalized in H2 2015.

2.3%

1.8%

H1 2015 H1 2016

SOLID OPERATING KEY PERFORMANCE INDICATORS

4.2%

3.8%

H1 2015 H1 2016

EPRA vacancy rate(1) Late payment rate(1)

Very low late payment rate, stabilized

at pre-acquisition of Corio level

11

Group vacancy 40 bps

down vs. last year


KLEPIERRE EUROPEAN PLATFORM HOSTS THE BEST INTERNATIONAL BRANDS

215 STORES

134 STORES

8 STORES

105 STORES

89 STORES

65 STORES

101 STORES

77 STORES

78 STORES

8 STORES 81 STORES

50 STORES

26 STORES 99 STORES

70 STORES

12


AND THEIR EXPANSION ON OUR PLATFORM CONTINUES

Porta di Roma (Italy) Extension of 3,300 sq.m.

Anatolium (Turkey) – 1st store in Bursa

Meridiano (Spain) – 1st store in the Canary Islands

Blagnac (France; 950 sq.m.)

1st Uniqlo store in South-West France

Corvin (Hungary; 1,830 sq.m.)

First Decathlon in a shopping center in Hungary

Principe Pio Porta di Roma

Porta di Roma Espaço Guimarães

13

Massimo Dutti Zara Home

Oysho Stradivarius


Zara

Home

Zara

Oysho Nyx AW Lab

SIGNIFICANT LEASES SIGNED IN MALLS FROM THE EX-CORIO PORTFOLIO

Porta di Roma (Italy)

Nailloux Outlet Village (Toulouse, France)

Espaço Guimarães (Portugal)

Centrum Galerie (Dresden, Germany)

Galeries

Lafayette

Outlet

Pepe

Jeans

Kusmi

Tea

Le Coq

Sportif

L’Oréal

Calze-

donia

Sephora

Stra-

divarius

Tezenis Intimissimi

Vero

Moda

Jack &

Jones

Triumph

14


CAPITALIZING ON GROWTH TRENDS IN THE BEAUTY & HEALTH SEGMENT

Porta di Roma (Italy)

Campania (Italy)

La Romanina (Italy)

Plenilunio (1st in a SC in Spain)

Nový Smìchov (1st in a SC in Czech Rep)

Nový Smìchov (Czech Republic)

Novodvorská Plaza (Czech Republic)

Plzeň Plaza (Czech Republic)

La Gavia (Spain)

Torp (Sweden)

Torp (Sweden)

Maremagnum (Spain)

Parque Nascente (Portugal)

Espaço Guimarães (Portugal) Nový Smìchov (Czech Republic)

15


CONSUMPTION HABITS…. SOCIO DEMO DATA

GEOLOCATION

SOCIAL MEDIA DATA

ATTITUDINAL, SHARE GRAPH …

BEACON DETECTION

PURCHASING AND PAYMENT BEHAVIOURS

WEB & MOBILE MEDIA NAVIGATION

DIGITALIZING OUR ECOSYSTEM

16


KLEPIERRE ID: TESTING AND LEARNING

A CHALLENGE FOR START-UPS

ON 3 DIMENSIONS TO ENRICH OUR DIGITAL

ECOSYSTEM

Data

catching

Phygital

services

Mobile

to store traffic

17

An attractive challenge….More than 40 start-up replies received


KLEPIERRE ID: 3 START-UPS SELECTED

A cloud-based platform

to improve knowledge of

behavior and product

research for customers

connected to our social

networks

Indoor mobile

communication solution

to better track the path

of customers present

in our malls, through

ultrasound technology(1)

(1) Wider coverage than i-beacons and uses the existing infrastructure (audio system or instore radio), no hardware needed

Equip our centers’ applications

with ergonomic and

personalized mapping

Data catching & Mobile to store Phygital services

18

• Optimize social media

engagement

• Generate qualified

drive to store traffic

for retailers

• Local-based interactions:

push targeted offers

and services through

the visitors’ mobile app

• At the right time

and location

• Enrich the customer

experience

• Push content from

retailers that is linked

to or on the customer’s

path


KLEPIERRE ID: NEXT STEPS

Plug and play solutions that will be tested in Klépierre malls

in the next 6 months with the aim of deploying them

if successful

Opportunities for these start-ups to connect

with our retailers

An exclusive and differentiated approach to R&D,

enriched with a premium technology partner

19

Will incubate these start-ups in its “Azure” program

3

FINANCIAL PERFORMANCE & PORTFOLIO VALUATION

Oslo City (Oslo, Norway)


Disposals Acquisition/

Developments

Reversion

& indexation

06/30/2016

Net rental

income current

basis excl. forex

Forex 06/30/2016

Net rental

income

-24.0

+23.1 +12.8 537.3 535.3

-1.8

(€M)

Total share, €M 06/30/2016 06/30/2015

Total gross rents 594.3 603.8

o/w shopping centers 578.5 585.8

Total net rental income 535.3 525.2

o/w shopping centers 520.0 508.0

+2.7%

o/w Dutch portfolio:

-20.8

o/w

Oslo City (Norway): +8.0

Plenilunio (Spain): +5.2

Markthal (Netherlands): +1.5

SHOPPING CENTER NET RENTAL INCOME UP 2.8% LIKE-FOR-LIKE (TOTAL SHARE)

06/30/2015

Net rental

income

525.2

21


Net current cash flow growth driven by:

Net rental income growth

Operating cost synergies from Corio acquisition: Payroll & G&A

Financing synergies

NET CURRENT CASH FLOW PER SHARE UP 8.6%: €1.16 PER SHARE

€M, total share 06/30/2016 06/30/2015 Change

Shopping centers net rental income 520.0 508.0 +2.4%

Total net rental income 535.3 525.2 +1.9%

€M, total share

Operating cash-flow 501.8 484.9 +3.5%

Net current cash flow 427.2 390.0 +9.5%

€M, group share

Net current cash flow 361.6 329.6 +9.7%

Net current cash flow per share (€) 1.16 1.07 +8.6%

Average number of shares excl. treasury shares(1) 311,719,983 308,661,324

(1) Average number of shares, excluding treasury shares. Further to the Corio acquisition, the average number of shares takes into account the creation of 96 589 672 new shares on January 8, 2015, 10 976 874 new shares on

January 15, 2015 and 7 319 177 new shares in March 2015.

22


SIGNIFICANT COST BASE REDUCTION THANKS TO SYNERGIES DELIVERY

(1) Data including former Corio assets since H1 2015.

Payroll and general expenses

(total share) at year-end 2015 included

€15 M of synergies

2016 target: €19 M decrease in payroll

and general expenses which can be split

into: • €13 M of synergies related

to Corio integration

• €6 M others (disposals in the

Netherlands,

Steen & Strøm restructuring…)

= €28 M of Corio cumulated

of G&A synergies over 2 years

EPRA Cost Ratio(1)

18.2%

19.4% 19.5%

20.7% 20.4%

18.1%

16.5%

17.5% 17.7% 18.0% 18.3%

15.9%

FY 2013 H1 2014 FY 2014 H1 2015 FY 2015 H1 2016

Including vacancy costs Excluding vacancy costs

23

CORIO INTEGRATION


CONTINUOUS IMPROVEMENT OF FINANCIAL PROFILE

Net debt of €9,064 M

39.1% LTV

A- (stable) rating

Liquidity remains high: Over €2.3 Bn

Average duration of indebtedness of 5.2 years

Cost of debt at 2.2% (-30 bps vs. YE 2015)

Interest Cover Ratio: 5.1X (+60 bps)

Hedging ratio 78% (duration : 4.6 Y)

Strong discipline to keep LTV below 40% Further reduction in cost of debt

1.96 1.99 1.99

2.07 2.07

2.16

> 2.25 47% 46%

44% 44%

38%

42%

39% 39%

1,9

1,95

2

2,05

2,1

2,15

2,2

2,25

2,3

35%

37%

39%

41%

43%

45%

47%

49%

2010 2011 2012 2013 2014 H1 2015 2015 H1 2016

Net current cash flow per share LTV

Cost of debt & ICR evolution LTV & Net current cash flow evolution

Impact of Plenilunio’s

acquisition

Disposal in Netherlands

3.0X

3.6X

4.5X

5.1X

3.5%

3.0% 2.5%

2.2%

2013 2014 2015 H1 2016

ICR Cost of debt(1)

(1) 2016 Full-year guidance

24


2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

FURTHER COST OF DEBT IMPROVEMENT TO COME FROM ONGOING LOW INTEREST RATE ENVIRONMENT

€220 M

3.1% €291 M

4.625%

€500 M

2.75%

€300 M: 4.625%

€250 M: 5.448%

€750 M

1% €630 M

1.75%

€255 M

2.125%

€500 M

1.875%

Potential for refinancing at a lower cost Recent refinancing transactions

completed

o/w c. €1 Bn H1 2016

Average cost: 1.5%

Average maturity: 8.2 years €615 M

4.0%

- €600 M: 4.75%

- €499 M: 3.25%

Drawn debt maturity schedule

Assuming current market conditions, the cost of debt should decline below 2.0% by 2017, while the duration will be extended

25


Average EPRA Net Initial Yield of the shopping center portfolio (06/30/2016): 5.0%

(-40 bps compression over 12 months)

€M, excluding duties 06/30/2016 06/30/2015 06/30/2016 06/30/2015 D 12-month

like-for-like(1)

France-Belgium 8,558 8,180 7,102 6,842 +3.5%

Italy 3,603 3,504 3,561 3,456 +4.3%

Scandinavia 4,182 3,512 2,346 1,970 +11.1%

Iberia 1,806 1,711 1,767 1,674 +4.4%

CEE & Turkey 1,762 1,675 1,735 1,648 +3.1%

Netherlands 1,181 1,810 1,181 1,810 -1.2%

Germany 1,092 1,082 1,037 1,028 +2.7%

TOTAL SHOPPING CENTERS 22,184 21,474 18,730 18,429 +4.4%

Other activities 431 472 431 472 -0.5%

TOTAL 22,615 21,946 19,101 18,901 +4.2%

of which Equity accounted Investees 1,571 1,515 1,433 1,386

SHOPPING CENTER PORTFOLIO VALUE UP 4.4% OVER 12 MONTHS ON A LIKE-FOR-LIKE BASIS

(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.

GROUP SHARE (2) TOTAL SHARE (2)

26


06/30/2015 Cash-flow Dividend LfL asset revaluation 06/30/2016

12-month change in EPRA NAV per share (in euros per share)

In euros per share 06/30/2015 12/31/2015 06/30/2016 Change (12 months)

EPRA NAV 32.0 34.7 34.8 +8.7%

EPRA NNNAV 30.9 33.2 32.9 +6.7%

32.0

+2.2 +2.3 34.8

311,192,385(1)

EPRA NAV OF €34.8: +€2.8 / +8.7% OVER 12 MONTHS

311,773,309(1)

(1) Number of shares end of period (excl. treasury shares)

-1.7

27

4


Prado project (Marseille, France)


A €3.3 BN PIPELINE FOCUSED ON EXTENSIONS-REFURBISHMENT OF LEADING MALLS

Extensions 86%

New developments 14%

Committed and controlled pipeline

breakdown(1) (% value)

Extension-refurbishments offer the best risk/reward equation for both Klépierre

and retailers

PRIORITY GIVEN TO ENLARGING LEADING REGIONAL

MALLS to generate further growth

(1) Committed and controlled pipeline correspond to 1.8 billion euros of projects.

Major retailers are rightsizing their stores

and concentrating on prime locations

Timing of extension in Klépierre’s hands;

can be coupled with large scale re-tenanting

campaigns

High visibility on future rental income Scandinavia 7%

France-Belgium 48%

The Netherlands 28%

Others 3%

Italy 14%

29


€46 M(1) in full year net rental income expected

KLEPIERRE WILL DELIVER 3 LANDMARK PROJECTS

(1) Total share basis

Hoog Catharijne

(Utrecht, Netherlands) Prado

(Marseille, France)

An iconic and upscale center

in the most affluent district

of France’s third largest city

23,000 sq.m.

53 stores

Anchored by Galeries Lafayette

Val d’Europe

(Paris region, France)

Expanding France’s fastest

growing shopping mall

to welcome international brands

+17,000 sq.m. 100,000 sq.m.

21 new stores and 4 mid-sized

units o/w which Primark

A large redevelopment project

for the country’s

number 1 retail hub

62,000 sq.m. mall on completion

Enhanced connection

with Utrecht Central station

30


VAL D’EUROPE EXTENSION − JULY 2016

Ile-de-France (Paris) European Union

GDP per capita(1) €49,000 €27,500

Population(2) 12.0 M 508.1 M

Demo. growth 2015-2040 +14.5% +3.0%

(1) GDP in PPS. Source: Eurostat, 2014 (2) Source: Eurostat

Estimated cost

€94 M

Opening

H1 2017

Key figures

16.5 million visitors

83,000 sq.m.

before extension

140 shops

31


VAL D’EUROPE EXTENSION − H1 2017

Strong appetite from international retailers willing to join the Val d’Europe success story

75% pre-let rate (Primark, Nike, Rituals, Kusmi Tea, Alice Délice, Lola Jones, Sabon, Havaianas,

What For, Lipault, Pylones…)

17,000 sq.m. extension will be coupled with refurbishment of the existing gallery

32


PRADO NEW SHOPPING CENTER: JULY 2016

Provence-Alpes-Côte d’Azur

(Marseille) European Union

GDP per capita(1) €28,000 €27,500


Demo. growth 2015-2040 +5.8% +3.0%


Estimated cost

€153 M

Opening

H2 2017

Floor area

23,000 sq.m.

33


PRADO: H2 2017

State-of-the art architecture for this mall, which will host an upscale fashion offer

Will be anchored by a Galeries Lafayette department store. Negotiations at an advanced

stage with junior anchors

34

KLEPIERRE — 2016 H1 EARNINGS — July 26, 2016 35

HOOG CATHARIJNE A LARGE REDEVELOPMENT PROJECT

Randstad (Utrecht)

GDP per capita(1) €42,400

Population(2) 8.0 M

Demo. growth 2015-2040 +11.2%

(1) GDP in PPS. Source: Eurostat, 2014 (2) Source: Eurostat. Population figure for Randstad

Estimated cost

€464 M

Opening

2017-2019

Key figures

26 million visitors

62,000 sq.m.

197 shops

08/2016

Parking opening

(1,200 slots)

South Mile opening

Completion of refurbishment

of historic part not involved in phase 2

Q2 Q4 2017 2019

North Mile opening

(phase 2)

View of the City Square on completion


Q4 2017: PHASE 2 (LEVEL 0 + LEVEL 1) OPENING OF NORTH MILE CORRIDOR

Creation of a straight-line corridor

- a powerful connection - between

Utrecht Centraal station and the main

square and Utrecht historic city center

Two-stages openings in 2017:

Q2 : first part (East Catharijnesingel)

Q4: full connection with main gate

to Utrecht Centraal

Existing Hoog Catharijne

to be renovated Route

Work in progress

Historic City Center

2

x

Concert hall

Tivoli Vredenburg

Catharijnesingel

NO

RT

H M

ILE

Utrecht Centraal

Style room

Under

construction

(phase 3)

Phase 2 redevelopment

Already

opened

LEVEL1

Connection to LEVEL 0


NORTH MILE PHASE 2 LEVEL 1 (CURRENT STATUS)

Leasing status: strong retailer appetite with 15% of projected rents signed

and 45% under advanced negotiations for phase 2

Current status: the North Mile with Style Room on the left


Catharijnesingel

Historic City Center

Concert hall

Tivoli Vredenburg 2x

Utrecht Centraal

City square

SO

UT

H M

ILE

38

Q1 2019 PHASE 3: OPENING OF SOUTH MILE

Existing Hoog Catharijne

New spaces created

Route

Phase 3 development

Double straight-line connection

between Utrecht Centraal

and Utrecht historic city center

NO

RT

H M

ILE

Already

opened

Refurbishment of existing stores

LEVEL1

Style room

Connection to LEVEL 0


CRETEIL SOLEIL (PARIS REGION): EXTENSION OF MAIN GATE CONNECTING TO METRO

Ile-de-France (Paris) European Union

GDP per capita(1) €49,000 €27,500


Demo. growth 2015-2040 +14.5% +3.0%


Strengthen the main entrance

of the shopping mall that welcomes

close to 1/3 of shoppers

Estimated cost

€64 M

Opening

H2 2018

39

Key figures


123,500 sq.m.

221 shops


CRETEIL SOLEIL: BUILDING ON THE SUCCESS OF A LEADING MALL IN GRAND PARIS

2 floors extension

Will enhance the connection with metro line 8, linking the mall with Paris city center

(5 million passengers used Créteil Préfecture metro station in 2015(1))

Will connect cinemas to a renovated and upgraded food court

Shopping center today

Extension project

Créteil Soleil

13,450 sq.m. extension project €64 M investment planned / Refurbishment project to be launched

(1) Source: RATP

40

City Hall

Museum of Arts

Prefecture

Cinema

MAIN

GATE (23)


Estimated cost

€131 M

Opening

H2 2020

Key figures


55,800 sq.m.

132 shops

L’ESPLANADE: EXTENSION OF THE LEADING MALL IN SOUTHERN BRUSSELS

Addition of 50 stores and restaurants

+ 4 mid-sized units over 19,500 sq.m.

Walloon Brabant (Brussels) European Union

GDP per capita(1) €35,300 €27,500


Demo. growth 2015-2040 +21.7% +3.0%


41


OKERNSENTERET: A 55,000 SQ.M. REGIONAL SHOPPING DESTINATION (150 STORES) FOR OSLO

Part of a 163,000 sq.m. urban development

area including residential, office, hotel

and leisure schemes

Oslo European Union

GDP per capita(2) €51,800 €27,500


Demo. growth 2015-2040 +55.8% +3.0%

(1) Klépierre share (28.1%; 91 €M) (2) GDP in PPS. Source: Eurostat, 2013 (3) Source: Eurostat

Estimated cost

€326 M(1)

Opening

H2 2020

42


Estimated cost

€39 M

Opening

H1 2019

Key figures

13 million visitors

94,000 sq.m.

130 shops

GRAND PLACE EXTENSION: THE TOP RETAIL SPOT FOR GRENOBLE REGION

Clubstore® implementation

Addition of large units and junior anchors

over 15,600 sq.m.

Rhône-Alpes (Lyon) European Union

GDP per capita(1) €29,100 €27,500


Demo. growth 2015-2040 +20.9% +3.0%


43


TWO LARGE PROJECTS FOR TWO LEADING CENTERS IN ITALY

LE GRU (TURIN) Piedmont’s leading mall

+12,000 sq.m. Extension-refurbishment of the 1st floor

€80 M investment planned

Completion: 2020-2022

PORTA DI ROMA (ROME) Italy’s #1 shopping center +12,000 sq.m.

Food court enlargement and retail extension

€90 M investment planned

Completion: 2020-2022

Key figures


92,400 sq.m.

240 shops

Key figures


78,500 sq.m.

156 shops

44

5

OUTLOOK

Val d’Europe (Paris region, France)


€19 M FY decrease

in payroll and G&A

Operations

3 PILLARS BOOSTING CASH FLOW GROWTH

Inflation

On renewal and relet

Consumption trend

Capital allocation

Economic environment in H1 2016

Interest rates

Disposals

Development pipeline

KLÉPIERRE CASH FLOW

GROWTH H1 2016 Reversion: +11.2%

H1 2016 NRI growth: +2.8%

(1) Shopping centers

46

€156 M

€3.3 Bn

+0.3% indexation 2.2% cost of debt +2.6% retailer sales

Like-for-Like growth(1)

Cost base reduction


1.96 1.99 1.99

2.07

47.2%

45.8%

43.6% 43.6%

37.6%

39.2%

2010 2011 2012 2013 2014 2015 2016

FY 2016 GUIDANCE REVISED UPWARD

Net current cash flow per share (€) LTV

LTV at current

level or below

At least

2.25

2.07

2.16

New guidance 2016 NCCF per share: at least €2.25

above €2.23-2.25 initial range

47

e


AGENDA

October 26, 2016 2016 3rd quarter revenues(1)

(1) Press release after market close

48

APPENDICES

Plenilunio (Madrid, Spain)



Development project Country City Type Klépierre

equity interest

Estimated

cost(1) (€M)

Cost to date

(€M)

Floor area

(sq.m.)

Expected

opening date

Val d'Europe France Paris region extension 55,0% 94 68 17 000 H1 2017

Hoog Catharijne Phases 2 & 3 The Netherlands Utrecht extension-refurbishment 100,0% 464 178 61 982 2017-2019

Other projects (incl. Prado) 194 83 35 621

TOTAL COMMITTED PROJECTS 752 330 114,603

Créteil Soleil - Phase 1 France Paris region extension-refurbishment 80,0% 64 3 13 450 H2 2018

Bègles Rives d'Arcins France Bordeaux extension 52,0% 37 5 25 080 H2 2017-H2

2020

Grand Portet France Toulouse region extension-refurbishment 83,0% 65 8 8 000 H2 2021

Grand Littoral France Marseille extension 100,0% 30 - 12 000 H1 2019

Grenoble Grand Place France Grenoble extension 100,0% 39 - 15 630 H1 2019

Odysseum France Montpellier extension 100,0% 27 - 9 140 H2 2019

Gran Reno Italy Bologna extension 100,0% 121 1 15 900 H1 2020

L'esplanade Belgium Brussels region extension 100,0% 131 16 19 475 H2 2020

Vitrolles France Marseille region extension 83,0% 80 - 18 050 H2 2019

Val d'Europe France Paris region extension 55,0% 51 - 10 620 H2 2020

Lonato(2) Italy Lombardy extension 50,0% 30 - 15 000 H2 2020

Le Gru Italy Turin extension 100,0% 80 - 12 000 H2 2021

Maremagnum Spain Barcelona extension 100,0% 45 - 8 000 H2 2020

Økernsenteret(2) Norway Oslo redevelopment 28,1% 91 5 53 220 H2 2020

Other projects 5 - 2 520

TOTAL CONTROLLED PROJECTS 897 37 238,085

TOTAL IDENTIFIED PROJECTS 1,690 44 308,660

TOTAL 3,339 411 661,348

(1) Estimated cost price before financial costs.

(2) 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.

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RETAILER SALES NET RENTAL INCOME LEASING ACTIVITY

Change LfL (1) Change LfL (1)

excl. extensions

H1 2016

Current (€M) Change LfL (2) Reversion

(%) OCR (%)

EPRA Vacancy rate (%)

France-Belgium 0,8% 0,8% 190,2 +2,5% 12,1% 12,4% 3,3%

France 0,9% 0,9% 182,9 +2,3% 3,4%

Belgium -0,1% -0,1% 7,3 +8,0% 0,9%

Italy 3,1% 3,1% 91,6 +2,4% 13,5% 11,1% 1,6%

Scandinavia 3,1% 2,8% 91,3 +4,0% 9,1% 11,6% 4,5%

Norway 2,0% 2,0% 32,2 +1,9% 3,8%

Sweden 4,0% 3,1% 31,5 +4,8% 4,1%

Denmark 4,2% 4,2% 27,5 +5,3% 6,2%

Netherlands NA NA 22,0 -6,7% NS NA 6,7%

Iberia 2,4% 2,4% 50,2 +5,1% 16,0% 13,8% 6,2%

Spain 2,0% 1,9% 40,5 +5,0% 4,9%

Portugal 3,7% 3,7% 9,7 +5,5% 10,0%

Germany 2,1% -0,2% 20,0 -0,9% NS 12,5% 6,4%

CEE and Turkey 6,8% 6,8% 54,7 +4,2% 9,0% 12,1% 5,1%

Poland 2,8% 2,8% 15,9 +2,1% 1,7%

Hungary 11,1% 11,1% 9,4 +10.6% 6,6%

Czech Republic 6,6% 6,6% 12,9 +8,5% 0,9%

Turkey 10,7% 10,7% 15,1 -4,1% 7,5%

TOTAL SHOPPING CENTERS 2,6% 2,4% 520,0 +2,8% 11,2% 12,0% 3,8%

(1) Retailer sales performance for 2016 compared to 2015 assumes that the Plenilunio acquisition occurred on January 1, 2015. 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.

2016 H1 OPERATING HIGHLIGHTS

51


PROFIT & LOSS (€M) TOTAL SHARE

€M 06/30/2016 06/30/2015

Gross rental income 603.9 609.2

Rental & building expenses -68.6 -84.1

NET RENTAL INCOME 535.3 525.2

Management, administrative and related income 43.8 45.2

Other operating revenue 6.1 8.8

Survey & research costs -0.2 -0.8

Payroll expenses -66.2 -83.6

Other general expenses -29.7 -38.8

EBITDA 489.1 456,0

Depreciations and impairment allowance on investment property -266.9 -234.4

Provisions 1.6 0.6

Proceeds of sales 7.3 1.2

OPERATING INCOME 231.2 223.4

Financial income 61.6 81.4

Financial expenses -146.1 -193.3

Net cost of debt -84.5 -111.9

Change in the fair value of financial instruments -7.0 -3.6

Share in earnings of equity method investees 8.8 3.5

PROFIT BEFORE TAXES 148.5 111.4

Corporate income tax -26.9 -19.9

NET INCOME 121.6 91.5

GROUP SHARE

06/30/2016 06/30/2015

519.9 521.1

-60.1 -72.4

459.8 448.7

41.4 41.3

5.2 7.4

-0.2 -0.8

-62.6 -76.6

-28.0 -36.1

415.6 383,9

-228.8 -204.9

1.6 0.9

7.3 2.4

195.8 182.3

57.9 78.4

-132.8 -180.2

-74.9 -101.8

-7.0 -3.5

5.9 1.5

119.8 78.5

-21.9 -15.9

97.9 62.6

52


CASH FLOW STATEMENT (€M)

53

TOTAL SHARE GROUP SHARE

06/30/2016 06/30/2015 06/30/2016 06/30/2015

GROSS RENTAL INCOME 603.9 609.2 519.9 521.1

Rental & building expenses -68.6 -84.1 -60.1 -72.4

NET RENTAL INCOME 535.3 525.2 459.8 448.7

Management and other income 49.9 53.9 46.6 48.7

G&A expenses -96.1 -123.1 -90.8 -113.5

Restatement payroll and deferred expenses 5.7 17.0 5.5 16.6

Restatement IFRIC 21 H2 impact 7.0 9.5 7.0 9.5

Restatement acquisition costs and portfolio restructuring - 2.3 - 2.3

Net cost of debt -84.5 -111.9 -74.9 -101.8

Restatement financial allowance & financial restructuring -7.6 3.7 -7.6 7.0

Share in earnings of equity method investees 31.3 26.9 28.4 23.7

Current tax expenses -13.8 -13.4 -12.3 -11.7

NET CURRENT CASH FLOW 427.2 390.2 361.6 329.6

Restatement payroll and deferred expenses -5.5 -4.4

Restatement amortization allowances and provisions for contingencies and losses -5.0 -6.5

EPRA EARNINGS 351.2 318.7

Per share

NET CURRENT CASH FLOW PER SHARE 1.16 1.07

EPRA EARNINGS PER SHARE 1.13 1.03

Average number of shares excluding treasury shares 311.719.983 308.661.324


VALUATION OF THE PORTFOLIO (€M, TOTAL SHARE, EXCL. DUTIES)

06/30/2016 % of total portfolio 06/30/2015 12-month change

Current 12-month change

Like-for-like(1)

France 8 181 36,2% 7 814 4,7% 4,0%

Belgium 377 1,7% 366 2,9% 3,2%

France-Belgium 8 558 37,8% 8 180 4,6% 4,0%

Italy 3 603 15,9% 3 504 2,8% 4,2%

Norway 1 650 7,3% 1 209 36,5% 10,5%

Sweden 1 430 6,3% 1 279 11,8% 15,0%

Denmark 1 103 4,9% 1 024 7,7% 7,0%

Scandinavia 4 183 18,5% 3 512 19,1% 11,1%

Spain 1 470 6,5% 1 400 5,0% 3,4%

Portugal 336 1,5% 311 8,1% 8,2%

Iberia 1 806 8,0% 1 711 5,6% 4,5%

Poland 437 1,9% 428 2,2% 4,4%

Hungary 222 1,0% 227 -1,9% 2,2%

Czech Republic 463 2,0% 388 19,5% 19,4%

Turkey 603 2,7% 584 3,1% -7,5%

CEE & Turkey 1 762 7,8% 1 675 5,1% 3,0%

Netherlands 1 181 5,2% 1 810 -34,8% -1,2%

Germany 1 092 4,8% 1 082 1,0% 2,7%

TOTAL SHOPPING CENTERS 22 184 98,1% 21 474 3,3% 4,9%

Other activities 431 1,9% 472 -8,6% -0,5%

TOTAL 22 615 100,0% 21 946 3,1% 4,8%

1. Excludes the impact of new centers opened, acquisitions, asset sales completed since July 1, 2015, extension capex and foreign exchange impacts.

54


VALUATION OF THE PORTFOLIO (€M, GROUP SHARE, EXCL. DUTIES)

06/30/2016 % of total portfolio 06/30/2015 12-month change

Current 12-month change

Like-for-like(1)

France 6 725 35,1% 6 476 3,8% 3,5%

Belgium 377 2,0% 366 2,9% 3,2%

France-Belgium 7 102 37,1% 6 842 3,8% 3,5%

Italy 3 561 18,6% 3 456 3,0% 4,3%

Norway 925 4,8% 678 36,5% 10,5%

Sweden 802 4,2% 717 11,8% 15,0%

Denmark 619 3,2% 575 7,7% 7,0%

Scandinavia 2 346 12,2% 1 970 19,1% 11,1%

Spain 1 431 7,5% 1 363 5,0% 3,3%

Portugal 336 1,8% 311 8,1% 8,2%

Iberia 1 767 9,2% 1 674 5,6% 4,4%

Poland 437 2,3% 428 2,2% 4,4%

Hungary 222 1,2% 227 -1,9% 2,2%

Czech Republic 463 2,4% 388 19,5% 19,4%

Turkey 579 3,0% 561 3,2% -7,8%

CEE & Turkey 1 735 9,1% 1 648 5,2% 3,1%

Netherlands 1 181 6,2% 1 810 -34,8% -1,2%

Germany 1 037 5,4% 1 028 1,0% 2,7%

TOTAL SHOPPING CENTERS 18 730 97,7% 18 429 1,6% 4,4%

Other activities 431 2,3% 472 -8,6% -0,5%

TOTAL 19 161 100,0% 18 901 1,4% 4,2%

1. Excludes the impact of new centers opened, acquisitions, asset sales completed since July 1, 2015 extension capex and foreign exchange impacts.

55


€M, excluding duties 06/30/2016 12/31/2015 06/30/2016 12/31/2015 D 6-month

like-for-like(1)

France-Belgium 8,558 8,403 7,102 7,002 +1.7%

Italy 3,603 3,606 3,561 3,560 +1.3%

Scandinavia 4,183 3,955 2,346 2,219 +5.7%

Iberia 1,806 1,785 1,767 1,747 +1.3%

CEE & Turkey 1,762 1,736 1,735 1,708 +1.5%

Netherlands 1,181 1,139 1,181 1,139 -1.7%

Germany 1,092 1,068 1,037 1,014 +2.9%

TOTAL SHOPPING CENTERS 22,184 21,693 18,730 18,390 +2.0%

Other activities 431 434 431 434 -0.5%

TOTAL 22,615 22,127 19,161 18,824 +1.9%

of which Equity accounted Investees 1,571 1,858 1,433 1,590

SHOPPING CENTER PORTFOLIO VALUE UP 2.0% OVER 6 MONTHS ON A LIKE-FOR-LIKE BASIS

(1) Excludes the impact of new centers opened, acquisitions, asset sales completed since July 1, 2015, extension capex and foreign exchange impacts.

(2) Excluding duties, including development and shopping centers accounted under equity accounted investees.

GROUP SHARE (2) TOTAL SHARE (2)

56


SHOPPING CENTER VALUATION (GROUP SHARE – EXCLUDING DUTIES – IN €M)

57

06/30/2015 Disposals

Acquisitions /

Developments

Like-for-Like

Portfolio

06/30/2016

excl. forex Forex 06/30/2016

18,429

-792

+464

+711 18,779

18,730

-49

+4.4%

LFL

Duties

-33


VALUATION OF THE PORTFOLIO (€M, TOTAL SHARE, INCL. DUTIES)

06/30/2015 % of total portfolio 06/30/2015

France 8 554 36,9% 8 155

Belgium 377 1,6% 366

France-Belgium 8 931 38,6% 8 521

Italy 3 670 15,9% 3 512

Norway 1 650 7,1% 1 209

Sweden 1 430 6,2% 1 279

Denmark 1 103 4,8% 1 024

Scandinavia 4 183 18,1% 3 512

Spain 1 491 6,4% 1 407

Portugal 336 1,5% 311

Iberia 1 827 7,9% 1 718

Poland 438 1,9% 428

Hungary 226 1,0% 230

Czech Republic 463 2,0% 388

Turkey 615 2,7% 584

CEE & Turkey 1 778 7,7% 1 679

Netherlands 1 211 5,2% 1 919

Germany 1 092 4,7% 1 082

TOTAL SHOPPING CENTERS 22 693 98,0% 21 943

Other activities 460 2,0% 504

TOTAL 23 153 100,0% 22 447

58

THANK YOU

Emporia (Malmö, Sweden)

Klépierre, Retail Only®

2016 H1 EARNINGS - Klépierre€¦ · KLEPIERRE — 2016 H1 EARNINGS — July 26, 2016 DISCLAIMER...

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