2017 Half-year results 26 July 2017

Agenda

01 H1 highlights David Atkins – CEO

02 Financial results Richard Shaw – Group Financial Controller

03 Portfolio review Mark Bourgeois – Managing Director UK and Ireland David Atkins – CEO

04 Conclusion David Atkins – CEO

2

2017 Half-year highlights

3

Consistent sector-leading income growth

EPS +5.6%

DPS +5.9%

Polarisation driving demand for space

Leasing volumes +44%

LfL NRI +3.4% (1)

Positive capital returns across all parts of portfolio

NAVPS +4.3%

Higher growth markets continue to outperform

Ireland ERV growth 2.5%

Premium outlets sales growth +11%

Advancing future developments

Brent Cross detailed planning submitted

Cergy main contractor selected

Pioneering sustainability commitment

‘Net Positive’ by 2030

(1) LfL NRI including Ireland and premium outlets. EPRA LFL NRI +0.7%

Garden of Pure Imagination, Dundrum

Batavia Stad, Amsterdam

H1 highlights

Brent Cross extension

Cabot Circus

Retail park image

Victoria, Leeds

Our strategy underpins the strong financial performance

4

Dundrum, Dublin Westquay, Southampton Mallorca Fashion Outlet

Focus on growing consumer markets

Create differentiated destinations

Promote financial efficiency and partnerships

H1 highlights

5 (1) Including disposal of Westwood and Westwood Gateway retail parks, Thanet, £80m (2) As at 30 June 2017 (excludes Norwegian Outlet, Oslo acquisition and disposals in Thanet in July)

Hammerson portfolio split (2)

Our well-positioned European portfolio

Positive valuations across all parts of the portfolio

Benefiting from structural trends in retail, despite variability of consumer environment

Solid investment market demand for prime assets underpins yields

Income growth contributed over 80% of capital returns

Outperformance from higher-growth markets

Irish economic data strong, driven by fundamentals

European premium outlets valuations driven by structural trends of tourism and market consolidation

Disposals on track

£97m (1) achieved to date and total £400m planned this year

UK shopping centres £3.5bn

France £2.2bn

Ireland £0.8bn

UK retail parks £1.3bn

Premium outlets £2.0bn

Development & UK other £0.6bn

H1 highlights

33%

21% 8%

13%

19%

6%

£10.5 billion portfolio

UK 57% Non-UK 43%

Achieving record leasing volumes as retailers increasingly focus on the best locations

6

Leasing volumes across investment portfolio (£m)

0

1

2

3

4

5

6

7

UK ShoppingCentres

UK Retail Parks France Ireland

2016 H1 2016 H2 2017 H1

H1 highlights

n/a

Coach, Victoria Leeds Bullring, Birmingham

Confidence in our income-focused growth track-record

7 (1) H1 2011 to H1 2017 (2) FY 2011 – H1 2017

NAVPS (pence)

400

450

500

550

600

650

700

750

800

2011 2012 2013 2014 2015 2016 H117

CAGR +7.1% (2)

EPS (pence) DPS (pence)

0

5

10

15

20

25

30

2011 2012 2013 2014 2015 2016 2017

H1 H2

CAGR +7.8% (1)

0

5

10

15

20

25

30

2011 2012 2013 2014 2015 2016 2016

H1 H2

CAGR +6.6% (1)

H1 highlights

15.1

10.7

771

02 Financial results

Richard Shaw – Group Financial Controller

- Review of 2017 performance - Analysis of valuation trends - Update on financing ratios - Capital recycling - Drivers of future earnings growth

Headline results

9 (1) Valuation for total portfolio including premium outlets

Income statement 30 June 2017 30 June 2016 Change

Net rental income (£m) 184.0 167.7 +9.7%

Adjusted profit (£m) 119.4 112.6 +6.0%

Adjusted EPS (p) 15.1 14.3 +5.6%

Interim dividend (p) 10.7 10.1 +5.9%

Balance sheet 30 June 2017 31 December 2016 Change

Portfolio value (£m) (1) 10,527 9,971 +5.6%

EPRA NAVPS (p) 771 739 +4.3%

LTV (%) 37 36 +1 p.p.

Financial results

LfL NRI growth lifted by Ireland and premium outlets

10 (1) Figures on a proportionally consolidated basis (2) Adversely impacted by surrender premiums. Adjusted H1 2017 LfL NRI growth +4.7% (3) Ireland will become EPRA LfL from 2018. Proforma LfL NRI including Ireland +1.6%

H1 2017 NRI by sector (1)

NRI (£m) LfL NRI growth (%)

UK shopping centres

76.7 +2.1

UK retail parks (2)

35.2 −3.0

France 47.5 +1.5

EPRA NRI

159.4 +0.7

Ireland (3)

16.0 +12.0

Premium outlets

42.9 +11.7

UK other and developments 8.6 n/a

Total NRI

226.9 +3.4

Financial results

Solid uplift in profit

11 (1) Net of interest received in H1 2016

112.6

119.4

7.0 1.0

2.7

3.7 0.5

3.5 (9.8)

(1.8)

100

105

110

115

120

125

130

135

H1 2016 H1 2017

H1 2017 adjusted profit movement (£m)

Acquisitions (Ireland) (1)

Developments Premium outlets

Net admin FX & other Financing

+6.0%

Financial results

LFL NRI Disposals

Income growth driving valuation

12 (1) At constant exchange rates (2) Figures on a proportionally consolidated basis (3) Principally assets held for redevelopment and non-core (4) Excluding Pavilions residual loan £111m

Financial results

H1 2017 capital return (1)

Drivers of underlying valuation change Value at 30 June 2017 (2)

(%) Yield shift (%) Income (%) Other (%) (£m)

UK shopping centres +0.9 +0.3 +0.6 - 3,484

UK retail parks +1.3 −0.1 +0.4 +0.9 1,340

UK other interests (3) +1.9 −0.9 +0.3 +2.5 169

France +0.0 +0.1 +0.1 −0.2 2,232

Ireland (4) +2.5 - +2.5 - 850

Developments +0.6 - +0.2 +0.4 420

Premium outlets +6.0 +0.6 +5.7 −0.2 2,032

Total +1.8 +0.2 +1.5 +0.1 10,527

Positive valuations driving NAVPS uplift

13

739

771 24

15

7 (14)

715

725

735

745

755

765

775

785

795

Dec 2016 June 2017

H1 2017 EPRA NAV movement (pence per share)

Portfolio revaluation incl. premium outlets

Adjusted profit

Dividends FX & other

+4.3%

Financial results

Financing ratios underpin our balance sheet strength

14

Financing policy 30 June 2017 31 Dec 2016

Net debt - £3,710m £3,413m

Gearing <85% 62% 59%

Loan to value <40% 37% 36%

Cash and undrawn facilities - £678m £592m

Weighted average cost of debt - 3.0% 3.1%

Interest cover >2.0x 3.4x 3.5x

Net debt/EBITDA <10x 10.1x 9.5x

Fixed rate debt >50% 76% 70%

GBP/EUR FX balance sheet hedging 70% - 90% 80% 79%

Financial results

15

0

200

400

600

800

1000

1200

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Revolving credit facilities

Private placement

Sterling bonds

Euro bonds

Secured debt

Debt maturity profile 30 June 2017 (£m)

Financial results

Continuing to take advantage of refinancing opportunities

Medium term opportunities to refinance upcoming maturities

• 2019: €500m 2.75% bonds

• 2020: £250m 6.875% bonds

Capital recycling and funding flexibility

16

Deleverage through disposals ahead of large developments (£m)

0

100

200

300

400

500

600

700

800

2011 - 2016 2017 disposals Average annual capex 2017-2021

Shopping centres Retail parks France Other, including offices

2011 – 2016 average disposals p.a.

Continue run-rate of annual disposals

Pipeline of extensions and phased capex for large developments

Financial results

£345m

£400m

£300m

Confidence in medium-term EPS growth

17 (1) CAGR 8.6%

Movement in adjusted EPS 2011-2016 (pence per share)

29.2

19.3

(0.6)

(0.3)

(0.2)

3.8

3.5

3.7

17 19 21 23 25 27 29 31

Drivers / outlook

At least 2% p.a. target. Enhanced quality of portfolio

Retail parks 8% YoC Near-term projects c.6% YoC

Strong market sales growth (c.10% p.a.)

Further deleveraging and refinancing in low interest rate environment

Disposals £400m, ahead of future developments

50% growth in 5 years

8.6% p.a. growth

Financial results

LfL NRI

2011

Developments

Premium outlets

Acquisitions and disposals

Net interest

Dublin loan interest, share issue & other

2016 50% growth (1)

Drivers/outlook

03 Portfolio review

Mark Bourgeois - MD UK & Ireland - First impressions - UK shopping centres - UK retail parks - Ireland

David Atkins - CEO - France - Premium outlets

Portfolio review:

UK shopping centres

Cabot Circus, Bristol

20

Portfolio quality

First thoughts upon joining Hammerson

Product experience framework

Iconic destinations

Best at retail

Convenient & easy

Interactive & engaging

Entertaining & exciting

Positive Places

Hammerson 75?

Portfolio review

Culture

Creating differentiated destinations

Wimbledon tennis at the Esplanade, Westquay

Issho, Victoria Leeds

LinkStreet, Birmingham

Garden of Pure Imagination, Dundrum Volkswagen, Bullring

Light show at the Esplanade, Westquay

Beach, Brent Cross

Beacons, Highcross

21 Style Seeker, Plus app

Role of the store continues to evolve

22 (1) Javelin survey of 50 retailers carried out for Hammerson

“What will the primary role of your store be in 5 years?”(1)

In-centre sales

1 2 3

2. Retail halo +5%

3. Collection kiosks +1-2%

1. Instore multichannel +10%

Productivity of the centre extends by a further 17%

“What are your investment priorities?” (1)

88%

improving customer experience through in-store technology

Selling merchandise

Provide service and experience

Showcase the brand

Portfolio review

75%

-3.1% Hammerson France sales

-3.9% Hammerson UK sales

Volkswagen, Bullring

Our differentiated destinations attract strong leasing demand in spite of challenging retail conditions

23 (1) Change in volume of new leasing (£m) H1 17 vs. H1 16

UK shopping centres H1 2017

In-store retail sales (%) −3.9

Leasing activity (%) (1) +47

Leasing vs. ERV (%) +5

ERV growth (%) +0.5

LfL NRI (%) +2.1

Average H1 2017 leasing package 9 months (H1 2016: 9 months)

*

* Portfolio firsts

*

*

*

Portfolio review

*

* * *

Coach, Victoria Leeds

Our dining destinations are performing well with robust leasing demand

15% of portfolio allocated to dining and leisure

Right concept in the right location will thrive

Brands with strong offer, innovative design,

strong financial models and good customer

service will win out

Bespoke leasing approach

Introducing new concepts:

24 (1) 12 month rolling LFL to 30 June 2017

Selected statistics: D&D takings on first weekend? VR footfall? Westquay – footfall across rest of centre? Leasing deals signed with X Y Z since opening westquay south? Oracle – footfall? Silverburn restaurant extension – Footfall up 5% from 17.3m to 18.1m; dwell time up 21 mins after one year

Script notes Growth is slowing, coming off a high base, but still positive for those brands which have kept their offer relevant, priced appropriately and positioned their stores well

Largest 3 restaurant operators (by sales), Hammerson portfolio LfL sales growth (1)

+2.7%

+1.2%

+7.5%

F&B expertise boosting asset performance

Portfolio review

*Oracle – riverside dining

Quakers Friars, Cabot Circus

Riverside, Oracle

Westquay South

Issho, Victoria Leeds

Victoria Leeds

Opportunity to further enhance the UK portfolio with next generation of retail

25

Croydon

(1) Hammerson share

200,000m2 Croydon Partnership retail

Cost to complete (1)

£650-700m

Brent Cross

175,000m2 Total retail space

Cost to complete (1)

£475-550m

Portfolio review

Planning May 2017: submitted detailed planning consent Autumn 2017: committee for approval

Contractors Autumn: appoint shopping centre works contractor. By end of year: appoint highways contractor; secure cost certainty

Regulatory approvals By end of 2017: CPO consent

Leasing Finalise agreements with department stores Good initial interest from international MSU retailers

Current strong demand for new space within existing scheme

Advancing transformational development of Brent Cross towards 2018 start on site

26 Portfolio review

Steps towards start on site

Portfolio review:

UK retail parks

Elliott’s Field, Rugby

Profitable retail park extensions adding new income

28

Total yield on cost

8%

Total investment

£98m

Good leasing demand for well-located schemes

Build on success of Phase 1

Strong leasing demand

Profit on cost 29%

Portfolio review

Elliott’s Field Phase 2, Rugby 78% pre-let

Orchard Centre, Didcot 45% pre-let

Fife Central, Kirkcaldy Completed 100% pre-let

Parc Tawe, Swansea 76% pre-let

Record-high occupancy across retail parks

29 (1) Change in volume of new leasing (£m) H1 17 vs. H1 16 (2) Net surrender premiums of £2.7m received in H1 2016 (3) Source: CACI data versus 2015 survey

Enhancing our well-positioned retail parks with retail know-how

Dunelm “holding our superstore footprint at 159 stores” DixonsCarphone “Major roll out of fully refurbished 3-in1 store concept in the UK & Ireland” Topps Tiles “Now trading 367 stores…ending the year with approximately 370 stores” B&Q “Store closure programme complete” Stabilise portfolio at 295 B&Q UK & Ireland. Opened 60 Srewfit, target 700. [SCS / TAPI]

Importance of nationwide store portfolios to homeware retailers

99% H1 17 Occupancy

+1.2% YTD Footfall

+9% Dwell time (3)

(2017: 51 mins)

+32% Click & Collect users (3)

(2017: average C+C spend £88.75)

x2 Net promoter score (3)

(2017: 31%)

Portfolio review

Fife Central, Kirkcaldy

UK retail parks H1 2017

Leasing activity (%) (1) +56

Leasing vs. ERV (%) +11

ERV growth (%) +0.3

LfL NRI (%) −3.0

LfL NRI (adj for surrender premiums) (%)(2) +4.7

Portfolio review:

Ireland

Dundrum, Dublin

Delivering strong ERV growth and enhancing the consumer experience

31 (1) Proforma based on underlying net rental income in H1 2016 which was accounted for as finance income (2) Dundrum ERV 100%

Uplift in Dundrum ERV since ownership (2)

Portfolio review

€65m

73.7

€90m+

€8m

Acquisition ERVJuly 2016

Uplift at June2017

Expectedgrowth H22017-2021

Forecast 2021ERV

+12%

Ireland H1 2017

Leasing vs. ERV (%) +13

ERV growth (%) +2.5

LfL NRI (%) (1) +12.0

Creative asset management at Dundrum

Garden of Pure Imagination Smiggle

POCO

Nespresso

Volvo

99.9% Occupancy

POCO

Positive activity across the rest of the Irish portfolio

32

Developments

Full control secured of Dublin Central Development site

Master planning commenced at Dundrum Phase 2

Portfolio integration

New Dublin Hammerson HQ

Fully integrated with UK leasing team

Pavilions, Swords

Completion of ownership arrangements later this year

Trading positively; leading centre in catchment

Ilac Centre

Ilac Centre, Dublin centre

Moore Mall refurbishment completed

10 units to 5 larger units (100% pre-let)

Cost €1.5m; >2x rent uplift

Portfolio review

Les Terrasses du Port, Marseille

Portfolio review:

France

A core asset strategy in France

34

Focus on attractive and resilient prime centres

Les Terrasses du Port Marseille

Les Trois Fontaines Cergy Pontoise, Paris

Italie Deux Paris

70%

Mention Italie 2 cinema in the script

Portfolio review

£1,560m

Les Terrasses du Port

Italie Deux

Les Trois Fontaines

Regional

Other £660m

Good leasing in France with improving economic backdrop

35 (1) Change in volume of new leasing (£m) H1 17 vs. H1 16

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2012 2013 2014 2015 2016 Q1 2017

France H1 2017

In-store retail sales (%) −3.1

Leasing activity (%) (1) +12

Leasing vs. ERV (%) +8

ERV growth (%) +0.5

LfL NRI (%) +1.5

ILC (retail leasing index) turning positive (%)

Add H&M, Zara, Decathlon

Dim

Portfolio review

* Portfolio firsts

*

*

Benetton H&M JD Sport Jacadi Dim Lancel Kusmi Tea Skechers

Jacadi Benetton 123 Dim Colombus Café Pain de Sucre Pomme de Pain Just over the top L’Erbolario

*

Les Trois Fontaines, Cergy: advancing opportunity to develop a compelling Paris scheme

36

Investment

Refurbishment of existing scheme completed 2016

Progressing 33,000m2 retail and dining extension as part of a wider city centre project

Opportunity

Favourable location in Paris region and leading centre in catchment

Strong partnership with main co-owner Auchan (hypermarket)

Progress to start on site

Co-ownership agreement, building permit and retail consent obtained

Main contractor selected

Good pre-letting

Adjoining retail acquisition opportunities

(1) Excludes acquisition of additional property interests

Total development cost (1)

€230m

Portfolio review

Size upon completion

85,000m2

La Roca Village, Barcelona

Change image

Portfolio review:

Premium outlets

20 Villages

60m Visitors p.a.

Value Retail - £[1.4]bn (1)

A platform of considerable scale, now 19% of our portfolio

11 - UK shopping centres

10 - France shopping centres

1 - Ireland shopping centres

18 - UK retail parks

19 - Premium outlets

38

VIA Outlets - £[0.5]bn (1)

(1) [ ]

Opened 2010, recently extended

16,000m2

56 units

Hugo Boss, Timberland, Under Armour

Average sales growth 15% (2012-16)

Remerchandising and asset management opportunities identified

Hammerson share £47m

VIA Outlets acquisition

Norwegian Outlet, Oslo

Updated key to come

14 Countries

19% in pie??

Value Retail: continued strong growth

39

Over 40 new brands introduced

Value Retail H1 2017

Sales growth YoY (%) +10

Sales density growth (%) +8

Footfall growth (%) +2

Total return (%) +10.9

Opening October 2017

33 new units

£100m

15% YOC

Tourism and marketing - Brand marketing

collaborations: Paul Smith, Laduree, Coach

- New loyalty programme “Privilege”; Gift card sales +[31]%

- Fastest growing tourism sources: [Indonesia (+[ ]%), Russia (+[ ]%), US (+[ ]%)]

Portfolio review

Bicester Village Fidenza Village Kildare Village

La Roca Village La Vallée Village Kildare Village

Extending Bicester Village, one of the world’s most recognised and productive retail schemes

VIA Outlets: now an established outlet operator

40 (1) Excludes Mallorca Fashion Outlet and the ex-IRUS portfolio

Asset management

Rebranding of 2016 acquired assets

64 leases signed

Partnerships with tourism operators; international sales +63%

Extensions and reconfigurations

Freeport Lisboa Fashion Outlet: Major reconfiguration (Q3 2017)

Mallorca Fashion Outlet: Flagship Nike and Polo Ralph Lauren stores (Q4 2017)

VIA Outlets H1 2017

Sales growth YoY (%) +18

Sales density growth (%) +15

Footfall growth (%) (1) +8

Total return (%) +0.3

Batavia Stad extension opened Q2 2017

Portfolio review

YTD sales density +11% YTD footfall +17%

5,500 m2 added

45 new units

41

Use new format slide

04 Conclusion

Our strategy continues to deliver success

42

Portfolio positioned to benefit from retail evolution

Top-3 market position in chosen sectors

Good demand for our space in a polarising landscape

Leasing volumes +44%

Capital recycling into higher-growth markets enhancing returns

Premium outlets now 19% of portfolio

Skilled and focused teams

Product Experience Framework creates differentiated destinations

Continuing to deliver consistent returns

Sector-leading income growth

EPS +6%; DPS +6%

Victoria, Leeds

Conclusion

43

Questions

Westquay, Southampton

Disclaimer

This presentation contains certain statements that are neither financial results nor

other historical information. These statements are forward-looking in nature and

are subject to risks and uncertainties. Actual future results may differ materially

from those expressed or implied by these statements.

Many of these risks and uncertainties relate to factors that are beyond

Hammerson’s ability to control or estimate precisely, such as future market

conditions, currency fluctuations, the behaviour of other market participants, the

actions of governmental regulators and other risk factors such as the Company’s

ability to continue to obtain financing to meet its liquidity needs, changes in the

political, social or regulatory framework in which the Company operates or in

economic or technological trends or conditions, including inflation and consumer

confidence, on a global, national or regional basis.

Readers are cautioned not to place undue reliance on these forward-looking

statements, which speak only as of the date of this document. Hammerson does

not undertake any obligation to publicly release any revision to these forward-

looking statements to reflect events or circumstances after the date of these

materials. Information contained in this presentation relating to the company or its

share price, or the yield on its shares, should not be relied upon as a guide to

future performance.

44

Appendices

2.2m sq m retail space

14 Countries

UK shopping centres - £3.5bn

France - £2.2bn

Ireland - £0.8bn

UK retail parks - £1.3bn

Premium outlets - £2.0bn

Development & UK other - £0.6bn

£10.5 billion leading pan-European retail platform (1)

46

33%

21% 8%

13%

19%

6%

60 European shopping destinations

Top 3 Market position in all chosen sectors

43% non-UK assets

410m visitors

4,800 Tenants

11 - UK shopping centres

10 - France shopping centres

2 - Ireland shopping centres

17 - UK retail parks

20 - Premium outlets

(1) As at 30 June 2017 (valuation excludes Norwegian Outlet, Oslo acquisition and disposals in Thanet in July)

Focus on growing consumer markets

47

Retail formats Matched to consumer behaviour in the multichannel world: experience (shopping centres), convenience (retail parks) and retail tourism (premium outlets)

Market position Select prime property to benefit from polarisation in occupier demand

Location Selected European countries or cities benefitting from urbanisation and retail tourism Growing catchments and markets where we can gain share

Our strategy is to focus on markets which take advantage of retail property trends

Appendices

Create differentiated destinations

48

Our Product Experience Framework in action

Best at retail LinkStreet, Birmingham

Convenient & Easy

Click & Collect services

Iconic destinations Victoria, Leeds

Entertaining & Exciting Westquay South, Southampton Interactive &

engaging Developing the Plus App

Positive Places Victoria Gate community interaction

Appendices

Promote financial efficiency and partnerships

49

Financial efficiency

Flexible capital structure supports capital recycling strategy

Diversified sources of debt

Actively reducing weighted average cost of debt

Declining cost:income ratio

Accessing global capital markets – JSE Listing

Partnerships broaden our market reach, increase scale and strengthen our business

5.2% 5.0% 4.8% 4.7%

3.8%

3.1% 3.0%

0%

1%

2%

3%

4%

5%

6%

2011 2012 2013 2014 2015 2016 H1 2017

£19bn total European property platform through partnerships

Chosen operator for global capital

Reducing the cost of debt (%)

Appendices

Consumer backdrop

50 (1) Source: VISA (total and face-to-face indices); CNCC; Ireland Central Statistics Office (2) Source: Oxford Economics; annual growth; local currency

UK: VISA Consumer Spending Index growth by category (%, YoY)

Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

BRC Clothing LFL Negative Negative Negative Positive Negative Positive

Visa spending data: Clothing & Footwear

(4.0)% (4.3)% (0.4)% 2.2% (5.3)% (0.5)%

BDO Fashion sales (ex online) (1.0)% (3.4)% (0.8)% 1.2% (3.6)% 1.4%

John Lewis Fashion sales c.4% Flat c.6% c.5% Flat c.3%

UK: Fashion category indicators

-2

-1

0

1

2

3

4

5

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

France Ireland United Kingdom

Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

UK (total) 0.4 1.3 1.0 0.3 (0.9) (0.3)

UK (in store) (3.2) (3.2) (1.3) 0.1 (5.3) (2.4)

France (5.3) 0.1 1.1 (3.0) 0.4 (7.5)

Ireland 1.4 (0.3) 0.8 (0.9) 0.8 n/a

National retail sales indices (%, YoY, by value) (1) Real private consumption growth forecasts (%) (2)

TBU

Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

Food, beverages & tobacco (0.2) (0.9) (0.4) 6.0 (0.6) 1.9

Clothing & footwear (4.0) (4.3) (0.4) 2.2 (5.3) (0.5)

Household goods (2.4) (3.5) 0.0 (3.3) (4.3) (3.4)

Health & education (2.2) 1.0 7.4 (9.6) 6.8 2.2

Transport & communication (4.1) (4.6) (1.7) (9.7) (7.4) (5.8)

Recreation & culture 3.3 2.9 7.2 2.8 1.9 (1.2)

Hotels, restaurants and bars 5.7 0.9 4.2 9.1 3.3 4.9

Misc. goods & services 0.5 1.9 6.8 0.7 7.1 5.7

TBU

Appendices

European shopping centres are in a better position than the US

Source: Verdict; John Lewis retail trends

Shopping centre space per capita (sq ft)

Split of space in shopping centres by retail category (% of total centre GLA)

51

eCommerce penetration by country (% of sales, 2016)

UK has higher online sales penetration, so retailers and consumers are already well-adapted to multichannel

US has at least 5x as much shopping centre space per capital as Europe

US has higher amount of department store space within malls and less F&B. Most often department store anchors are owner-occupied.

Differences between US and UK/European retail property markets

Appendices

2017 YTD operational statistics

52 (1) Retail sales on same-centre basis, includes all shopping centres (2) France data includes VAT (rent:sales and OCR excluding department stores) (3) France data includes VAT; Jeu de Paume, Beauvais, excluded

Appendices

Occupancy (%) UK shopping centres

UK retail parks

France Ireland Group

30 June 2017 97.2 99.0 96.6 99.9 97.3

31 December 2016 97.8 98.6 96.5 99.5 97.5

30 June 2016 97.4 98.7 96.3 n/a 97.2

UK shopping centres

France

Sales (1) −3.9% −3.1%

Footfall −1.7% −2.3%

Rent:sales (2) 12.9% 12.5%

OCR (2) 20.4% 15.4%

Sales densities(3) UK £/ft2

France £/ft2

H1 2017 320 – 595 370 – 620

2016 320 – 590 395 – 690

2015 310 – 620 220 – 620 Check number

H1 2017 portfolio leasing overview

53 (1) Including UK Other and Ireland properties, principally assets held for development and non-core

Leasing vs previous passing

(%)

Leasing vs ERV (%)

ERV growth (%)

Rent secured from new leases

(£m)

UK shopping centres 5 5 +0.5 6.6

UK retail parks −2 11 +0.3 3.9

France 9 8 +0.5 5.8

Ireland 3 13 +2.5 1.5

Group (1) 6 8 +0.6 18.1

Appendices

Tenants in administration

54

30 June 2017 % of passing rents

42 units in administration 0.8

8 units unoccupied 0.1

31 December 2016

44 units in administration 0.7

9 units unoccupied 0.1

30 June 2016

71 units in administration 1.4

5 units unoccupied 0.1

Appendices

UK shopping centre investment

55

Capitalised Recoverable from tenant

Direct/indirect return?

Selection of examples

1. Hammerson operating expenses n/a Car park expenditure; landlord marketing; interactive

hoardings, upkeep collection lockers/mobile phone charge points, research and marketing costs

2. Service charge (maintenance) n/a Painting, flooring upkeep, footfall counters, CCTV, wifi

upgrade, IT upgrades

3.a Investment projects (hygiene) Partial Direct / Indirect Wayfinding projects, WC upgrades, LED lighting, public

seating upgrades

3.B Investment projects (value-add) Direct Creating new lettable space: e.g. CAU Oracle, Costa

Westquay, car parks projects

2014 2015 2016Ref £m £m £m

Gross rental income 149.4 162.0 174.2Service charge income 27.0 28.7 34.0Total income 176.4 190.7 208.2Service charge expenses (excl. maintenance capex) (23.5) (25.3) (32.9)

1 Other property expenses (Hammerson NRI) (19.4) (20.6) (22.4)Net cash flow before maintenance capex 133.5 144.9 153.0

2 Maintenance capex - service charge (Service charge P&L) (5.6) (6.1) (4.6)3 Maintenance capex - land and buildings (Hammerson L&B) (9.7) (9.6) (12.6)

Net "cash flow" from Operations 118.2 129.2 135.8Maintenance capex:Total income, % 9% 8% 8%

Hammerson UK shopping centre cash flow statement 2016 £m

2015 £m

2014 £m

Gross rental income 174.2 162.0 149.4

Service charge income 34.0 28.7 27.0

Total income 208.2 190.7 176.4

Service charge expenses (excl. investment) −32.9 −25.3 −23.4

Other property expenses (Hammerson NRI) −22.4 −20.6 −19.4

Net cash flow before maintenance capex 153.0 144.9 133.5

Investment spend (service charge maintenance projects) −4.6 −6.1 −5.6

Investment projects (capex on maintenance or ‘value-add’ projects) −12.6 −9.6 −9.7

Net cash flow from Operations 135.8 129.2 118.2

Maintenance capex: total income, % 8% 8% 9%

1

2

3a + 3b

1

2

A

B

A/B

3a

3b

Appendices

UK retail parks market split and Hammerson ownership

56 (1) Source: PMA; Market and portfolio split by number of parks; Adjusted for disposals

Shopping parks Hybrid parks Key homeware goods parks

Standard homeware parks

Solus units

Higher rental growth segments

Shopping parks

Hybrid parks

Key homeware goods

Standard homeware

Solus

40% 84%

Hig

her

renta

l g

row

th

UK retail parks market (1) Hammerson portfolio

Appendices

Value Retail Villages VIA Outlets centres

Bicester Village, UK (1)

GLA: 22,700m2

Boutiques: 135

Batavia Stad Amsterdam Fashion Outlet (2)

GLA: 31,000m2 Units: 110

La Roca Village, Barcelona GLA: 23,400m2 Boutiques: 141

Fashion Arena Prague Outlet GLA: 24,100m2 Units: 98

Las Rozas Village, Madrid GLA: 16,500m2 Boutiques: 105

Freeport Lisboa Fashion Outlet GLA: 29,500m2 Units: 98

La Vallée Village, Paris GLA: 21,400m2 Boutiques: 111

Hede Fashion Outlet, Gothenburg GLA: 16,300m2 Units: 53

Maasmechelen Village, Brussels GLA: 19,500m2 Boutiques: 106

Landquart Fashion Outlet, Zurich GLA: 20,700m2 Units: 71

Fidenza Village, Milan GLA: 20,900m2 Boutiques: 122

Mallorca Fashion Outlet GLA: 33,100m2 Units: 52

Wertheim Village, Frankfurt GLA: 21,100m2 Boutiques: 121

Sevilla Fashion Outlet GLA: 16,300m2 Units: 67

Ingolstadt Village, Munich GLA: 20,500m2 Boutiques: 120

Wroclaw Fashion Outlet, Poland GLA: 13,700m2 Units: 85

Kildare Village, Dublin GLA: 16,800m2 Boutiques: 99

Zweibrücken Fashion Outlet, Germany GLA: 29,400m2 Units: 113

Vila de Conde Porto Fashion Outlet GLA: 27,800m2 Units: 125

Norwegian Outlet, Oslo GLA: 16,000m2 Units: 56

57

Premium outlets portfolio

(1) Not including extension opening October 2017 (2) Including extension opened May 2017

Appendices

Hammerson’s total investment in Value Retail: 41% (1)

Holding companies 25% equity

Bicester Village

33

46

La Roca Village

23

36

Las Rozas Village

19

32

La Vallée Village

11

23

Maasmechelen Village

13

26

Fidenza Village

20

33

Wertheim Village

31

44

Ingolstadt Village

0

12

Kildare Village

27

40

58 (1) Hammerson’s share of Value Retail’s net assets at 30 June 2017, excluding goodwill (2) Largely represent the economic interests in Spanish Villages, structured as loans rather than equity

Village ownership via LPs (%)

Total Village ownership (%)

Hammerson €2m shareholder loan

Hammerson is the second largest shareholder in holding company after management. Largest owner of VR as a whole. Other shareholders include APG, SPG, private investors (family and friends)

VR ownership (1) Hammerson share (£m)

Value Retail 100% £m

%

GAV 1,533.6 4,496.5 34

Participative loans (3) 126.4 0 100

GAV plus participative loans 1,660.0 4,496.5 37%

Other assets 119.7 437.3 27%

Total liabilities (762.5) (2,436.9) 31%

Investment in associate excl. goodwill 1,017.2 2,496.9 41%

Appendices

Tourism is a key driver of outlets sales growth

Top 10 source markets represent 68% of sales in EU destinations, and is forecast to grow by 8%

59 (1) Source: Premier Vision Annual Review 2016/2017 (data from Oxford Economics)

Growth non-EU arrivals to EU countries 2017 (%) (1)

Non-EU arrivals will see growth of c.5% in 2017. All European destination markets are predicted to see gains

Top tax free nationalities sales growth 2017 (%) (1)

Appendices

On site developments

Scheme (1) Lettable area m2

Expected completion

Value 30 Jun 2017 £m(2)

Estimated cost to complete(3)

£m

Estimated annual income(4)

£m

Let (5)

%

Parc Tawe, Swansea 21,400 Q4 2017 n/a 9 2 76

Elliott’s Field Shopping Park (Phase 2), Rugby

7,900 Q4 2017 24 14 3 78

Orchard Centre, Didcot 8,700 Q1 2018 21 23 3 45

Total 38,000 46 8

60 (1) Group ownership 100% for all on-site schemes (2) Values are not included for extension projects which are incorporated into the value of the existing property (3) Incremental capital cost including capitalised interest (4) Incremental income net of head rents and after expiry of rent-free periods (5) Let or in solicitors' hands by income at 25 July 2017

Appendices

NB aligned with final press

release

Scheme Area (m2)

Brent Cross extension 90,000 Extension and refurbishment of Brent Cross forming part of wider Brent Cross Cricklewood regeneration plans, totalling 175,000m2 of retail, catering and leisure. Reserved matters planning application submitted with decision expected in September 2017. CPO decision expected in September 2017.

Bristol investment properties (1) 74,000 New planning application in the name of Callowhill Court submitted December 2016 for 3.5ha site of joint venture-owned land relating to part of the real estate adjoining Cabot Circus. Masterplan includes up to 74,000m2 retail and leisure, 500 car parking spaces, and the potential for 150 residential units and a 150 room hotel.

Croydon Town Centre 200,000 Redevelopment of Whitgift Centre and refurbishment of Centrale shopping centre by the Croydon Partnership., a 50:50 joint venture between Hammerson and Westfield. New outline planning application submitted in October 2016 with decision expected in autumn 2017.

Silverburn (Phase 4), (1) Glasgow 50,000 Consent granted in 2015 for a masterplan for a future extension of existing centre. Masterplan includes 31,250m2 retail, 8,500m2 leisure and a hotel.

Union Square, Aberdeen (1) 27,800 Extension of existing shopping centre for up to 11,000m2 of retail, 12,000m2 of leisure and catering, plus up to 300 car parking spaces and a hotel. Planning application due for determination by summer 2017.

Victoria, Leeds (Phase 2) (1) 73,000

Phase 1 Victoria Gate completed October 2016. Operator being sought for up to 300 bed hotel adjacent to new multi-storey car park. Phase 2 masterplanning underway to deliver phased retail/leisure mixed-use scheme to complement Victoria Gate. Freehold control of Phase 2 site obtained.

WestQuay South, Southampton (Phase 2) 58,000 Council-owned land, with potential for c.260 residential units, a hotel and number of retail units to complement the recently completed cinema and catering scheme. A joint review of scheme underway with the local authority and third parties to progress the project.

Oldbury, Dudley (1) 10,900 Planning secured in May 2016 for new development of up to 11 retail and catering units. Leasing underway.

The Goodsyard, London E1 270,000 4.2ha site on edge of City of London. Planning application for major mixed-use development was deferred in April 2016 to allow further consultation. Work on-going to submit amended application in early 2018.

Italie Deux, Paris 13ème 6,500 Extension of the existing shopping centre offering a new façade and innovative concepts. Land disposal approved by the City of Paris. Building permit submitted. Retail consent obtained and free from challenge. Pre-letting on-going.

Les 3 Fontaines, Cergy Pontoise 33,000 Retail and catering extension as part of a wider city centre project. Co-ownership agreement, building permit and retail consent obtained. On-going pre-letting discussions and contractor selected.

SQY Ouest, Saint-Quentin-en-Yvelines (1) 32,000 Opportunity to reposition existing shopping centre, creating a leisure-led destination. Trading consent obtained but challenged. Pre-letting on-going, Phase 1 launched to handover first units in second half of 2017.

Dundrum Phase II, Dublin (1) 100,000 Six acre site located adjacent to Dundrum Town Centre. Opportunity to create a retail-led mixed used scheme; masterplanning process underway.

Dublin Central, Dublin (1) 130,000 Extension of duration of planning consent granted until May 2022 to create a retail-led city centre scheme. Irish government has appealed a High Court decision to designate part of the site as a National Monument. The Group is supporting the process and a hearing is expected in December 2017.

Swords Pavilions Phase III, Dublin (1) 272,000

Extension of planning consent granted to August 2021. Consent in place to create 124,000m2 retail-led scheme including residential units. Pending completion of loan to own process for Phases I and II, subject to regulatory clearance due later this year.

Total 1,427,200

Development pipeline opportunities

(1) Schemes are on Group owned land. No additional land acquisitions are required. Excludes occupational and long leaseholds.

61 Appendices

NB aligned with final press

release

H1 2017 valuation data

62

UK shopping centres

UK retail parks

France Ireland UK other interests

Total portfolio

True equivalent yield (%)

30 Jun 2017 5.1 6.0 4.5 4.3 7.3 5.0

31 Dec 2016 5.1 6.1 4.4 4.3 7.4 5.1

ERV (£m)

30 Jun 2017 187.3 78.5 110.6 35.6 13.4 425.4

31 Dec 2016 186.8 77.1 107.9 34.8 13.4 420.0

LfL change (%) +0.5 +0.3 +0.5 +2.5 +0.4 +0.6

Appendices

H1 2017 components of valuation change

63 Note: Development and other includes the movement in the UK Other interests portfolio where valuations increased by a total of £3m during H1 2017

Components of valuation change in H1 2017, total portfolio (£m)

11

-1

3 0 0

11

22 20

5 2

21

0

108

156

-1

12

-4

0 2

-4

10

30

16

1

21

2

115

188

-50

0

50

100

150

200

UK shoppingcentres

UK retail parks France Ireland Developments Premium outlets Total Portfolio

Yield Income Development and other Total

UK shopping centres

Appendices

Sensitivity to FX movements

64

Income statement As reported

Weaker GBP

Change Stronger GBP

Change

GBP/EUR 1.162 1.056 -10% 1.278 +10%

Net rental income (£m) 184.0 190.5 +3% 178.0 −3%

EPS (p) 15.1 15.6 +3% 14.6 −3%

Balance sheet

GBP/EUR 1.139 1.035 10% 1.253 +10%

NAVPS (p) 771 783 +1% 761 −1%

Net debt (£m) 3,710 4,024 +8% 3,424 −8%

LTV (%) 37.3 38.9 +160bps 35.8 −150bps

Appendices

30 Jun 2017

Net debt

Reported Fully proportionally consolidated

Group 3,710 3,710

VIA Outlets - 124

Value Retail - 436

Loan 3,710 4,270

Property values

Group 8,495 8,495

Ireland (loans) 111 111

VIA Outlets - 499

Value Retail - 1,534

Less minority interest (84) (84)

VIA Outlets net assets 325 -

Value Retail net assets 1,097 -

Value 9,944 10,555

LTV 37% 40%

LTV methodology

65 Appendices

14.6% 13.3% 12.8% 11.8% 11.9% 11.5%

11.9% 10.9%

10.0% 11.3% 10.7% 9.0%

0%

5%

10%

15%

20%

25%

30%

2012 2013 2014 2015 2016 H1 2017

Corporate expenses Operational costs

Cost:income ratio

66

Cost:income ratio (%)

26.5% 24.2%

22.8% 23.1%(1)

(1) Excluding car park costs (£9.3m in 2015) cost:income ratio would be 21.1% (2) Excluding car park costs (£9.5m in 2016) cost:income ratio would be 20.7% (3) Excluding car park costs (£5.1m in H1 2017) cost:income ratio would be 18.5%

Appendices

22.6%(2)

20.5%(3)

Our new Positive Places objective is for Hammerson to be Net Positive for carbon, water, resource use and socio-economic impacts by 2030

Carbon Net Positive for carbon means carbon emissions avoided exceed emissions generated.

Resource Use Net Positive for resource use means waste avoided, recycled or re-used exceeds materials used that are neither recycled, renewable nor sent to landfill.

Water Net Positive for water means water replenished by external projects exceeds water consumed from mains supply.

Resource Use Net Positive for socio-economic impacts means making a measurable positive impact on socio-economic issues relevant to our local communities beyond a measured baseline.

“I am proud that Hammerson has become the first real estate company globally to identify such comprehensive targets and by extending our aims to tenant impacts we will be able to directly support our retail clients and deliver best in class retail assets that are fit for the future.” David Atkins, CEO, Hammerson plc

Steps to becoming Net Positive

2015

27,000 tonnes CO2e

539,082 m3 water

18,243 tonnes waste not recycled or reused

2016

24,000 tonnes CO2e

511,888 m3 water

17,293 tonnes waste not recycled or reused

40,000 FTE jobs supported across our assets

2017

Deliver carbon neutral development at Rugby

Install 3 further solar PV arrays

Reduce energy demand by further 7% v 2015 baseline

Achieve 85% recycling

2018 – 2020

Work with tenants to reduce tenant on site energy demand

Major developments to support long term carbon reduction

Identify local carbon saving projects

2021

CO2e reduced by at least 27000 tonnes

Embed net positive into new developments

Increase renewable capacity

68 Appendices

Hammerson Net Positive

Designed a carbon neutral, BREEAM Outstanding retail park with full co-operation from tenants. We are on track for delivery during 2017

Published a full Carbon Footprint for the Group

Approved install of a 198kWp PV array at Cabot Circus – scheduled to be completed during H2, taking total capacity to 500kWp

Achieved further reduction in carbon emissions

69

Published True Value of Retail – the social impact footprint of the Group

Key data:

40,000 fte jobs across our portfolios

£800m generated in wages

82% of jobs to local people

48% to under-25s

Our ambition to be net positive for carbon emissions, water and resource demand and socio-economic impacts by 2030 So far during 2017 we have:

Appendices