FULL-YEAR RESULTS 2016 Financial performance & Operations - PowerPoint PPT Presentation

Schiphol, 3 February 2017 FULL-YEAR RESULTS 2016

Financial performance & Operations OPERATIONS FY 2016 FY 2015 LFL growth sh. Direct result per share € 3.45 € 3.23 centre portfolio Indirect result per share € (0.95) € (0.88) 100bps > indexation EPRA NAV per share € 51.47 € 52.10 40bps > indexation Dividend per share € 3.08 € 3.01 LTV 39.0% 37.5% Occupancy shopping centres 97-98% longer term 95.5% (+0.7% in H2) 2 2

STRATEGY

On all fronts we have delivered on or above target 2013 2014 2015 2016 360 360  125 200 LFL 160 Target 270 180 100 bps 140 100 100 200 Indexation 40 90 60 40 98.4% 98.6% 96.3% 95.3% 95.5% 98% 98%  Occupancy Target 93.8% 93.9% 93.5% 93% % Excl. FR Total Excl. FR/NL Total Excl. FR/NL Total acquisition acquisition acquisition 17.6 16.3 14.5 16.5 17.5 14.0  Cost control 14 14 Target € m • French shopping centres: acquisition price € 832m versus valuation 2016 YE € 900m  Acquisitions 1 • Dutch shopping centres: acquisition price € 720m versus valuation 2016 YE € 741m +8% p.a. Target 6-9% p.a. 3.45 3.23 2.97  2.86 EPS € 4 Note 1: Excluding transaction costs

• Targets at acquisition:  • Establish French country team French 94.4%  • Stabilize NRI at € 46m in 2015 91% shopping 93% centres • Increase NIY by 1 +/- • 20bps in 2016 No inflation, Saint Sever Acquired • 20bps in 2017 partially under development December 2014 Occupancy Occupancy • Value increased from € 832m to € 900m at acquisition 2016 • Targets at acquisition (for 2018): • Increase occupancy to 98% 94.8% Well on track Dutch 92% • Reduce opex 10% by bringing shopping Current centres key functions in house reorganisation • NRI increase if targets are met € 3-5m In progress Acquired September • Value increase from € 720m to € 741m 2015 Occupancy Occupancy at acquisition 2016 5 Note 1: With as basis the original acquisition value of € 832m

• Dutch consumer confidence increasing • Unemployment at very low level • Retail sales are bottoming out 20 July 2016 20 October 2016 18 January 2017 “ Consumenten geven “ Aanhoudende groei “ Fors meer hypotheek • House prices increasing strongly meer uit dan trekt arbeidsmarkt in aanvragen in 2016, vorig jaar ” hogere versnelling ” ook onder zzp'ers ” First signs of positive sentiment for Wereldhave Strong reduction of bankruptcies at season shift: 4.7% (Dec 2015 – Jan 2016) vs. 0.5% (Dec 2016 – Jan 2017) 6 Source: Het Financieele Dagblad, NOS Teletekst

• Strategic review finalised in 2016 as target price level was not achieved • Challenging macro economic situation Finland • Brexit impacting investment climate • Anttila bankruptcy • Base performance indicators are strong • Occupancy increased from 92.5% in 2015 to 95.7% in 2016 • Footfall increased from 16.9m in 2015 to 17.3m in 2016 • Tenant sales up 2.4% in 2016 (better than market for non-food) • We are convinced of our ability to maintain current and create additional value • Introduction unique cinema driving footfall, dwell time and spending (18m post opening) • Uplift F&B in quality, quantity and rent level • Solid outlook • Finnkino opening end of 2018 • € 20m capex is included in the valuation • Expected year on year increase NRI 2017 - 2019 7

1 hyper c26,000 All daily 155m 32 € 3.8bn or 2-3 sqm needs visitors assets portfolio super- average available total markets size Critical mass in four attractive Convenience shopping criteria Dominance in their catchment retail markets implemented in all our areas shopping centres Strong € 200m € 200m € 17.6m 39% Baa1 local development overhead LTV rating disposals teams pipeline Cost control Disciplined asset rotation Strong balance sheet 2017 - 2019 8

CONVENIENCE SHOPPING CENTRES

Prime locations in Between 20,000 and Food anchored Dominant in their regional cities 50,000 sqm catchment areas sqm GLA per shopping centre Average GLA split Catchment area >100,000 inhabitants within 10 min 50,000 drive time Food incl. F&B / 28% 25% 25,965 Leisure 7,500 72% Other Gallery Regional type jumbos average • Located in cities with • Offering all daily • Containing 1 hyper or • Visitor number strong underlying shopping needs and 2-3 supermarkets growth above market demographic and social experience (31 out of 32 economic shopping centres) fundamentals 10

Drives footfall Resilient through the cycle Resilient to online Footfall # per week 1 The Netherlands Wereldhave categories in portfolio 2 30,000 140 Supermarkets 25,000 Internet 130 28% 33% GDP resilient 20,000 120 110 48% 48% Omnichannel 10,000 Fashion 100 5,000 90 24% 19% Internet risk 80 Small Small Medium Large 2006 2008 2010 2012 2014 2016 2012 2016 specialty Supermarkets • Supermarket anchors ensure • Food spending in • Resilience increased from strong footfall (2/3 of visitor supermarkets steadily 76% in 2012 to 81% in 2016 base) increased since 2006 Note 1: Based on footfall figures for the Netherlands Note 2: ‘Internet resilient’: F&B / Leisure, food, services , ‘ Omnichannel ’: Fashion & accessories, health & beauty, homeware & household, sport, ‘Internet risk’: Department & variety, multimedia & e lectronics, shoes & leatherwear 11 Source: CBS, Company analyses, Eurostat

STRATEGIC MANAGEMENT AGENDA 2017-2019

Phase Focus  Derisk  Disposal United States, United Kingdom and Spain 2012 - 2013  Regroup  Building of retail platform 2013 - 2014  External growth: acquisition French and Dutch portfolios  Growth 2014 - 2015  Disposal French offices  Integration  Integration of French and Dutch acquisitions 2015 - 2016  Optimisation  Optimising the retail platform, realising internal growth 2017 - 2019 13

Ageing & Proximity, Shopping Mobile Trends urbanisation time efficiency experience world Regional Easy in, Convenience & Internet resilient Wereldhave response cities easy out social experience tenant mix Realise Ensure Enhance Maintain asset all centres customer leasing refreshed (2018) 1 rotation journey excellence Note 1: Minimal deferred capital expenditures. Excluding development pipeline 14 Source: McKinsey & Company Rewriting retail: a sector in acceleration towards 2025

• Overall retail environment requires agility and Lease expiration profile shopping centres 1 flexibility 14% ~30% 13% 12% 11% 10% • Markets in core countries are in different phases: 8% 7% 7% 7% • Netherlands: recovering 6% • Belgium: stable • France: stable • Finland: challenging, stabilising 2017 2018 2019 2020 2021 2022 2023 2024 2025 >2025 • Fully dedicated to be preferred partner for our • Occupancy increase offsets expected pressure on retailers: rent levels 2017 – 2019: • Tenant intimacy • 30% of leases expire in 2017 – 2019 • Quick response • Rent levels for 70% of expiries at least stable • Embedded in catchment area • Increase in occupancy from 95% to 97% 15 Note 1: Excluding indefinite contracts

• Organisation expanded in 2014 -2015 to • Streamlined management team accommodate further growth • CEO liaising directly with Country Directors • Increase of management team and group • Cross border activities allocated to Country functions Directors • Klépierre acquisition doubling our Dutch • Selected group roles shared with Dutch team organisation (HR, legal, sustainability) • Hiring of new IR in process • Organisation now needs to be further optimised • Limited external growth (CIO left) • Dutch headcount reduced on the back of finalised • Acquisitions fully integrated and cross integration border activities embedded (COO to • Asset base x2: from € 0.7bn to € 1.5bn leave on 1 April 2017) • Headcount > x2: from 28 FTE (begin 2014) to 73 FTE (end 2016) • The new setup is intended to achieve • Optimise headcount to maximum of x1.5 = 53 FTE • Quick decision making (agility) • P&L responsibility • Direct accountability • € 1.5m one off expenses 2017, € 2m annual savings 1 • Culture of entrepreneurship & innovation (-/- 24 FTE) 16 Note 1: Full impact as of 2018

Strategic direction Targets 2017 - 2019 2016 • FI + • Optimise customer journey • NL + • Drive footfall above Respond to market consumer trends • Continue tenant intimacy • BE +/- • FR +/- • Improve resilience of tenant base 1 • >85% resilient • 81% • Increase occupancy • 97% occupancy • 95% Drive EPS • Maintain low cost of debt • <2% at longer maturities • 1.9% • Realise asset rotation • € 200m disposals • N.a. • Complete development pipeline • € 187m pipeline • N.a. Optimise portfolio • Sustainability • Keep front position • Green star, DJSI Europe • Limited external growth • Selective acquisitions • Assertive entrepreneurship • Behaviour driven and P&L Tailor • € 15 - € 16m overhead p.a. • € 17.6m responsibility organisation • Innovation 17 Note 1: Tenants characterised as fashion & accessories, F&B / Leisure, food, health & beauty, homeware & household, services or sport