H1 2020 RESULTS _ 29-July-2020 www.larespana.com 29 07 - PowerPoint PPT Presentation

H1 2020 RESULTS _ 29-July-2020 www.larespana.com

29 07 2020 Index 1. 2. 3. 4. 5. COVID-19 H1 2020 H1 2020 H1 2020 H1 2020 Update Highlights Financials & Operating Closing situation ESG results remarks

01 COVID-19 UPDATE SITUATION _

29 07 2020 COVID-19 effects Business model I GLA and visitor numbers II Protected portfolio III Effects in valuations and balance sheet IV Estimated impact V 4

29 07 2020 I. Solid business model to overcome current situation Lar España assets are in a position to guarantee all health-hygiene safety, • social distancing and customer communication measures. DIFF FFER ERENTI ENTIATED, TED, Pioneering COVID certification with SGS to guarantee hygiene safety in all • 100% ASSETS S DOMI MINANT NANT AND SAFE our assets. OPENE NED D AND IN ASSETS TS IN EACH H Large spaces to avoid unnecessary crowding, the best environmental and • OPERATION ATION LOCATIO ATION accessibility practices and cutting-edge technology. The refurbishments and improvements carried out in recent years means • they are now far better-equipped to meet these new requirements. CAPACIT ITY Y TO ASSUME Net LTV: 41%. THIS IS SCENAR ARIO IO: • STRESS SS PLANS S Avg. cost of debt: 2.1%. • SOLI LID D COMPANY NY WITH H APPLIE IED TO ANNUA UAL L 84% fixed rate and no relevant maturities in the next 2 years. • A S STRON ONG G FINANCIAL NCIAL BUSINE NESS SS MODEL EL Cash position: c.€140 Mn. • STRUCTU TURE RE WITH H A Cash strength to cover all the company's expenses, including financial • SATIS ISFAC ACTO TORY Y costs, in the next 4 years. RESULT LT 5

29 07 2020 II. Positive pickup in GLA opened and visitor numbers GLA opened Footfall recovery 100% 100% 98% 98% 95% 92% 48% 32% 10% Jan Feb Mar Apr May Jun Jul 14 21 State te of Alarm rm Mar Jun 6

29 07 2020 III. Protected portfolio with an optimal activity mix, dominance and solid tenants COVID-19 Diversified Dominant assets in 100% assets High percentage Differential brands least affected multiproduct its catchment areas SGS certified of food tenants in the portfolio areas retail offer (not MAD or BCN) to guarantee hygiene safety Product breakdown Tenant breakdown c.50 Inditex stores SHOPPING FOOD 62% 62% 20% CENTRES TENANTS ESSENTIAL RETAIL 34% 34% 5% 5% PARKS RETAIL 1 RETAIL OTHER 4% 4% 75% 75% UNITS RETAIL % GLA % Rents Full ownership of assets Retail unit c.100% GLA owned 7 1. Includes pharmacies, tech tenants and pet stores, among other.

29 07 2020 IV. COVID-19 effects (valuations and balance sheet) Effect ect on valuati ations Effect ect on balanc ance sheet +24.4% % increase ease in rental al income +65.5% recurring profit increase isolating the valuations’ impact vs Jun 19 vs Dec 19 Chg% H1 2020 H1 H1 2019 Recurring H1 20/19 Including Capex +3.7% (2.9%) Invested Rental Income 47.9 38.5 +24.4% Changes in the Fair Value of (55.9) 14.0 investment properties Excluding Capex (2.0%) (3.6%) Invested Profit for the Period (28.7) 28.6 +65.5% Recurring Profit for the Period 28.1 28 .1 17 17.0 .0 8

29 07 2020 V. COVID-19 effects (agreements with tenants and estimated impact) AGREEMEN MENTS AND CONVERSATIO IONS WITH TENANTS ESTIMA IMATED D IMPACT PACT OF COVID-19 IN P&L Agreements reached Contracts >2024 85-90% GLA + 60% Agreed rent reliefs Total rents Total rents Total rents Q1 2020 Q2 2020 H1 2020 and deferrals €24.1 Mn €23.8 Mn €47.9 Mn e.Impact in P&L due to COVID € 15-17 Mn 1 FY 2020 <3% 1 +24.4% INVOICE ICED COLLECTE TED RENTS TS RENTS TS OVER R INVOICE ICED vs H1 2019 January 100% 100% Linear impact in P&L during the duration of February 100% 100% each contract March 100% 95% (Avg. 7 -8 years) April 25% 100% May 25% 100% 9 1. Taking into account the agreements reached with tenants on 85-90% GLA. Calculation assuming no second lockdown and shopping centers remaining fully open in H2 2020.

02 H1 2020 HIGHLIGHTS _

29 07 2020 Operational results in H1 2020 +27.2% 1,506 +82% +60% NOI vs H1 2019 GAV 2 €10.64 Adj. EPRA Earnings p.s. EBITDA EPRA NAV +3.5% RESULTS (2.9%) +3.7% vs H1 2019 vs H1 2019 p.s. 3 LfL 1 NOI vs H1 2019 vs Dec 2019 vs Jun 2019 Resilient operating +8% 95% 3.3 years performance Rent uplift Occupancy 4 WAULT ASSETS in sales and footfall leasing activity 30 Jun 2020 1. Like for Like (excluding Lagoh shopping centre). 2. Information based on valuations carried out by independent valuers on 30 June 2020, reflecting the impact of the pandemic crisis and the declaration of the State of Alarm. 3. When analyzing this measure it is important to take into account the dividend paid in Q2 2020 (0.63€/share). 11 4. Ratio calculated according to EPRA recommendations.

29 07 2020 Corporate results in H1 2020 Net LTV rd SBB 3 rd SBB c.€140 Mn liquidity €55 Mn dividend 1 41% Programme Expenses covered €0.63 p.s. maintained Avg. cost of debt CORPORATE over the next 4 years Divi vide dend nd paid d 2.1% 5% share capital 100% 100% AENOR Univesal 100% Accesibility Certification Assets 2 Recommendations of the Shopping centres ESG SGS certified CNMV Good Governance Code VidaNova Parc & BREEAM certified complied Vistahermosa against COVID-19 EPRA Gold Award - Financial Reporting EPRA Gold Award - Sustainability Reporting 2015 2016 2017 2018 2019 2018 2019 1. Dividend paid on April 16 th , 2020. 12 2. 100% assets fully owned.

03 H1 2020 FINANCIALS & ESG _

29 07 2020 Financial key figures delivered in H1 2020 15 €47.9 Mn +24.4% Assets GRI vs H1 2019 €905.3 Mn €1,506 Mn €37.2 Mn +60.5% €26.9 Mn EPRA NAV GAV EBITDA vs H1 2019 EPRA Earnings 2.1% 578,460 €754.2 Mn €10.64 €0.31 EPRA NAV per share 1 EPRA Earnings per share GLA sqm Financial debt Cost of Debt 41% 6.5% 3.3 y €620.9 Mn 6.0% WAULT Net financial debt Net LTV EPRA Topped-up NIY Reversionary Yield 14 1. When analyzing this measure it is important to take into account the dividend paid in Q2 2020 (0.63€/share).

29 07 2020 Retail performance delivered in H1 2020 Operating results Commercial activity +4.1% (15.1%) +23.6% +27.2% €2.7 Mn 10,758 sqm Minimum Non-recoverable GRI NOI Negotiated rent Rotated area guaranteed rent 1 costs 1 +1.1% +3.5% 95% 46 +8% LfL GRI 1 LfL NOI 1 % Occupancy 2 Operations Rent uplift 1. Like for Like (excluding Lagoh shopping centre) 15 2. Ratio calculated according to EPRA recommendations.

29 07 2020 Solid asset valuation with a minimum impact of COVID Our assets make the difference in each of their locations H1 2020 Valuation A resilient portfolio of dominant shopping ▪ €1,506 Mn centres in attractive catchment areas Cherry-picked portfolio, assets carefully ▪ % Increase analysed and selected without buying portfolios 50.0% Assets c.100% owned, delivering flexibility, ▪ control and full decision capacity 3.7% Solvent and diversified tenant base with a ▪ WAULT of 3.3 years and close medium- and long-term relationships (2.9%) Grupo Lar real estate experience of +50 ▪ years and proved retail management 1 Dec 2019 Jun 2019 Acquisition experience in past financial crisis Including Capex Invested 16

29 07 2020 Consolidated Income Statement (€ Millions ) Chg% H1 2020 H1 2020 H1 2019 Recurring H1 20/19 Recurring Non-Recurring Total Recurring Non-Recurring Total +24.4% Rental Income 47.9 - 47.9 38.5 - 38.5 Other Income 1.1 - 1.1 1.2 - 1.2 Personnel expenses (0.2) - (0.2) (0.2) - (0.2) Other expenses (10.9) (0.8) (11.7) (12.8) (3.6) (16.4) +41.9% +41. 9% 37.9 .9 (0.8 .8) 37.2 .2 26.7 .7 (3.6 .6) 23.1 .1 Property Operating Result Changes in the Fair Value of investment properties - (55.9) (55.9) - 14.0 14.0 +41.9% EBIT 37.9 .9 (56.7) (18 (18.7 .7) 26.7 .7 10.5 37.2 .2 Financial Result (9.8) - (9.8) (9.7) - (9.7) Share in profit (loss) for the period of equity-accounted companies - (0.2) (0.2) - 1.2 1.2 EBT 28.1 .1 (56.8) (28 (28.7 .7) 17.0 .0 11.6 28.6 .6 Income Tax - - - - - - +65.5% Profit for the Period 28.1 .1 (56. 6.8) 8) (28 (28.7 .7) 17.0 .0 11.6 .6 28.6 .6 17 Notes: May not foot due to rounding. Information audited as at June 30 th .

29 07 2020 Financial pillars and liquidity No significant maturities in the next two years Expenses covered over Debt Structure and the next 4 years As at 30.06.2020 Amortization Profile Gross Net € Mn € Mn financial debt financial debt €140 Mn €614.2 Mn €754.2 Mn €620.9 Mn Senior Bank c.140 Secured Bond Debt 288.7 254.5 Fixed Avg. debt rate maturity 140.0 84% 3.4y 173.3 Net LTV 41% Covenants 114.5 34.7 100% Avg. 3.0 complied cost of debt Cash after deducting 2019 2.1% dividend payment 2020 2021 2022 2023 > 2023 18