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F U L L -Y E A R E A R N I N G S
K L É P I E R R E , R E T A I L O N L Y ®
F e b r u a r y 7 , 2 0 1 7
DISCLAIMER
This document was prepared by Klépierre solely for use of presenting the Klépierre 2016 full year earnings published on February 6, 2017. 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.
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TABLE OF CONTENTS
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01 RETAIL IS CHANGING…
SO IS KLÉPIERRE
03 2016 FINANCIAL PERFORMANCE
02 2016 OPERATING PERFORMANCE
04 DEVELOPMENT
PIPELINE
05 OUTLOOK
2016: A RECORD YEAR
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€2.31 NET CURRENT CASH FLOW ps
+6.8%
€1.82 PROPOSED DIVIDEND
+7.1%
+3.5% NET RENTAL INCOME LFL GROWTH
320 bps Outperformance over indexation
€36.7 EPRA NAV +5.9%
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R E TA I L I S C H A N G I N G …
S O I S K L É P I E R R E
5
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Shifting values and behavior
New demographics
Connected and empowered consumers
Expects a personalized and consistent shopping experience
Finds the right information in the right place to make the best decision
RETAILERS FACE NEW CONSUMERS
ONLINE AND OFFLINE MERGE AND ENRICH EACH OTHER
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Online platform
Physical store
Convenience
Loyalty
Branding
Transformation
UNICHANNEL IMMERSIVE RETAIL EXPERIENCE
Seamless
Inventory
Marketing
STORE PROPOSITION REINVENTED
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Right size
E-services
Selectivity
Emotion . .
WHY ADAPTIVE RETAIL HAPPENS IN OUR MALLS
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2 An unrivalled client base
1 The best platform
3 Client-centric asset management
RETAILERS KEEP INVESTING IN STORES
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1 Estimated amount based on a representative sample of leases signed in 2016 and extrapolated for the entire portfolio.
€318 M1
E S T I M A T E D A M O U N T I N V E S T E D B Y R E T A I L E R S I N O U R S H O P P I N G C E N T E R S I N 2 0 1 6
KLÉPIERRE’S INITIATIVES SUPPORTING MALL TRANSFORMATION
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Customers Marketing & Innovation Retailers Long term Enriching the shopping experience
Creating the properties our retailers want
Ensuring a seamless customer journey
Making sustainable decisions
RETAIL FIRST LET’S PLAY® GOOD CHOICES® CLUBSTORE®
ASSET ROTATION SUPPLEMENTS OUR STRATEGIC TRANSFORMATION
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Our capital allocation mirrors the positioning and expansion plans of the best retailers
Focus on catchment area and demographic growth
Value-creating pipeline Focus on extensions
rather than greenfield projects
Targeted acquisitions Strong track record
of creating value through acquisitions
Opportunistic disposals Bulk of the portfolio’s
transformation completed (€5.2 Bn in disposals
over the past 5 years)
1.99
2.07 2.07
2.17
2.31
43.6%
43.6%
37.6%
39.2% 36.8%
3.5%
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
2012 2013 2014 2015 2016
AN IMPRESSIVE VALUE CREATION TRACK RECORD
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Net current cash flow per share (€)
Loan-To-Value
Over the past 4 years, Klépierre has delivered 3.8% cash flow CAGR…
… while significantly deleveraging the company and conducting a major portfolio transformation
3.8% CAGR
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O P E R AT I N G P E R F O R M A N C E
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RETAILER SALES +1.6%
A balanced geographical mix
January through November 2016, retailer sales outperformed the national indices2 by • 150 bps in France • 130 bps in Italy • 520 bps in Denmark
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1 Retailer sales performance for 2016 compared to full-year 2015. Like-for-like excludes the impact of asset sales and acquisitions. 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 1.3% over the first 11 months. In Italy, the retail index ISTAT was up +0.1%. In Denmark, the retail sales index was down 2%.
FRANCE BELGIUM
+0.2%
GERMANY
+0.8%
IBERIA
+2.4% ITALY
+0.9%
CEE AND TURKEY
+5.8%
DENMARK
+2.5%
NORWAY
+2.3% SWEDEN
+3.4%
2 0 1 6 L I K E - F O R - L I K E C H A N G E I N R E T A I L E R S A L E S 1
2013 2014 2015 2016
NET RENTAL INCOME +3.5% LFL, OUTPERFORMING INDEXATION BY 320 bps
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79% of net rental income generated by France, Italy, Scandinavia and Iberia
1 Like-for-like excludes the contribution of new spaces (acquisitions, new centers, and extensions), spaces being restructured, disposals completed since January 2015, and foreign exchange impacts.
NRI change (LfL)1 2016 vs. 2015
Average impact of index-linked rental adjustments
France-Belgium 3.0% -0.1%
Italy 2.7% 0.1%
Scandinavia 5.5% 1.4%
Iberia 5.3% 0.2%
CEE and Turkey 5.6% 0.8%
The Netherlands -5.3% 0.6%
Germany -0.2% 0.0%
Shopping centers 3.5% 0.3%
Net rental income like-for-like1 growth above indexation (bps)
110
250
300 320
AN EXCEPTIONAL YEAR FOR RETAIL FIRST
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Reversion2 by region
France-Belgium 10.9%
Italy 16.7%
Scandinavia 10.1%
Iberia 20.0%
CEE and Turkey 21.7%
The Netherlands 7.2%
Germany -4.9%
TOTAL 13.4%
1,789 leases signed in 2016
€29.0 M of additional
annualized MGR 1
13.4% average reversion
3.5% EPRA vacancy rate (-30bps)
FY 2016 KPIs
R E T A I L F I R S T
1 Minimum Guaranteed Rents. 2 Reversion calculated on the basis of Minimum Guaranteed Rents for renewed and relet spaces.
ACCELERATING “RIGHTSIZING”: A NEW RECORD
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38,290 additional sq.m. in our shopping centers
24 deals signed with Inditex 9 deals signed with H&M
Average size: 2,819 sq.m. for H&M stores 3,003 sq.m. for Zara stores 78% of these leases include a store extension
R E T A I L F I R S T
RIGHTSIZING INCREASES SALES
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+49%
R E T A I L F I R S T
1 Junior anchors in the fashion segment having expanded their store size to at least 1,500 sq.m. Calculation based on a YoY change pre and post rightsizing for a selected period of time.
Average sales increase for rightsized stores1
MAJOR LEASING SUCCESSES IN ALL GEOGRAPHIES
Zara Romagna 3,996 sq.m. Porta di Roma 3,367 sq.m. Dresden 3,272 sq.m. Grenoble 3,205 sq.m. Duisburg 2,955 sq.m. Akmerkez 2,106 sq.m. Ecully 2,079 sq.m.
2 0
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Bershka Créteil Soleil Grenoble Hoog Catharijne Pescara Val d’Europe
Stradivarius Hoog Catharijne Novy Smichov Pescara Romagna
Pull & Bear Plenilunio Principe Pio Romagna
Oysho Porta Di Roma Val d’Europe
Zara Home Porta di Roma Hoog Catharijne
H&M Emporia 3,392 sq.m. Val d’Europe 3,282 sq.m. Marieberg 3,261 sq.m. Metz 3,221 sq.m. Créteil Soleil 3,180 sq.m. Kupolen 2,864 sq.m. Noisy Arcades 2,336 sq.m. Anatolium 2,219 sq.m. Valenciennes 1,620 sq.m.
R E T A I L F I R S T
BRANDS CREATING DIFFERENTIATION IN OUR SHOPPING CENTERS
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RITUALS 5 leases NYX 11 leases JD SPORT 5 leases
R E T A I L F I R S T
Large-scale and fast deployment of trendy brands
BESTSELLER 16 leases PANDORA 9 leases CALZEDONIA 15 leases
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ACCELERATING CLUBSTORE®
12
2013-2016 IN 2017
Clubstore® represents Klépierre’s “sense of hospitality” and aims to improve dwell time and customer journey
Main deployments in 2016: Porta di Roma, Jaude, Colombia, Bourse
8
CLUBSTORE®
C L U B S T O R E ®
CLUBSTORE® IN PORTA DI ROMA
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Implementation following the major retenanting campaign
+42%2
Zara sales +5%1
Total retailer sales
1 Since Clubstore® implementation (September 2016 – December 2016). 2 June-Dec. 2016 vs June-Dec. 2015.
C L U B S T O R E ®
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GOOD CHOICES® TO IMPROVE OUR ENVIRONMENTAL FOOTPRINT Ahead of ambitious objectives
Energy performance
Target: -25% in 2020
in kWh/visit, vs. 2013
Carbon emissions
1 Like-for-like pro forma: includes Corio as if the Corio acquisition had occurred on January 1, 2013.
G O O D C H O I C E S ®
0.68 0.61
0.58 0.56 0.51
2013 2014 2015 2016 2017 2018 2019 2020
166 155
148 142
2013 2014 2015 2016 2017 2018 2019 2020
kWh/visit Target
in 3 years (2013-2016)1
-17% gCO2e/visit Target
in 3 years (2013-2016)
-14%
Target: -30% in 2020
in gCO2e/visit, vs. 2013
116
GOOD CHOICES® TO IMPROVE OUR ENVIRONMENTAL FOOTPRINT
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Ahead of ambitious objectives
Waste efficiency
Target: 90% in 2020
of waste recovered in 2016
75% Certified assets
Target: 90% in 2020
assets certified in 2016
81
56% 59%
63%
75% 75% 90%
2012 2013 2014 2015 2016 2017 2018 2019 2020
% recovered Target
23%
35%
51%
65% 65% 90%
2012 2013 2014 2015 2016 2017 2018 2019 2020
% of portfolio certified Target
G O O D C H O I C E S ®
UNDISPUTED SUSTAINABILITY LEADERSHIP IN EUROPE
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GOLD AWARD 1 of only 5 companies receiving it for the fifth year in a row
#2 Retail global player – listed
2011 2016
49
67 78
88 91
#1 Global “real estate” sector leader
2011 2016
63
74 82
83 83
2011 2016
57
72 90
99 B-
A list
CLIMATE CHANGE Klépierre enters the CDP A list
G O O D C H O I C E S ®
A NEW “LET’S PLAY®” EUROPEAN CAMPAIGN UNVEILED
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European roll-out: 120 shopping centers, 14 countries vs 40 in the previous campaign
A new visual identity, more premium & consistent
Let’s Play® repositions our malls around “retailtainment”
The DNA of the new campaign is based on in-depth social listening
L E T ’ S P L A Y ®
ENGAGING COMMUNITIES THROUGH HIGHLY RESPONSIVE MALLS
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“Just ask” is about optimizing our customer care (answering clients’ requests in less than 1 hour via Facebook)
Questions asked by web users
Number of web users considering this service to be useful 86%
x3
Share of web users considering Facebook as their favorite way to dialog with the shopping center 55%
L E T ’ S P L A Y ®
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F I N A N C I A L P E R F O R M A N C E
3 0
2016: ALL P&L ITEMS CONTRIBUTED TO 6.8% CASH FLOW GROWTH
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Net Rental Income +1.3%
Solid LfL rental growth (+3.3%) and contribution from acquisitions (+2.0%)…
… offsetting disposals’ dilution (-3.6%)
Operating Cash Flow +3.2%
Further reduction in G&A costs (-€21 M)
Largely thanks to Corio synergies
Net current Cash Flow per share +6.8%
Lower financial charges, thanks to lower net debt (-€244 M) and cost of debt (-40 bps to 2.1%)
3 1
€ €
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3 2
12/31/2015 Net rental income
Disposals Acquisitions Reversion & indexation
12/31/2016 Net rental income
excl. Forex
Forex 12/31/2016 Net rental income
NET RENTAL INCOME UP 3.3% LIKE-FOR-LIKE Total share, €M
1,069.6
-38.7
+21.8 +32.6 1,085.3 1,083.4
-1.9
+3.3% o/w Oslo City (Norway) +€17.8 M Plenilunio (Spain) +€5 M
o/w Dutch portfolio -€28.2 M
OPERATING AND FINANCIAL COSTS EFFICIENCY
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General & Administrative (G&A) costs reduction Cost of debt
In 2016, G&A costs declined by €21 M Net cost of debt to reach circa 2.0% in 2017
3.5%
3.0%
2.5% 2.1%
2013 2014 2015 2016 2015 2016
Payroll (€ M) General expenses (€ M)
73
130
62
120 3.0x
3.6x
4.5x
5.2x
Interest Coverage Ratio Cost of debt
PORTFOLIO AND BALANCE SHEET UPGRADING
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Portfolio upgrading
Klépierre aims to gradually enhance its portfolio quality …
Conservative financial policy
Asset revaluation
… to further increase the portfolio value.
€685 M in disposals since early 2016
€244 M Net debt reduction (LTV of 36.8%)
+4.5% LfL Portfolio value increase
… without increasing the net debt level…
CONTINUOUS STREAMLINING OF THE PORTFOLIO
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Scandinavia1
€429 M Åsane Torp
Lillestrøm
Spain1
€61 M Sexta Avenida
Ruta de la Plata Espacio Torrelodones
€685 M1
worth of disposals since early 2016
Other shopping centers1
€61 M France
Hungary Italy
Other assets1
€134 M Pantin
Buffalo Grill (8 assets) …
1 Disposals (total share, excluding duties) since January 1st , 2016.
VALUE CREATION THROUGH M&A: PLENILUNIO
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+28%1 reversion (42 leases)
€49.7 M1 value increase
+15.2%1 retailer sales
€
Madrid (acquired in March 2015)
1 Since acquisition.
SHOPPING CENTER PORTFOLIO VALUE +4.7% LFL IN 2016
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Portfolio value Total Share1
15,972 13,821
22,127 22,817
-0.1% 1.7%
5.1% 4.5%
2013 2014 2015 20160
5,000
10,000
15,000
20,000
25,000
Shopping centers valuation
EPRA NIY of the shopping center portfolio (12/31/2016): 4.9% including duties (20 bps compression over 12 months)
Portfolio value Like-for-Like value change
1 Excluding duties, including development and shopping centers accounted under equity method. 2 For Scandinavia and Turkey change is indicated on a constant portfolio and forex basis.
% of the portfolio ∆ 12 month
like-for-like2 2016
EPRA NIY
France Belgium 39% 4.2% 4.4%
Italy 16% 3.6% 5.5%
Scandinavia 18% 8.1% 4.5%
Iberia 8% 8.4% 5.0%
CEE & Turkey 8% 0.9% 6.8%
The Netherlands 5% 3.9% 5.2%
Germany 5% 0.6% 4.5%
TOTAL 100% 4.7% 4.9%
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12/31/2015 Dividend Cash flow Like-for-like asset
revaluation
Non LfL 12/31/2016 Forex and others
12/31/2016
EPRA NAV OF €36.7, +5.9% OVER 12 MONTHS
311,457,5301 311,827,6111
1 Number of shares end of period (excl. treasury shares).
In euros per share 12/31/2015 06/30/2016 12/31/2016 Change (12 months)
EPRA NAV 34.7 34.8 36.7 5.9%
EPRA NNNAV 33.2 32.9 35.2 5.8%
12-month change in EPRA NNNAV per share
+2.3
-1.7
+2.3
-0.4
35.7
-0.5 35.2
33.2
CONTINUOUS IMPROVEMENT IN NET DEBT POSITION
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Net debt / EBITDA evolution
10.3x
9.2x
9.1x 8.7x
H1-15 H2-15 H1-16 H2-168,000
8,500
9,000
9,500
Net debt decreased by €244 M in 2016
Loan-to-Value evolution
Loan to Value stand at 36.8%, down 240 bps YoY
43.9%
36.8% 35%
40%
45%
H2-13 H1-14 H2-14 H1-15 H2-15 H1-16 H2-16
Net debt expected to be flat or lower in 2017
Net debt Net debt / EBITDA
Target
SOLID BALANCE SHEET
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4 0
Debt Maturity Schedule (% of authorized debt)
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028+
Undrawn Drawn
11%
Extension of the debt duration Average debt duration standing at 6.0 years compared to 5.5 in 2015
Liquidity remains high Over €2.6 Bn with an average duration of 5.2 years, covering 2017, 2018 and 2019 debt repayment
5% 7%
13%
28%
2%
8% 9%
3% 5%
1%
9%
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4 1
1.9 1.8 1.8
2.1 2.0 2.0
2.2 2.2 2.3
2016 2017 2018 2019
LOW COST OF DEBT LOCKED IN
Net cost of debt (%) change under 3 interest rates scenarios1
+200 bps
+100 bps
Current interest rate
1 Assuming the Group’s debt and average credit spreads remain stable until 2019 and considering the interest-rates curves of the currencies used by the Group (EUR, NOK, SEK & DKK) at December 31, 2016.
If interest rates increased by 200 bps, Klépierre’s cost of debt would rise by just 20 bps by 2019 (vs 2016)
2.1
Increase in the hedging rate
81%
92% 83%
77%
YE 2016 2017* 2018* 2019** average
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4 2
2012 2013 2014 2015 2016
PROPOSED 2016 DIVIDEND: €1.82 PER SHARE, +7.1% Dividend (in euros per share) evolution
SIIC Non-SIIC
1.37
0.13
79%
1.50
77% 81% 79% 79%
1 Dividend per share x number of shares (including treasury shares) / Net current cash flow (group share). 2 Submitted to a vote of the shareholders at their April 18, 2017 general meeting.
PAYOUT1
Proposed dividend: €1.822 per share (77% SIIC), to be paid on April 25, 2017 (ex-date: April 21, 2017)
0.93
0.62
0.50
1.20
1.41
0.41
1.822
1.55 1.60
1.70
5.0% CAGR
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4 3
0 4
D E V E L O P M E N T P I P E L I N E
A DEVELOPMENT PIPELINE FOCUSED ON EXTENSIONS
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Development pipeline Main projects in the committed pipeline
Extension: 75% Greenfield: 25%
Committed1: €706 M Controlled2: €1,095 M Identified3: €1,509 M
€3.3 Bn
1 Projects that are in the process of completion, for which Klépierre controls the land and has obtained the necessary administrative approvals and permits. 2 Projects that are in the process of advanced review, for which Klépierre has control over the land (acquisition made or under offer, contingent on obtaining the necessary administrative approvals and permits). 3 Projects that are in the process of being put together and negotiated.
VAL D’EUROPE
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7.7% targeted YOC1 €102 M investment
91% pre-leasing rate Opening: April 2017
Paris area (France) 17,000 sq.m. extension
1 Yield on cost: based on targeted NRI with full occupancy and excluding all lease incentives (when applicable), divided by the estimated cost of the project including fit out (when applicable) and excluding lease step-ups (when applicable), internal development fees and financial costs.
VAL D’EUROPE – A NEW BOOST FOR RETAILER SALES IN 2017
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An extension welcoming major brands Together with Clubstore® implementation
HOOG CATHARIJNE
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To become Klépierre’s #1 asset #1 mall in the Netherlands1 #5 mall in Continental Europe1
6.3% targeted YOC3
Phase 2 Opening: from April to November 2017
Utrecht 77,000 sq.m.
85% pre-leased2
1 In terms of footfall. 2 For stores opening in April 2017. 3 Yield on cost for Phase 2&3 (phase 3 to open in 2019). See details on slide 45.
HOOG CATHARIJNE LEADING AND DISTINCTIVE RETAILERS
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1,456 sq.m.
711 sq.m. 1,058 sq.m.
1,083 sq.m. 2,610 sq.m.
1,180 sq.m.
3,211 sq.m. 3,505 sq.m.
PRADO
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6.5% targeted YOC1
60% pre-leasing rate Opening: Q1 2018
Marseille (France) New shopping center: 23,000 sq.m.
1 Yield on cost (see details on slide 45).
CONTROLLED PIPELINE
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1 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.
CRÉTEIL SOLEIL Paris area, France
Estimated cost €67 M
Opening H1 2019
L’ESPLANADE Brussels area, Belgium
Estimated cost €131 M
Opening H1 2021
GRAN RENO Bologna, Italy
Estimated cost €122 M
Opening H2 2020
OKERN Oslo, Norway
Estimated cost1 €95 M
Opening H2 2021
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O U T L O O K
5 1
2017 GUIDANCE
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Net current cash flow per share €2.35 – €2.40 Assuming stable or lower net debt
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A G E N D A
A p r i l 1 8 , 2 0 1 7 General meeting of shareholders
A p r i l 2 1 , 2 0 1 7 Dividend ex-date
A p r i l 2 5 , 2 0 1 7 Dividend payment
A p r i l 2 6 , 2 0 1 7 2017 1 st quarter revenues 1
5 3
1 Press release after market close.
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A P P E N D I C E S
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DEVELOPMENT PIPELINE
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Development project Country City Type Floor area
(sq.m.) Expected
opening date
Klépierre equity
interest Estimated cost
1(€M) Cost to date
Targeted yield on cost
2(€M)
Val d'Europe France Paris region extension 17,000 Q2 2017 55.0% 102 78 7.7%
Hoog Catharijne Phases 2 & 3 The Netherlands Utrecht extension-refurbishment 61,982 2017-2019 100.0% 426 227 6.3%
Other projects (incl. Prado) 33,406 178 88 7.2%
TOTAL COMMITTED PROJECTS 112,388 706 393 6.7%
Créteil Soleil - Phase 1 France Paris region extension-refurbishment 10,300 H1 2019 80.0% 67 3
Gran Reno Italy Bologna extension 15,900 H2 2020 100.0% 122 1
Bègles Rives d'Arcins France Bordeaux extension 25,080 H2 2020 52.0% 38 5
Grand Portet France Toulouse region extension-refurbishment 8,000 H2 2021 83.0% 65 8
Grand Littoral France Marseille extension 12,000 H1 2020 100.0% 30 -
Grenoble Grand Place France Grenoble extension 16,682 H2 2019 100.0% 46 -
Odysseum France Montpellier extension 15,900 H1 2020 100.0% 36 -
L'esplanade Belgium Brussels region extension 19,475 H1 2021 100.0% 131 17
Vitrolles France Marseille region extension 18,050 H2 2020 83.0% 80 -
Val d'Europe France Paris region extension 10,620 H2 2020 55.0% 51 -
Lonato3 Italy Lombardy extension 15,000 H2 2020 50.0% 30 -
Le Gru Italy Turin extension 12,000 H2 2021 100.0% 80 -
Maremagnum Spain Barcelona extension 8,000 H2 2020 100.0% 45 0
Økernsenteret3 Norway Oslo redevelopment 53,220 H2 2021 28.1% 95 6
Viva Denmark Odense new development 48,500 H2 2020 56.1% 176 39
Other projects 2,520 5 -
TOTAL CONTROLLED PROJECTS 291,247 1,095 79
TOTAL IDENTIFIED PROJECTS 262,260 1,509 5
TOTAL 665,895 3,309 477 1 Estimated cost as of December 31, 2016, including fit out (when applicable) and excluding lease step-ups (when applicable), internal development fees and financial costs. 2 Targeted yield on cost as of December 31, 2016, based on targeted NRI with full occupancy and excluding all lease incentives (when applicable), divided by the estimated cost of the project as defined above. 3 Assets consolidated under equity method. For these projects estimated cost and cost to date are reported for Klépierre share of equity. Floor areas are the total area of the projects.
2016 OPERATING HIGHLIGHTS
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RETAILER SALES NET RENTAL INCOME LEASING ACTIVITY
Change LfL1 Change LfL 1
excl. extensions 2016
Current (€M) Change LfL Reversion
(%) OCR
(%) EPRA Vacancy
rate (%)
France-Belgium +0.2% +0.2% 388.0 +3.0% +10.9% 12.4% 3.2% France +0.2% +0.2% 372.3 +2.9% 3.3%
Belgium +0.4% +0.4% 15.7 +5.2% 0.5% Italy +0.9% +0.9% 189.8 +2.7% +16.7% 11.2% 1.7% Scandinavia +2.7% +2.7% 180.3 +5.5% +10.1% 10.8% 3.5%
Norway +2.3% +2.3% 66.4 +2.7% 2.6% Sweden +3.4% +3.0% 61.6 +6.4% 2.7%
Denmark +2.5% +2.5% 52.3 +7.6% 5.7% Netherlands - - 45.5 -5.3% +7.2% - 5.6% Iberia +2.4% +2.4% 98.4 +5.3% +20.0% 13.5% 4.9%
Spain +2.6% +2.6% 79.4 +5.7% 3.8% Portugal +2.2% +2.2% 19.0 +3.9% 8.1%
Germany +0.8% -0.6% 42.0 -0.2% -4.9% 11.7% 6.4% CEE and Turkey +5.8% +5.8% 110.1 +5.6% +21.7% 12.8% 5.7%
Poland +3.2% +3.2% 32.1 +1.8% 1.3% Hungary +10.0% +10.0% 19.2 +15.4% 4.6%
Czech Republic +5.9% +5.9% 26.7 +12.4% 0.7% Turkey +7.5% +7.5% 30.1 -1.5% 9.7%
TOTAL SHOPPING CENTERS +1.6% +1.5% 1,054.1 +3.5% +13.4% 11.9% 3.5% 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.
PROFIT & LOSS (€M)
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TOTAL SHARE €M 12/31/2016 12/31/2015 Gross rental income 1,214.0 1,208.4 Rental & building expenses -130.6 -138.8 NET RENTAL INCOME 1,083.4 1,069.6 Management, administrative and related income 86.5 86.8 Other operating revenue 18.4 13.9 Survey & research costs -2.8 -2.8 Payroll expenses -135.8 -154.9 Other general expenses -59.0 -71.7 EBITDA 990.6 940.9 Depreciations and impairment allowance on investment property -14.8 -17.2 Provisions -5.2 -0.3 Proceeds of sales 23.5 -1.1 Goodwill depreciation - -922.6 Change in value of investment property 828.8 883.3 OPERATING INCOME 1,822.9 882.9 Net cost of debt -197.7 -217.0 Change in the fair value of financial instruments -12.1 -30.6 Share in earnings of equity method investees 89.5 97.5 PROFIT BEFORE TAXES 1,702.6 732.9 Tax due -29.0 -32.9 Deferred taxes -196.6 -171.7 NET INCOME 1,476.9 528.3
GROUP SHARE 12/31/2016 12/31/2015
1,045.4 1,040.6 -111.9 -116.9 933.4 923.7
82.2 80.0 16.6 11.6 -2.8 -2.8
-127.9 -144.2 -55.8 -66.9
845.8 801.5 -13.4 -15.4 -5.3 0.2 7.8 -2.7
- -922.6 646.6 711.6
1,481.4 572.6 -180.7 -196.6
-12.1 -30.5 84.5 100.2
1,373.0 445.7 -26.3 -29.5
-155.5 -141.5 1,191.2 274.6
CASH FLOW STATEMENT (€M)
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TOTAL SHARE GROUP SHARE 12/31/2016 12/31/2015 12/31/2016 12/31/2015
GROSS RENTAL INCOME 1,214.0 1,208.4 1,045.4 1,040.6 Rental & building expenses -130.6 -138.8 -111.9 -116.0 NET RENTAL INCOME 1,083.4 1,070.4 933.4 924.5 Management and other income 104.8 100.7 98.8 91.6 Restatement deferred incomes -7.2 - -7.2 - G&A expenses -197.6 -229.4 -186.5 -213.8 Restatement payroll and deferred expenses 15.5 26.4 15.2 26.6 Net cost of debt -209.8 -247.6 -192.9 -227.1 Restatement financial allowance & financial restructuring 28.3 33.8 28.2 35.5 Share in earnings of equity method investees 61.0 62.6 55.9 56.9 Current tax expenses -26.6 -32.8 -23.9 -29.5 NET CURRENT CASH FLOW 851.6 784.2 721.1 664.6
Restatement payroll and deferred expenses -7.9 -4.2
Restatement amortization allowances and provisions for contingencies and losses -18.8 -15.2
EPRA EARNINGS 694.4 645.2
Per share NET CURRENT CASH FLOW PER SHARE 2.31 2.17
EPRA EARNINGS PER SHARE 2.23 2.10 Average number of shares excluding treasury shares. 311,736,861 306,803,561
VALUATION OF THE PORTFOLIO
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(€M, TOTAL SHARE, EXCL. DUTIES) 12/31/2016 % of total portfolio 12/31/2015 12-month change
Current 12-month change
Like-for-like1
France 8,420 36.9% 8,032 +4.8% +4.2% Belgium 385 1.7% 371 +3.7% +3.9% France-Belgium 8,805 38.6% 8,403 +4.8% +4.2% Italy 3,707 16.2% 3,606 +2.8% +3.6% Norway 1,595 7.0% 1,510 +5.6% +7.3% Sweden 1,316 5.8% 1,389 -5.2% +11.4% Denmark 1,097 4.8% 1,057 +3.8% +5.7% Scandinavia 4,008 17.6% 3,955 +1.3% +8.1% Spain 1,485 6.5% 1,461 +1.6% +9.3% Portugal 346 1.5% 324 +6.9% +4.7% Iberia 1,831 8.0% 1,785 +2.6% +8.4% Poland 423 1.9% 439 -3.5% -3.7% Hungary 227 1.0% 216 +4.8% +7.9% Czech Republic 509 2.2% 424 +19.9% +19.9% Turkey 563 2.5% 617 -8.9% -11.5% CEE & Turkey 1,757 7.7% 1,736 +1.3% +0.9% Netherlands 1,234 5.4% 1,139 +8.3% +3.9%
Germany 1,074 4.7% 1,068 +0.6% +0.6%
TOTAL SHOPPING CENTERS 22,418 98.3% 21,693 +3.3% +4.7%
Other activities 399 1.7% 434 -8.1% -4.0%
TOTAL 22,817 100.0% 22.127 +3.1% +4.5% 1 Excludes the impact of new centers opened, acquisitions, asset sales completed since January 1, 2016, extension capex and foreign exchange impacts.
VALUATION OF THE PORTFOLIO
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(€M, GROUP SHARE, EXCL. DUTIES) 12/31/2016 % of total portfolio 12/31/2015 12-month change
Current 12-month change
Like-for-like1
France 6,880 35.5% 6,631 +3.8% +3.7% Belgium 385 2.0% 371 +3.7% +3.9% France-Belgium 7,265 37.5% 7,002 +3.8% +3.7% Italy 3,665 18.9% 3,560 +3.0% +3.7% Norway 895 4.6% 847 +5.6% +7.3% Sweden 738 3.8% 779 -5.2% +11.4% Denmark 616 3.2% 593 +3.8% +5.7% Scandinavia 2,249 11.6% 2,219 +1.3% +8.1% Spain 1,444 7.5% 1,423 +1.5% +9.3% Portugal 346 1.8% 324 +6.9% +4.7% Iberia 1,791 9.3% 1,747 +2.5% +8.4% Poland 423 2.2% 439 -3.5% -3.7% Hungary 227 1.2% 216 +4.8% +7.9% Czech Republic 509 2.6% 424 +19.9% +19.9% Turkey 540 2.8% 593 -9.0% -11.2% CEE & Turkey 1,732 8.9% 1,708 +1.4% +1.2% Netherlands 1,234 6.4% 1,139 +8.3% +3.9%
Germany 1,021 5.3% 1,014 +0.6% +0.6%
TOTAL SHOPPING CENTERS 18,956 97.9% 18,390 +3.1% +4.3%
Other activities 399 2.1% 434 -8.1% -4.0%
TOTAL 19,354 100.0% 18,824 +2.8% +4.1% 1 Excludes the impact of new centers opened, acquisitions, asset sales completed since January 1, 2016 extension capex and foreign exchange impacts.
SHOPPING CENTER VALUATION
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(GROUP SHARE – EXCLUDING DUTIES – IN €M)
12/31/2015 Disposals Non LFL portfolio
LFL Portfolio
12/31/2016 excl. Forex
Forex 12/31/2016
18,824
-324
+20
+712 19,325 19,354 +29
+93
LFL Capex
SHOPPING CENTER PORTFOLIO VALUE UP 1.8%
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OVER 6 MONTHS ON A LIKE-FOR-LIKE BASIS
€M, excluding duties 12/31/2016 06/30/2016 12/31/2016 06/30/2016 ∆ 6-month
like-for-like1
France-Belgium 8,805 8,558 7,265 7,102 +2.1%
Italy 3,707 3,603 3,665 3,561 +1.5%
Scandinavia 4,008 4,183 2,249 2,346 +2.1%
Iberia 1,831 1,806 1,791 1,767 +6.0%
CEE & Turkey 1,757 1,762 1,732 1,735 -0.7%
Netherlands 1,234 1,181 1,234 1,181 +1.1%
Germany 1,074 1,092 1,021 1,037 -2.2%
TOTAL SHOPPING CENTERS 22,418 22,184 18,956 18,730 +1.8%
Other activities 399 431 399 431 -3.4%
TOTAL 22,817 22,615 19,354 19,161 +1.7%
of which Equity accounted Investees 1,425 1,571 1,347 1,433
1 Excludes the impact of new centers opened, acquisitions, asset sales completed since July 1, 2016, extension capex and foreign exchange impacts.
VALUATION OF THE PORTFOLIO
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(€M, TOTAL SHARE, INCL. DUTIES) 12/31/2016 % of total portfolio 12/31/2015
France 8,811 37.6% 8,397
Belgium 385 1.6% 371
France-Belgium 9,196 39.3% 8,769 Italy 3,775 16.1% 3,646 Norway 1,595 6.8% 1,510
Sweden 1,316 5.6% 1,389
Denmark 1,097 4.7% 1,057
Scandinavia 4,008 17.1% 3,955 Spain 1,527 6.5% 1,469
Portugal 346 1.5% 324
Iberia 1,874 8.0% 1,793 Poland 424 1.8% 439
Hungary 230 1.0% 220
Czech Republic 509 2.2% 424
Turkey 574 2.5% 633
CEE & Turkey 1,773 7.6% 1,755 Netherlands 1,290 5.5% 1,169 Germany 1,074 4.6% 1,068 TOTAL SHOPPING CENTERS 22,990 98.2% 22,154 Other activities 426 1.8% 464 TOTAL 23,416 100.0% 22,618
VALUATION ASSUMPTIONS USED BY APPRAISERS
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Discount rate Exit rate 10Y Gvt bonds
2016 2016 vs 2013
2016 2016 vs 2013
2016 2016 vs 2013
Scandinavia 7.1% -100 bps 4.9% -140 bps 0.8% -140 bps
Italy 7.0% -70 bps 5.8% -110 bps 1.5% -280 bps
Iberia 7.8% -180 bps 5.8% -190 bps 1.4% -320 bps
2013 2016
Discount rate Exit rate Government bonds 10Y
-50 bps
-70 bps
-170 bps
6.7% 6.2%
5.4%
4.7%
2.2%
0.5%
Other main countries
Government bond yield contraction between 2013 and 2016 exceeded the compression of discount rates and exit rates used by property appraisers
France
