Company presentation SEB

Oslo, 1. September 2016

STEEN & STRØM

39 bn NOK property value in Scandinavia

2

Norway

13 shopping centers

50 million visitors

13.0bn NOK in shopping center turnover

990 stores

347 800 sq.m. leasable area

Property value: 16.2bn NOK (41%)

Sweden

6 shopping centers

31 million visitors

8.3bn SEK in shopping center turnover

565 stores

224 700 sq.m. leasable area

Property value: 14.3bn SEK (37%)

Denmark

3 shopping centers

22 million visitors

3.5bn DKK in shopping center turnover

310 stores

130 300 sq.m. leasable area

Property value: 8.5bn DKK (22%)

Ownership and organization

3

Long-term ownership

S&S acquired in 2008 by Klépierre (56.1%) and APG (43.9%)

Klépierre A-/stable (S&P)

‒ Owned 20.3% by Simon Group A/stable (S&P)

‒ S&S ~18% of Klépierre portfolio

Change of Control (A- official rating)

Strong integration with Klépierre

Direct operational reporting

Integrated IT and management systems

Financial policy

Equity contribution of 1.5bn NOK in 2011 and 1.3bn NOK in 2015

Klépierre/APG hold 3/2 seats on BoD

179 shopping centres

GAV of ~22bn EUR

Market cap of ~13bn EUR

Owned 20.3% by the world’s largest shopping center owner – Simon Property Group A/Stable (S&P)

205bn EUR under management

>20bn EUR in real estate investments

Clearly defined operating strategy

4

Focus on ownership, development and management of attractive shopping centers located in densely populated areas in Scandinavia

Securing the right balance between stabilized assets and development projects

Development risk is limited due to pre-let requirements, normally turn-key construction contracts and increased ROI target

Asset rotation – active divestment and development strategy with focus on large centers in urban areas

“Seek to optimize the total portfolio of leading shopping centers and maximize the profitability of each property”

“We enrich modern shopping”

Existing centers Target investments areas

2Q 2016

5

2Q 15 2Q 16 % change

Gross rental income 762 924 21,3%

Net rental income 676 866 28,1%

Change in fair value 447 2 043

Yield 5.13% 5.00%

EBITDA 779 2 819 261,9%

Net cost of debt -277 -123

Average interest rate 2.6% 2.5%

Investment properties 37 771 38 980

MNOK

Strong portfolio

Good reversion on existing leases

Continual focus on opex and rebilling

Trimmed organization

Low interest cost

Lower investment pace

Portfolio developing positively in 2016

6

Change in net rental income Like-for-like Q1 2016

Change in retailers’ sale YTD June 2016

Change in portfolio value First six months 2016

* Figures are like-for-like based on current portfolio

2,8%

6,7%6,3%

Norway Sweden Denmark

5,1%

6,6%

5,6%

Norway Sweden Denmark

2.0%

4.0%4.2%

Norway Sweden Denmark

7

Executing the Strategy: Asset Rotation

0

200

400

600

800

1000

1200

1400

1600

1800

0 0,5 1 1,5

Center Divested

Average Remaining Portfolio

Divesting smaller rural shopping centers…

8

Center revenue, MNOK Sale of four Norwegian centers to Sektor

Sale of five Swedish centers to Thon

~2bn NOK

~3.3bn NOK

… and investing in large urban areas

9

10

Financial Policy and

Funding

62%60%

55% 56%53%

46%42% 41%

2,009 2010 2011 2012 2013 2014 2015 Q2-16

Steering targets continue to strengthen

11

* Operating result before valuation changes and extraordinary items. Net cost of debt ex currency translation effects

Net loan-to-value Net interest-bearing debt / property value

Interest coverage EBITDA* / net financial expenses

1,8x2,0x 1,9x 2,0x 2,0x

2,5x

3,4x

2 009 2010 2011 2012 2013 2014 2015

Klépierre / APG acquires SST in July 2008

Sale of 4 Norwegian centers

Sale of 5 Swedish centers

Acquisition of Oslo City

41%

40%

39%

LTV Q2-16 FCF Q2->Q4 2016 Asset disposals

Further improvement in LTV expected

12

Net loan-to-value Net interest-bearing debt / property value

FCF ~200 MNOK after capex and dividend for debt repayment

Planned asset disposals of >1.5bn NOK w/ debt repayment

0%

42%

100%

91%

Certificates Bond Realkredit /Nykredit

Bank loans

Diversified funding

13

Funding mix % of total gross outstanding debt (ex credit lines)

Share of secured debt by funding type % secured debt of total

7 %

25 %

38 %

17 %

9 %

3 % 1 %

Certificates

Bonds

Realkredit

Nykredit

Handelsbanken (bank)

Danske Bank (bank)

DNB (bank)

Total gross external drawn debt ~16.6bn NOK

In addition unused credit lines ~0.9bn NOK

48% unsecured NOK debt; 26% on group level

Unpledged properties of 5.4bn NOK that are 100% owned

1.74bn NOK secured bonds to be refinanced as unsecured

Actively managed debt maturity profile

14

0 %

5 %

10 %

15 %

20 %

25 %

30 %

0

1 000

2 000

3 000

4 000

5 000

6 000

< 1yr 1-2yr 2-3yr 3-4yr 4-5yr 5-6yr 6-7yr 7-8yr 8-9yr >9yr

Certificates Bonds Realkredit Nykredit Bank loans % of total (ex CD's) % limit any single yearMNOK

Average maturity = 9.3yrs (10.0 yrs excluding CD's)

Debt maturity profile Amount in MNOK and % of total outstanding debt maturing per year

Hedging currently 44% of rate exposure

15

Maturity profile of outstanding hedges Outstanding hedges in MNOK and % of total debt

44 % 44 %

37 %

29 %28 %

15 %

12 %

2 %0 % 0 %

0 %

5 %

10 %

15 %

20 %

25 %

30 %

35 %

40 %

45 %

50 %

-

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

30.06.2016 2016 2017 2018 2019 2020 2021 2022 2023 2024

NOK SEK DKK DKK fixed rate loans NOK fixed rate loans Hedging ratio

MNOK

Average maturity = 3.6 yrs

Peer comparison

16

Steen & Strøm’s LTV below both Olav Thon Eiendomsselskap and Entra

Further improvement in ICR and net debt to EBITDA with Oslo City contribution in 2016

(Figures in NOK Last Twelve Months Q1-16) Steen & Strøm Olav Thon Eiendomsselskap Entra

EBITDA 1,278 1,970 1,453

Cost of Debt -371 -651 -562

Total Assets 39,366 47,315 34,063

Investment Property Incl. Associates and JV’s 37,900 45,334 31,947

Net Debt 16,100 19,445 14,515

Equity 17,595 18,389 13,575

Key Credit Metrics

Loan to Value (LTV) 42% 43% 45%

Equity / Total Assets 45% 39% 40%

EBITDA Interest Coverage (ICR) 3.4x 3.0x 2.6x

Net Debt / EBITDA 12.6x 9.9x 10.0x

Net Debt / EBITDA incl. OC* 11.2x

*Including forecast EBITDA for Oslo City

Active participant in bond market

17

* 7-year fixed rate at 2,62%

Ticker Issued Maturity Length Amount (m) Currency Spread / rate Security

SST44 14.09.2012 14.09.2017 5Y 725 NOK 170 Secured

SST32 08.11.2012 18.11.2016 4Y 625 NOK 140 Secured

SST38 26.04.2013 26.04.2017 4Y 390 NOK 130 Secured

SST43 11.11.2013 11.11.2016 3Y 300 NOK 125 Unsecured

SST48 21.02.2014 21.02.2018 4Y 400 NOK 110 Unsecured

SST49 21.02.2014 21.02.2019 5Y 300 NOK 122 Unsecured

SST52 22.05.2014 22.05.2017 3Y 500 NOK 75 Unsecured

SST59 08.12.2014 08.12.2017 3Y 500 SEK 77 Unsecured

SST 08.06.2015 08.06.2022 7Y 400 NOK 79 Unsecured

Outstanding bond issues

First Norwegian real estate company to issue bonds in SEK market

Looking to potentially enter the Swedish CP market

New issues on unsecured basis

Covenants: Equity ratio of 20% and Change-of-control

Key rating considerations

18

Strong business profile Conservative financial risk profile

Market risk

– Generally viewed as low risk industry

– Strong portfolio

– Significant scale within Scandinavia

Cash flow risk

– Diversified tenant base

– Stable rental income and cash flow

– Low vacancy rate

Attractive development portfolio

Management and ownership

– Strong track-record as value creator

– One of the dominant retail players in Scandinavia

– Supportive ownership

Strong rating metrics

Conservative investment strategy

– Lower investment pace

– High pre-letting requirement in new projects

Good liquidity

Long and staggered debt maturity profile

Hedging ~50% of interest rate exposure

Secured debt to pledged asset value ~42%

Appendix: shopping center portfolio

19

Asset Country Currency City

Ownership

share

Net lettable

area (sqm)

Annual

turnover (m)

Annual gross

rent (m)

Annual net

rent (m)

Lillestrøm Torv Norway NOK Lillestrøm 100 % 23 197 548 47,1 42,1

Maxi Norway NOK Hamar 100 % 21 563 716 46,7 41,0

Metro Norway NOK Lørenskog 50 % 53 344 1 169 90,8 78,3

Nordbyen Norway NOK Larvik 50 % 15 868 605 37,7 33,5

Vinterbro Norway NOK Vinterbro 100 % 32 847 1 497 84,7 71,0

Nerstranda Norway NOK Tromsø 100 % 12 735 420 35,3 31,6

Åsane Norway NOK Bergen 49,9% 49 604 1 457 114,2 98,0

Gulskogen Norway NOK Drammen 100 % 38 627 1 589 103,0 100,5

Arkaden Norway NOK Stavanger 100 % 21 431 485 50,4 42,1

Amanda Norway NOK Haugesund 100 % 15 171 1 349 52,9 48,8

Farmandstredet Norway NOK Tønsberg 100 % 41 570 1 418 102,3 94,5

Oslo City Norway NOK Oslo 100 % 21 828 1 874 171,8 161,1

Økern (development property) Norway NOK Oslo 50 % n.a. n.a. 22,6 15,2

Allum Sweden SEK Gothenburg 100 % 50 000 1 952 114,9 100,8

Emporia Sweden SEK Malmö 100 % 77 700 2 745 233,2 203,5

Kupolen Sweden SEK Borlänge 100 % 49 800 1 244 94,3 78,8

Marieberg Sweden SEK Örebro 100 % 32 800 1 455 96,2 81,4

Torp Sweden SEK Uddevalla 100 % 31 400 898 66,7 56,7

Galleria Boulevard Sweden SEK Kristianstad 100 % 21 000 626 37,8 24,6

Field's Denmark DKK Copenhagen 100 % 74 000 1 932 222,3 220,0

Bruun's Denmark DKK Århus 100 % 30 000 1 230 139,0 126,8

Bryggen Denmark DKK Vejle 100 % 21 000 470 36,0 19,5

Steen & Strøm AS Bjørn Tjaum CFO Direct: +47 23 21 35 39 Mobile: +47 97 08 01 85 bjorn.tjaum@steenstrom.com www.steenstrom.com