2015 Half-year Results 24 July 2015 Agenda 01 Introduction and - - PowerPoint PPT Presentation

2015 Half-year Results

24 July 2015

Agenda

01

Introduction and half-year highlights

David Atkins – CEO

02

Financial results

Timon Drakesmith – CFO

03

Portfolio update

David Atkins – CEO

04

Conclusion and Q+A

David Atkins – CEO

2

2015 Half-year highlights

3

(1) Including premium outlets (2) 12 month rolling ERV growth (3) Subject to completion of Bercy 2 and Grand Maine disposals

EPS growth

+13.3%

LfL NRI growth(1) UK Shopping Centre ERV growth(2)

+3.3%

Cost:income ratio reduced to

22.4%

Total capital recycled(3)

£155m +3.0%

Sales uplift at premium outlets

+12%

4 developments completing in 2015

64,900m2

Product Framework delivering operational excellence

4

iconic destinations

Creating an aspirational retail destination at Victoria Gate, Leeds

best@retail

Introduced 5 new international brands to French market

entertaining & exciting

Dwell time +14% at Silverburn following leisure extension

interactive & engaging

PLUS app roll-out complete; 37% offer redemption rate at launch

convenient & easy

Click & collect kiosks in half of UK centres by end of 2015

positive places

LfL electricity consumption reduced by 1.8%

Financial results

Timon Drakesmith - CFO

5

02

Headline results underpinning our growth targets

6

(1) Adjusted profit and adjusted EPS restated from £85.0m and 11.6p respectively to exclude restructuring costs of £2.8m, which were excluded when calculating adjusted earnings figures for 31 December 2014 (2) Valuation for total portfolio including premium outlets at constant currency

Income statement 30 Jun 2015 30 Jun 2014 Change Net rental income (£m)

159.5 146.9 +8.6%

Adjusted profit before tax (£m)

108.2 87.8(1) +23.2%

Adjusted EPS (p)

13.6 12.0(1) +13.3%

Interim dividend (p)

9.5 8.8 +8.0%

Balance sheet 30 Jun 2015 31 Dec 2014 Change Portfolio value (£m)(2)

7,886 7,734 +3.1%

EPRA NAV (pence per share)

668 638 +4.7%

LTV (%)

33 34

• 100bps

Financial results

Positive LfL NRI growth

7

(1) Includes LfL movement of UK other properties (2) Includes Value Retail only as VIA Outlets was acquired in July 2014

1.8% 3.2% 2.3% 2.1% 8.6% 3.0%

1 2 3 4 5 6 7 8 9 10 UK shopping centres UK retail parks France Total exc. Premium

• utlets

Premium outlets Total

LfL NRI growth by sector (%)

Financial results

(1) (1) (2)

Strong PBT growth

8

(1) Movements shown at constant exchange rates (2) Adjusted profit as reported at 30 Jun 2014 including £2.8m restructuring costs (3) Including £2.8m restructuring costs recorded in H1 2014

85.0 108.2 108.2 2.8 7.2 6.5 4.1 3.2 0.7 (1.3)

60 70 80 90 100 110

H1 2014 as reported H1 2015

Adjusted PBT movement (£m)(1)

LfL NRI Net investments Developments Premium

• utlets

Admin FX

Financial results

Financing

+27.3%

(2) (3)

Managing and refocusing costs

9

Cost:income ratio (%)

14.5% 13.2% 12.7% 11.2% 12.5% 11.4% 10.7% 11.2%

0% 5% 10% 15% 20% 25% 30% FY 2012 FY 2013 FY 2014 H1 2015

Corporate expenses Operational costs

Financial results

27.0% 24.6% 23.4%(1) 22.4%

(1) Excludes one-off restructuring charge of £3.0m (at 31 December 2014)

2016 target

21%

Valuation analysis

10

(1) At constant currency (2) Figures on a proportionally consolidated basis (3) Principally assets held for redevelopment and non-core (4) Premium outlet figures relate to Hammerson interests

H1 2015 capital return(1) Components of underlying valuation change Value at 30 Jun 2015(2) (%) Yield shift (%) Income (%) Other (%) (£m) UK shopping centres

+3.0 +2.0 +1.1 0.0 2,949

UK retail parks

0.0

• 0.3

+0.1 0.0 1,607

France

+3.6 +5.0

• 0.6
• 0.8

1,734

UK other interests(3)

+1.2 +2.2 +0.1

• 1.0

185

Investment portfolio

+2.4 +2.2 +2.2 +0.4 +0.4

• 0.2

6,475

Developments

+5.7 0.0 0.0 +5.7 354

Premium outlets(4)

+7.1 +2.3 +4.7 +0.1 1,057

Total

+3.1 +2.1 +0.9 0.0 7,886

Financial results

Solid uplift in NAV

11

638 668 21 9 14 (12) (2)

610 620 630 640 650 660 670 680 690

Dec 2014 Jun 2015

Adjusted NAV movement (pence per share)

Portfolio revaluation Premium

• utlets

revaluation Adjusted profit Dividends FX & other

Financial results

+4.7%

Healthy financing ratios

12

Financing policy 30 Jun 2015 31 Dec 2014 Net debt

• £2,241m

£2,265m

Gearing

<85% 43% 46%

Loan to value

<40% 33% 34%

Cash/undrawn facilities

• £450m

£648m

Weighted average cost of finance

• 4.1%

4.7%

Interest cover

>2.0x 3.6x 2.8x

Net debt/EBITDA

<10x 7.3x 8.0x

Fixed rate debt

>50% 75% 79%

GBP/EUR fixed balance sheet hedging

80%-90% 90%(1) 88%

Financial results

(1) Pro forma as at 23 July 2015

Active protection against FX movement

13

(1) “EUR assets” are euro denominated properties and working capital including premium outlet investments at 30 June 2015. “EUR liabilities” are bonds, debt and currency swaps shown on a pro forma basis to include currency swaps traded in July 2015 (2) “EUR income” is the Group’s euro denominated H1 profit before interest, including premium outlets. “EUR interest” is euro denominated H1 finance expense shown on a pro forma basis to include currency swaps traded in July 2015 (3) GBP/EUR FX rate as at 31 December 2014 was 1.289 and as at 30 June 2015 was 1.412

Balance sheet hedging (€m)(1) Euro earnings hedging (€m)(2)

2,892 2,603

500 1,000 1,500 2,000 2,500 3,000 3,500 EUR assets EUR liabilities

90% hedged

55.0 39.4

10 20 30 40 50 60 EUR income EUR interest

72% hedged EUR has devalued over 9% vs GBP in H1 2015(3) Impact on HMSO was £179m on EUR assets and over £2m on EUR income After hedging, net impact was only £20m on net assets and less than £1m on earnings

Financial results

Portfolio update

David Atkins - CEO

UK shopping centres UK retail parks France Premium outlets Developments

14

03

Portfolio update: UK shopping centres

15 Bullring, Birmingham

Increasing consumer confidence driving good sales growth at UK shopping centres

16

• 25
• 20
• 15
• 10
• 5

5 10 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15

UK consumer confidence index(1) Hammerson UK shopping centres (YTD) Retail sales(2)

+2.0%

Footfall

+1.2%

Car park usage(3)

+2.3%

(1) Source: GfK Consumer Confidence Barometer Index Scores (2) Hammerson UK same-centre retail sales growth (3) Car count at Hammerson shopping centres

Portfolio update: UK shopping centres

Hammerson UK shopping centres (YTD) Leasing vs previous passing

+16.0%

Leasing vs ERV

+2.2%

ERV growth

+1.5% (3.3% annualised(1))

Attracting leading retailers and driving rental growth

17

Leasing highlights

Portfolio update: UK shopping centres

Bullring

(1) 12 month rolling ERV growth

Oracle Cabot Circus Highcross WestQuay Union Square Victoria Quarter Brent Cross

Positioning our assets to deliver future ERV growth

18

WestQuay Bullring Oracle

ERV growth(1)

• 1.2%

3.2% 4.4%

Destination catering offer International brands draw deals > ERV Successful lease renewal cycle completed New retailer concepts Low vacancy Multiple new international brands Destination catering offer Tenant mix deals Limited available units Lease renewal cycle

(1)12 month rolling ERV growth

P

Positive drivers

O

Current headwinds

Portfolio update: UK shopping centres

Driving footfall and dwell time with new restaurant and leisure space

19

(1) UK shopping centres by net rental income

Silverburn extension driving incremental spend for the centre Strong rental growth from catering leasing across the portfolio

+7%

Centre sales (YTD LfL)

+14%

Footfall (YTD LfL) Dwell time (YTD LfL)

+5% 14% +23%

Catering leasing vs ERV Space leased to catering and leisure brands(1)

Interacting with customers in real-time and leveraging valuable customer data

20

Data gathering Tailoring content and offers Driving loyalty and retail spend Sharing data and insight with retailers More valuable retail space

PLUS app rolled-out to all shopping centres More than 6,000 Bluetooth-enabled beacons installed On track to collect over 1 million shopper profiles

Portfolio update: UK shopping centres

Understanding customers is the key to success Digital infrastructure rolled out across portfolio

Portfolio update: retail parks

21 B&Q Eco learning store, Cyfarthfa retail park, Merthyr Tydfil

Retail parks: a major strength within our portfolio

Scale: second largest portfolio in the UK Matched to consumer convenience trends, in particular click & collect Leverage retailer relationships High Open A1, low food retail mix Efficient to run Active asset management strategy Profitable extensions and developments

22 Total area

Retail parks’ position with our portfolio

Portfolio update: UK retail parks

483,000m2

• No. of parks over 20,000m2

15 of 20

Occupancy

98.2%

Unexpired lease term to expiry or break

8.7 years

Open A1 consented space

58%

Average rent

£15/sq ft

Tenant overlap with shopping centres

Next•M&S•Boots River Island Debenhams•Costa Nando’s

Driving performance at our retail parks

23

Strong demand from traditional retailers Homeware category

Homeware lettings in last 12 months

+£3m passing rent +124% more space

Portfolio update: UK retail parks

Creating next generation park at

Elliott’s Field, Rugby

High-street retailers’ increased confidence in parks Fashion anchor tenants Actively applying Hammerson retail expertise Evolving the offer

upsizing

Retail parks developments deliver profitable returns

24

Phase 2 of 14,500m2 retail extension B&Q eco-learning store General merchandise M&S store anchor

• Estimated yield on cost 8%
• Estimated profit on cost 20%

Additional 15,000m2 of retail and catering floor space M&S Food Hall anchor Planning to be determined this month

• Estimated yield on cost 7%
• Estimated profit on cost 18%

2017

Orchard Centre, Didcot

Q3 2015

Cyfarthfa, Merthyr Tydfil

Q3 Q3 2015

Elliott’s Field, Rugby 15,700m2 retail space, an evolution of traditional shopping park 70% pre-let – Anchors Debenhams and M&S; first Ed’s Easy Diner in retail park portfolio

• Estimated yield on cost 8%
• Estimated profit on cost 40%

Portfolio update: UK retail parks

Total investment £114m

Portfolio update: France retail

25 Les Terrasses du Port, Marseille

Consumer recovery still fragile in France but good progress with leasing

26

French retail sales growth (%)(1)

Hammerson France (YTD) Retail sales(2)

• 1.6%

Footfall

• 1.6%

Leasing vs previous passing

+5.2%

Leasing vs ERV

+0.5%

ERV growth

• 0.5% (+0.5% annualised)(3)
• 5
• 4
• 3
• 2
• 1

1 2 3 4 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15

(1) Source: Banque de France. Sales volumes, seasonally adjusted, YoY change (2) Retail sales on same-centre basis (3) 12 month rolling ERV growth

Portfolio update: France retail

8 international retailers

• pening first store with

Hammerson

5 international retailers

• pening first store in

France

20 40 60 80 100 120 140 160 180 200

2014 H1 2015 H2 2015 2016 +

Securing multiple new international retailers delivers 21% sales uplift

27 Portfolio update: France retail

Number of units re-tenanted across portfolio

51 units

Target 20% of retail

• ffer renewed

33 units 36 units 50 units

Capital recycling to lift quality of French portfolio

28

Disposals Developments/Extensions £90m total deal value 5.5% average NIY 15% above book value Beauvais opening Nov 2015 – 6.5% YOC Planned extensions at Nancy and Cergy

Bercy 2, Paris Grand Maine, Angers Le Jeu de Paume, Beauvais Saint Sébastien, Nancy Cergy 3 Fontaines Portfolio update: France retail

Portfolio update: Premium outlets

La Vallée Village, Paris

Premium outlets represents 13% of Hammerson’s portfolio

Invested since 1998 Hammerson exposure(1) : 38% Leading operator of luxury Villages across Europe 9 Villages 172,000m2 Growth through extensions to existing Villages

30

(1) Excludes loans to Value Retail entities

Value Retail : GAV £916 million New in 2014 Hammerson exposure : 47% Partnership between Hammerson, APG, Value Retail and Meyer Bergman 6 outlet centres 180,000m2 Acquisition/turnaround strategy VIA Outlets : GAV £141 million Sales growth H1 2015 +12.3% Sales growth H1 2015 +12.0%

Portfolio update: premium outlets

Unique exposure to the fast growing international shopping tourism market

31

(1) Source: Global Blue Annual Forum 2014

2006 2007 2008 2009 2010 2011 2012 2013 2014

Value Retail brand sales (£m) CAGR

17%

2014 European tax free sales by nationality(1)

Size of circle represents share of spend with % growth labelled

Outlets market growth is structural, not cyclical

• Strong demand for discounted luxury goods
• Expanding shopping tourism market
• Growing retailer appreciation of outlets as part
• f a multichannel strategy

Portfolio update: premium outlets

Active management of VIA Outlets assets delivering improved sales performance

32

(1) Sales density uplift YoY for VIA Outlets portfolio in H12015

International fashion and luxury brands Mainstream fashion brand outlets Low-end discount outlets

<€2,000 €2,000–€10,000 €30,000+

Value Retail

Portfolio update: premium outlets

VIA Outlets sales densities(1)

Hugo Boss flagship, Batavia Stad

Increasing sales densities €/sq m

VIA Outlets

+13%

Extension opportunities offer additional growth for premium

• utlets

33

(1) YoY H1 2015 sales

Q4 2017

Bicester Village, UK

Q1 Q1 2017

Batavia Stad, Amsterdam 5,800 m2 25% incremental space Phase 3 extension Completed June 2014 Sales +30%(1) 6,100 m2 56% incremental space 35 new boutiques Phase 2 extension Opening in October 5,500 m2 22% incremental space 45 new units Phase 4 & 5 extension 5,200 m2 23% incremental space 33 new boutiques Phase 4 extension

Deliv ivered ed

La Roca Village, Barcelona

Q4 2015

Kildare Village, Dublin Value Retail VIA Outlets Total development cost c.£110m Total development cost c.£22m

Portfolio update: premium outlets

Portfolio update: Developments

34 WestQuay Watermark, Southampton

On site developments: Le Jeu de Paume, Beauvais

35

75% pre-let 86 shops and restaurants Anchored by H&M, Carrefour Latest brands signed:

Enhancing our French portfolio with attractive city centre retail

Total Project Cost

£60m

Yield on cost

6.5%

Opening

Nov 2015

Portfolio update: developments

Size

23,800m2

On site developments: Victoria Gate, Leeds

36

51% pre-let Handover of John Lewis unit Q1 2016 Latest brands signed:

Creating the premium and aspirational shopping offer for the north of England

Total Project Cost

£165m

Yield on cost

6.5%

Completion

Q3 2016

Size

35,400m2

Portfolio update: developments

On site developments: WestQuay Watermark, Southampton

37

75% pre-let Showcase Cinema de Lux

• pening Q1 2017

Catering brands signed include:

Consolidating WestQuay and Watermark as the city’s leading leisure & retail destination

Total Project Cost

£85m

Yield on cost

6.0%

Completion

Q1 2017

Size

17,000m2

Portfolio update: developments

Major developments: Croydon

38

H1 2015

CPO Inquiry concluded Mar 2015 Acquisition of further 50% interest in Whitgift centre Mar 2015 Croydon’s regeneration advancing

H2 2015

Outcome of CPO Inquiry expected Sep 2015 Detailed design of enhanced three level scheme Advance retailer discussions

Transforming South London’s retail and leisure offer Image to come of surrounding Croydon dev.

Croydon Partnership retail

200,000m2

Cost to complete

£575-700m

Earliest start

2016

[high res image]

Portfolio update: developments

Major developments: Brent Cross

39

H1 2015

Infrastructure consents approved Mar and Jun 2015 CPO process started Advanced tenant mix proposals

H2 2015

Final infrastructure consent Sep 2015 Confirmation of date for CPO Inquiry (indicative date Q1 2016) Working up scheme design and consents

Regenerating North London’s iconic retail destination New CGI image to come

Incremental retail space

90,000m2

Cost to complete

£475-550m

Earliest start

2017

Portfolio update: developments

Major developments: The Goodsyard

40

H1 2015

GLA support for the scheme Revised planning application submitted Jun 2015

• 25,000m2 additional

commercial space

• Revised office buildings

design and accelerated delivery

• Revised residential buildings

design; tower heights reduced

H2 2015

Target Planning determination (Q4 2015)

Opportunity to create a new London village

Size (gross external area)

270,000m2

Total Phase 1 cost to complete

£140-160m

Earliest start

2016

Portfolio update: developments

Hammerson’s proven track record in developments supports future delivery

41

(1) Completed developments: Manor Walks, Cramlington; Monument Mall, Newcastle; Abbotsinch Retail Park, Paisley; Les Terrasses du Port, Marseille; Silverburn leisure extension, Glasgow (2) Schemes on site: WestQuay Watermark, Southampton; Victoria Gate, Leeds; Le Jeu de Paume, Beauvais; Elliott’s Field Shopping Park, Rugby; Cyfarthfa Retail Park, Merthyr Tydfil (3) Major developments: Whitgift, Croydon; Brent Cross Cricklewood, North London

20 40 60 80 100 120 140

Developments completed since 2013 Schemes on site Major developments

Estimated additional income from developments (passing rent, £m)

(1) (2) (3)

22% of current passing rent 7% of current passing rent

Portfolio update: developments

Conclusion

42

04

Proven strategy delivering consistent shareholder returns

43

Improving end markets Operational excellence Strong development pipeline Effective cost management Delivering EPS and DPS growth

EPS (pence) DPS (pence)

13.6 5 10 15 20 25 2011 2012 2013 2014 2015 H1 H2 9.5 5 10 15 20 25 2011 2012 2013 2014 2015 H1 H2

CAGR 7.4% CAGR 7.1%

Questions

44

Disclaimer

45

Appendices

46

Our assets

47

Property portfolio

£7.9 billion

Shopping centres Retail parks

20

Premium outlet centres

15

Retail space

2.2 million m2 20

Annual visitors

250 million

UK Shopping Centres France Retail UK Retail Parks Premium Outlets

Portfolio breakdown by GAV

47 Appendices

Note: Map excludes Bercy 2, Paris and Grand Maine, Angers

Retail leadership and insight

Leadership Sales barometer Research

Monthly sales tracker across 850 units Annual retail research report

Debate Insight Thought leadership

IPF research: Pricing Retail Space Gathering and analysing retail data Across leading trade publications

48

Ear to the ground with retailers

David Atkins, BCSC President 2015 Jean-Philippe Mouton, Co-Chair, CNCC Committee driving retail performance

Appendices

Conditions for rental growth in UK shopping centres

Macro backdrop Retailer profitability Rental tension Consumer confidence Polarisation means less physical space Falling administrations Low interest rates Sunday trading Value of space for ‘showrooming’ and ‘webrooming’ Falling unemployment Adapting to multichannel competitive backdrop Upsizing of brand space House price inflation Business rates New international brands Low price inflation Low inflation/deflation Rent reviews corresponding to development cycle Wage inflation Low online margins Pure online retail cannibalisation Euro referendum

49

Conditions for rental growth in UK retail parks

Economic backdrop Retailer strategies Retail Parks positioning Regional economic recovery Homeware and furnishing retailers expanding Increasing space to service

• nline distribution

House price inflation Value retailers absorbing vacant space Ideally positioned for click & collect Low interest rates Discount food retailers expanding Modernised store formats Low and falling unemployment Fashion retailers moving away from high street Growing catering offer Fuel costs remain low Electrical goods retailers remaining competitive Market supply of space Wage inflation DIY retailers downsizing Competing with increasing high street vacancy Public sector spending cuts Food retailers severely challenged Finite retailer requirements

50

Positive uplift in rents for the group in H1 2015

51

(1) 12 month rolling ERV (2) Previous passing rent not comparable due to reconfiguration (3) Including UK other properties

Leasing vs previous passing Leasing vs ERV ERV growth (1) Rent secured from new leases UK shopping centres

+16.0% +2.2% +3.3% £5.4m

UK retail parks

n/a(2) +2.5% +0.2% £1.5m

France

+5.2% +0.5% +0.5% £3.3m

Group (3)

+10.2% 1.7% +1.6% £10.6m

Portfolio update

On site and major developments

On site developments(1)

Lettable area m2 Potential completion Current value (2) £m Estimated cost to complete(3) £m Estimated annual income(4) £m Let(5) %

Cyfathfa retail park extension, Merthyr Tydfil 14,500 Q3 2015 n/a 6 2 66 Elliott’s Field shopping park, Rugby 15,700 Q3 2015 n/a 14 3 70 Le Jeu de Paume, Beauvais 23,800 Q4 2015 44 14 4 75 Victoria Gate (Phase 1), Leeds 35,400 Q3 2016 80 101 11 51 WestQuay Watermark, Southampton 17,000 Q1 2017 16 70 5 75 Total 106,400 205 25

52

Major developments

Ownership % Lettable area m2 Earliest start Potential completion Estimated cost to complete(6) £m Croydon town centre, South London 50 200,000 2016 2019/20 575-700 The Goodsyard, London E1(7) 50 270,000 2016 Phased 140-160 Brent Cross extension, London NW4 41 90,000 2017 2020/21 475-550 Total 560,000 1,190-1,410

(1) Group ownership 100% for all on site schemes (2) Valuation at 30 Jun 2015. Values are not included for extension projects as they are incorporated in the valuation 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 23 July 2015 (6) Hammerson’s share of incremental capital cost including capitalised interest. These costs are indicative as full scheme details are yet to be finalised (7) Cost reflects phase 1 only. Due to residential component of scheme, area is gross external

Appendices

Development pipeline opportunities

Scheme Lettable area m2 Key Facts Silverburn (Phase 4), Glasgow 50,000

• Determination due on Masterplan planning application made in July 2015 for future

extension of existing centre in second half of 2015

• Masterplan also includes retail, hotel and leisure uses

Victoria Gate, Leeds (Phase 2) 73,000

• Planning consent for retail-led scheme, including up to 2,700 car park spaces
• Freehold control of site obtained

WestQuay Watermark, Southampton (Phase 2) 58,000

• Outline planning consent for mixed use scheme
• Council owned land, with joint review of scheme under way

Orchard Centre, Didcot 14,000

• £50 million mixed-use 14,000m² extension to existing centre
• Extension of existing development agreement obtained in June 2015 and M&S foodhall

anchor tenant secured

• Outcome of planning application submitted in February 2015 due by the end of July

Parc Tawe, Swansea 20,600

• 18,000m² refurbishment and modernisation of existing retail park
• On going discussions to enhance planning permission granted in August 2014

Italie Deux, Paris 13ème 5,100

• Retail extension of existing shopping centre
• Progressing necessary consents to enable start-on site

Les 3 Fontaines, Cergy Pontoise 24,500

• Retail and leisure extension as part of wider city centre project
• Submission of a number of consent applications and agreement with a number of co-owners

achieved in first half of 2015

• Awaiting confirmation of consents and final co-ownership agreements

SQY Ouest, Sain-Quentin-en- Yvelines 30,200

• Opportunity to reposition existing shopping centre, creating a leisure-led destination

Total 275,400 53 Appendices

Forecast development expenditure

50 100 150 200 250 300 350 2014 2015 2016 2017 2018 2019 The Goodsyard Whitgift, Croydon Brent Cross Other on site developments Le Jeu de Paume WestQuay Victoria Gate Les Terrasses du Port 54

(1) Other on site developments: Silverburn, Glasgow; Cyfarthfa Retail Park, Merthyr Tydfil; Elliott’s Field Shopping Park, Rugby (2) Additional development opportunities shown on previous slide

Forecast development expenditure

On site developments Future developments(2) £303m Forecast £203m £194m £258m £277m Appendices

Reducing interest costs and extending maturity

55 100 200 300 400 500 600 700 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

£415m RCF due 2020 undrawn £415m RCF due 2020 Undrawn facilities Bank drawn debt USPP Sterling bonds Euro bonds Secured debt

Debt maturity profile (£m)

New bank facility £415m 80 bps replacing 150bp 2016 facility

Appendices

Cost:ratio 2015

56

(1) Figures on a proportionally consolidated basis (2) Principally assets held for redevelopment and non-core (3) Premium outlet figures relate to Hammerson interests

UK shopping centres UK retail parks France Devs & other Group Net service charge expenses

2.0 1.0 1.8 1.5 6.3

Other property outgoings

7.5 1.0 3.9 1.5 13.9

Total property outgoings

9.5 2.0 5.7 3.0 20.2

Employee and corporate costs

23.0

Management fees receivable

(2.9)

Net administration costs

20.1

Total operating costs

40.3

Gross rental income, after rents payable

78.1 43.6 48.5 9.5 179.7

Cost ratio – property outgoings, %

12.2 4.6 11.8 31.6 11.2

Cost ratio – administration costs, %

11.2

Cost ratio, total %

22.4

Appendices

Premium outlets overview

57

Value Retail Villages VIA Outlet centres Bicester Village, UK Kungsbacka, Gothenburg Kildare Village, Dublin Batavia Stad, Amsterdam Maasmechelen Village, Brussels Fashion Arena, Prague Wertheim Village, Frankfurt Excalibur Chvalovice La Vallée Village, Paris Landquart, Zurich Ingolstadt Village, Munich Alcochete, Lisbon Fidenza Village, Milan La Roca Village, Barcelona Las Rozas Village, Madrid

Appendices

Hammerson’s investment in Value Retail

Holding companies 22% equity

Bicester Village

33 45

La Roca Village

23 35

Las Rozas Village

19 31

La Vallée Village

1 1 22

Maasmechelen Village

13 24

Fidenza Village

20 32

Wertheim Village 31 43 Ingolstadt Village 11 Kildare Village 3 14 58

(1) Not including €35m of additional loans secured against various Value Retail assets

Village ownership via LPs (%) Total Village

• wnership (%)

Hammerson €58m(1) shareholder loan

Appendices

Value Retail share of results

59

Income statement

30 Jun 2015 £m 30 Jun 2014 £m Share of results associate

64.1 59.8

Less EPRA adjustments

(57.0) (53.4)

Adjusted earnings of associate

7.1 6.4

Interest receivable

2.6 3.0

Total impact of Value Retail on income statement – adjusted basis

9.7 9.4

Balance sheet

30 Jun 2015 £m 31 Dec 2014 £m Investment in associate

668.7 628.8

Add: EPRA adjustments

40.4 31.9

EPRA adjusted investmetn in associate

709.1 660.7

Loan to Value Retail

65.8 63.5

Total impact of Value Retail on balance sheet – EPRA basis (1)

774.9 724.2

(1) Not including investment in Value Retail China of £4.9m

Appendices

Lease expiries and breaks as at 30 June 2015

Rents passing that expire/break in ERV of leases that expire/break in Weighted average unexpired lease term Proportionally consolidated excluding premium outlets 2015 £m 2016 £m 2017 £m 2015 £m 2016 £m 2017 £m To break years To expiry years

Notes A A A B B B

United Kingdom

• m

Shopping Centres 18.6 8.1 9.2 22.1 8.1 9.5 6.4 8.2 Retail Parks 6.8 1.1 2.0 7.7 1.2 1.9 8.8 9.8 Other 3.2 0.6 1.0 4.0 0.6 1.1 8.3 9.4

Total

28.8 9.8 12.2 33.8 9.9 12.5 7.4 8.8

Fra rance ce

11.8 3.8 3.5 12.9 4.0 5.1 3.9 6.3

Total investment portfolio

40.4 0.4 13.6 3.6 15.7 5.7 46.7 6.7 13.9 3.9 17.6 7.6 6.4 8.1

60

A. The amount by which rental income, based on rents passing at 30 June 2015, could fall in the event that occupational leases due to expire are not renewed or replaced by new

• leases. For the UK, it includes tenants’ break options. For France, it is based on the date of lease expiry.

B. The ERV at 30 June 2015 for leases that expire or break in each year and ignoring the impact of rental growth and any rent-free periods.

Rent reviews as at 30 June 2015

Rents passing subject to review in Projected rents at current ERV of leases subject to review in Proportionally consolidated excluding premium outlets Outstanding £m 2015 £m 2016 £m 2017 £m Outstanding £m 2015 £m 2016 £m 2017 £m

Notes A A A A B B B B

United Kingdom

• m

Shopping Centres 29.8 5.3 9.8 12.6 33.1 6.6 10.6 13.4 Retail Parks 30.1 10.6 14.7 9.1 30.7 11.0 15.0 9.4 Other 3.2 2.7 0.9 0.8 3.3 2.8 1.0 0.9

Total

63.0 18.6 25.4 22.5 67.1 20.4 26.6 23.7

61

A. Rents passing at 30 June 2015, after deducting head and equity rents, which are subject to review in each year. B. Projected rents for space that are subject to review in each year, based on the higher of the current rental income and the ERV as at 30 June 2015 and ignoring the impact of changes in rental values before the review date.

Operational statistics

62

(1) Retail sales on same-centre basis (2) France data includes VAT

Appendices

Occupancy (%)

UK shopping centres UK retail parks France Devs & other Group

30 June 2015

97.8 98.3 96.7 89.0 97.2

31 December 2014

98.1 98.5 96.6 91.3 97.5

30 June 2014

97.7 98.2 96.6 91.6 97.2

UK shopping centres France

Sales(1)

+2.0%

• 1.6%

Footfall

+1.2%

• 1.6%

Rent:sales(2)

12.6% 12.2%

OCR(2)

20.1% 15.0%

Sales densities(2)

UK £/ft2 France £/ft2

2015

295-620 222-630

2014

290-590 200-610

2013

270-560 200-620

Valuation data

63

(1) Excludes premium outlets (2) On a like-for-like basis

UK shopping centres UK retail parks France retail UK Other interests Total continuing portfolio True equivalent yield (%) (1) 30 June 2015

5.3 5.7 5.0 7.7 5.5

30 June 2014

5.4 5.9 5.4 7.0 5.6

Change (bps)

(10) (20) (40) 70 (10)

ERV (£m) (2) 30 June 2015

150.8 84.8 95.5 13.3 344.4

30 June 2014

145.9 84.6 95.0 13.3 338.8

Change (%)

3.3% 0.2% 0.5% 0.3% 1.6%

Financial results

Components of valuation change

64

Components of valuation change in H1 2015 – Total Portfolio (£m)

57

• 5

82 138 31 2

• 10

23

• 1

1

• 13

17 2 87

• 3

60 17 163

• 40
• 20

20 40 60 80 100 120 140 160 180 Yield Income Development & other Total UK Shopping Centres UK Retail Parks France Total Portfolio Developments

65 30 June 2015

52 units in administration (1.0% passing rents) 10 units unoccupied (0.3% passing rents)

31 Dec 2014

55 units in administration (1.0% passing rents) 13 units unoccupied (0.4% passing rents)

31 December 2013 49 units in administration (1.2% passing rents) 22 units unoccupied (0.5% passing rents)

Tenants in administration as at 30 June 2015