Financial results H1 2018 EPP Interim Results 2018 1 Agenda 1 - - PowerPoint PPT Presentation

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EPP Interim Results 2018

Financial results

H1 2018

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EPP Interim Results 2018

Agenda

1 EPP at a glance and H1 2018 highlights 2 Polish macro update and EPP strategy 3 Financial highlights H1 2018 4 Operational highlights H1 2018 5 Acquisitions and developments 6 Office disposal update 7 Outlook

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EPP Interim Results 2018

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EPP at a glance

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EPP Interim Results 2018

2018

• One of the most

dominant retail landlords in Poland with nearly 700 000 m2 GLA

Lomza Warsaw Zamosc Krakow Lodz Wrocław Poznan Szczecin Kielce Inowroclaw Jelenia Gora Klodzko Czeladz Przemysl Bełchatow Wloclawek Zabrze Kalisz Retail assets (19) Retail development projects (2)

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EPP Interim Results 2018

2020

• 1 million m2 GLA
• 28 shopping centres
• 40% of the population

within a 30 min drive

Lomza Warsaw Zamosc Krakow Lodz Wrocław Poznan Szczecin Kielce Inowroclaw Jelenia Gora Czeladz Przemysl Bełchatow Wloclawek Zabrze Kalisz M1 Bytom M1 Czestochowa Power Park Olsztyn Power Park Opole Power Park Kielce M1 Poznan M1 Tychy Klodzko M1 Radom Retail assets (20) Retail development projects (1) M1 centres tranche 2 and 3

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EPP Interim Results 2018

EPP at a glance

Total portfolio value (EUR’m) Share of retail in portfolio Number of shopping centres Retail portfolio GLA (m2) Net asset value per share (EUR) Distribution per share (EUR cents) LTV

IPO- Aug 2016 1 210 76% 9 303 338 1.04 56.4% 2 067 85% 18 638 815 1.37 5.82 50.9% H1 2018

Portfolio growth and strategy executed

H1 2017 1 623 74% 13 402 637 1.23 5.19 50.6%

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EPP Interim Results 2018

H1 2018 Retail performance review

GLA m2

444 360

Footfall

+1%^

Sales/m2

0%^

Vacancy

0.9%

Walt by NOI

4.64

*LFL NRI growth excludes, Galaxy and Outlet extensions ^Includes the impact of the Sunday trading ban that commenced in March 2018

RTS

11.3%

OCR

15.1%

LFL NRI growth* g

+4.1%

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EPP Interim Results 2018

H1 2018 Financial highlights

ON TRACK TO DELIVER FULL YEAR DIVIDEND GUIDANCE OF BETWEEN

11.6 – 11.8

EURO CENTS

Income statement H1 2017 vs H1 2018

1 Excluding deferred tax

Balance sheet FY 2017 vs H1 2018

Net property income p p y

+ 45% € 66m

Total assets

Distributable earnings NAV1 per share DPS per share

LTV net

Distributable earnings

+ 32% € 48m

S p

+ 12% € 5.82c

Total assets

+ 19% € 2 320m

NAV per share

+ 3.8% € 1.37

LTV net

+ 3.5% 50.9%

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EPP Interim Results 2018

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Poland’s macro update and EPP strategy

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EPP Interim Results 2018

Great potential for consumption and retail sales growth

Unemployment rate Average monthly salary (EUR)

2,0% 4,0% 6,0% 8,0% 10,0% 12,0% 2013 2014 2015 2016 2017 2018 (f) 2019 (f) 2020 (f) Poland Germany EU28 Source: Oxford Economics, National Bank of Poland

20,90% 11,21% 0,00% 3,00% 6,00% 9,00% 12,00% 15,00% 18,00% 21,00% 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 Poland Germany Average monthly salary (EUR) Average monthly salary 2012-2017 growth #REF!

Significant boost from consumer spending

Consumer spending in Poland (EUR bn)

Consumer confidence index in Poland (100=long-term average)

229 229 236 243 251 263 274 284 293 101,80 98 99 100 101 102 2012 2013 2014 2015 2016 2017 2018F 2019F 2020F 50 100 150 200 250 300 350 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000 2012 2013 2014 2015 2016 2017 Growth (y-o-y) Average monthly salary in Poland (PLN)

Average monthly salary (PLN)

Average salary growth (PLN)

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EPP Interim Results 2018

7,50% 7,00% 6,00% 6,00% 6,00% 6,00% 5,50% 5,25% 5,00% 5,60% 5,20% 5,00% 4,70% 4,70% 4,70% 4,60% 4,60% 4,60% 4,00% 4,50% 5,00% 5,50% 6,00% 6,50% 7,00% 7,50% 8,00% 2009 2010 2011 2012 2013 2014 2015 2016 2017 Poland Germany (Berlin)

Why focus on retail in Poland?

Limited new supply

New supply of shopping centre stock (000s m2)

Decreasing prime yields

Prime retail yields in major regional Polish cities (%)

743 452 615 475 607 425 612 443 399 459 253 250 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018F 2019F 2020F SOURCE: Savills

EPP yield 6.4%

• Exposure to nearly 40 million people
• Lack of high streets
• Over 71% of retail spend occurs in shopping

centres

• Shopping centres seen as destinations
• Omni channel enhances in-store sales

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EPP Interim Results 2018

3

Financial highlights

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EPP Interim Results 2018

Profit & loss

EUR million HY 2018 HY 2017 Variance Net property income 66,2 45,5 20,7 Other income / (expenses) (0,2) 0,4 (0,7) Administrative & selling expenses (6,7) (4,2) (2,6) EBITDA 59,2 41,8 17,4 Fair value gain on investment property 28,8 15,6 13,2 Share in fair value gain & profit of JVs 25,3 2,7 22,6 Finance income / (expenses) (15,5) (8,0) (7,5) Foreign exchange gains / (losses) 5,9 (2,7) 8,5 Current taxation (4,9) (1,5) (3,4) Deferred taxation (19,5) (8,4) (11,1) Net profit after taxes 79,4 39,6 39,8 Earnings adjustments (33,2) (6,6) (26,6) Antecendent dividend 2,1 3,7 (1,6) Distributable earnings 48,3 36,6 11,7 DPS (€ cents) 5,82 5,19 0,63

NPI GROWTH

45%

DISTRIBUTABLE EARNINGS GROWTH

32%

DPS GROWTH

12% 42%

EBITDA GROWTH

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EPP Interim Results 2018

Balance sheet

LTV

50.9%

DEBT MATURITY AUGUST 2018 (3.6 YEARS 30 JUNE 2018)

4.3 years

AVERAGE COST OF DEBT

2.38% 3.8%

NAV PER SHARE GROWTH

EUR million 30 Jun 2018 31 Dec 2017 Variance Investment property 2 067 1 656 411 Investment in JVs 138 116 22 Financial assets 22 30 (8) Deferred tax asset 1

• 1

Other assets 21 28 (6) Cash 70 123 (53) Total assets 2 320 1 952 368 Equity 976 834 142 Borrowings 1 195 968 227 Deferred tax liability 110 94 16 Other liabilities 39 56 (18) Total equity and liabilities 2 320 1 952 368 NAV per share € 1,37 € 1,32 € 0,05 LTV (net) 50,9% 47,4% 3,5%

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EPP Interim Results 2018

Capital structure – liquidity secured

Debt maturity profile as at 30 June 2018 Debt maturity profile as at 31 August 2018

11 195 425 2018 2019 2020 2021 2022 >2022

(€m) Average maturity: 4.3 years

672

EPP successfully refinanced the following loans in the last two months:

• EUR 100m bridge to equity loan with EUR 102m (program up to EUR 200m) bonds issued to Polish financing institutions
• EUR 150m senior loans for Galeria Echo and Opolska offices by the largest Polish bank PKO BP

100 150 11 80 185 2018 2019 2020 2021 2022 >2022

(€m) Average maturity: 3.6 years

672

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EPP Interim Results 2018

Capital structure - focus on LTV

Reducing LTV

56,4% 55,4% 47,4% 50,9% 45%

IPO FY 2016 FY 2017 H1 2018

• term

target

LTV (%)

• LTV increased due to the acquisition of Tranche 1 of the M1

portfolio

• Factors driving LTV reduction
• Active asset management continues to drive valuat
• f our properties
• Portion of office sales proceeds will utilised to

reduceLTV

• Exploring releasing some equity from retail assets

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EPP Interim Results 2018

4

Retail

• perational highlights

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EPP Interim Results 2018

H1 2018 Retail performance review

GLA m2

444 360

Footfall

+1%^

Sales/m2^

0%^

Vacancy

0.9%

Walt by NOI

4.64

*LFL NRI growth excludes Galaxy and Outlet extensions ^Includes the impact of the Sunday trading ban that commenced in March 2018

RTS

11.3 %

OCR

15.1 %

LFL NRI growth* g

+4.1%

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EPP Interim Results 2018

Sunday trading

Consumer shift already seen from Sundays to Saturdays, Mondays and Fridays

• Saturdays – up to 12% increase
• Mondays – up to 12% increase
• Fridays – up to 8% increase

Average footfall change

+ 12% + 3% + 7% + 4% + 8% + 12%

• 48%

Mon Tue Wed Thu Fri Sat Sun

• 100%
• 80%
• 60%
• 40%
• 20%

+ 0% + 20% 50 000 100 000 150 000 200 000 250 000 300 000 Mar-Jun 2017 Mar-Jun 2018

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EPP Interim Results 2018

Featured project – Pasaz Grunwaldzki

• Project highlights
• Top LPP brands opened flagship stores
• Currently in negotiations with another large brand
• Rossman flagship store opened
• Concept design of architectural changes completed and

refurbishments of common areas in progress

WROCŁAW

GLA (m2) 48 352 Rent to sales 14.5% WAULT 4.8 years Occupancy 99.1% Footfall growth

• 2.4%

Footfall H1 2018 5.1 million Turnover growth

• 9.6%

Valuation yield 5.7%

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EPP Interim Results 2018

Galaxy

Largest shopping & entertainment centre in Northwest Poland

• 16% growth in footfall with the new extension
• Extended area generated over EUR 14m of turnover, 53% increase

not LFL

• Postive like for like turnover
• Multikino opened VR Multikino, only third of its kind in Poland
• New food court designs completed

SZCZECIN

GLA (m2) 56 630 Rent to sales 13.4% WAULT 7.1 years Occupancy 99.6% Footfall growth 16.1% Footfall H1 2018 6.1 million Turnover growth +1% Valuation yield 5.9%

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EPP Interim Results 2018

Galeria Echo

• Largest fashion and entertainment offering in the region
• Extension of the Food & Beverage offering
• New fitness operator

KIELCE

GLA (m2) 71 830 Rent to sales 10.4% WAULT 4.2 years Occupancy 97% Footfall growth

• 3.9%

Footfall H1 2018 4.5 million Turnover growth +2.4% Valuation yield 5.9%

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EPP Interim Results 2018

Amber

• TK maxx opened and performing exceptionally well
• New brands introduced to the scheme
• Increase in footfall and turnover

KALISZ

GLA (m2) 33 546 Rent to sales 9.3% WAULT 4.6 years Occupancy 99.8% Footfall growth +4.6% Footfall H1 2018 3.1 million Turnover growth +1.9% Valuation yield 6.4%

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EPP Interim Results 2018

5

Acquisitions and developments

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EPP Interim Results 2018

M1

• 12 dominant shopping

centres

• 40% of the population

within a 30 min drive

• Combined footfall will

grow to 120 million

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EPP Interim Results 2018

Key Facts – M1 Growth Potential

GLA

446 500

Sustainable NOI

49 m

Potential extension (m2)

> 50 000

Potential NOI growth g

20 – 25%

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EPP Interim Results 2018

Kings Cross Marcelin

• Located in the affluent western part of Poznan
• Isolated catchment area of approx. 350 000 within a 30 min drive
• Strong KPI’s
• Extension opportunities
• Significant demand from new tenants
• In close proximity to the largest developing office node in Poznan

POZNAN

GLA (m2) 45 353 Rent to sales (RTS) 9.8% WAULT 4.8 years Occupancy 99% Occupancy cost ratio (OCR) 12.4% Annual footfall 4.7 million Net initial yield 7.3%

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EPP Interim Results 2018

Developments

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EPP Interim Results 2018

Galeria Młociny

• 87% signed leases and letters of intent (Zara, TK Maxx, MediaMarkt,

Smyk, H&M, Sephora, Douglas, Van Graaf, CCC, Go sport)

• The largest food and beverage and entertainment offering in Warsaw
• Advanced talks with new international brands
• 1.5 million people within 30 min driving distance
• Park’n’Ride – 40K passengers daily; 150K cars per day
• Opening spring 2019

Planned total GLA (m2) 82 122 Estimated fully-let NOI on completion € 22 m Estimated development yield on cost

• c. 7.0%

Estimated valuation yield on completion

• c. 5.3%

Estimated value on completion €412 m

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EPP Interim Results 2018

Towarowa 22

• Undergoing zoning process scheduled for 2019
• Warsaw mixed use scheme with 110 000 m² GLA of retail
• Potential additional of 45 000 m² GLA of mixed-use: residential,
• ffice and hotel
• Strong interest from all main anchor tenants

Planned total retail GLA (m2) 105 000 Estimated cost of retail development (land included) € 420 m Estimated fully let retail NOI on completion € 34 m Estimated development yield on cost

• c. 8%

Estimated valuation retail yield on completion

• c. 5 %

Estimated value of retail space €680 m Estimated value of the additional space €150 m TOTAL €830 m

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EPP Interim Results 2018

6

Office update

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EPP Interim Results 2018

Office sale update

MALTA OFFICE PARK, POZNAŃ

GLA 28 270 m²

O3 BUSINESS CAMPUS, KRAKÓW

GLA 56 926 m² (all three phases)

SYMETRIS (I & II)

GLA: 19 000 m²

• In line with our recycling strategy EPP

disposed of A4 Business Park, Tryton Business House and West Gate for a total consideration of €160m in December 2017

• The sale of O3 Business Park, Malta

and Symetris Business Park is in the final stage of negotiations.

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EPP Interim Results 2018

7

Outlook

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EPP Interim Results 2018

2018 Focus

ON TRACK TO DELIVER FULL YEAR DIVIDEND GUIDANCE OF BETWEEN

11.6 – 11. 8

EURO CENTS

Portfolio integration Asset management Asset recycling LTV reduction

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EPP Interim Results 2018 This document has been prepared and issued by and is the sole responsibility of the management of EPP N.V. (the “Company” or “EPP”) and its subsidiaries. No information made available in connection with this presentation may be passed on, copied, reproduced, in whole or in part, or otherwise disseminated, directly or indirectly, to any other person. The contents of this presentation are to be kept confidential. This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract commitment or investment decision in relation thereto nor does it constitute a recommendation regarding the securities of the Company. Investors and prospective investors in securities of the Company are required to make their own independent investigation and appraisal of the business and financial condition of the Company and the nature of the securities. This presentation and any materials distributed in connection with this presentation may include certain forward-looking statements, beliefs or opinions, including statements with respect to the Company’s business, financial condition and results of operations. These statements, which contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect”, “forecast” and words of similar meaning, reflect the Directors’ beliefs and expectations and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the

• future. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. There are a number of factors that could cause

actual results and developments to differ materially from those expressed or implied by these statements and forecasts. Past performance of the Company cannot be relied on as a guide to future performance. Forward-looking statements speak only as at the date of this presentation and the Company expressly disclaims any obligations or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation. No statement in this presentation is intended to be a profit forecast. As a result, you are cautioned not to place any undue reliance on such forward-looking statements. The information on which these statements has been based has not been reviewed or reported by EPP’s auditors. This document speaks as of the date hereof. No reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness, accuracy or

• fairness. The Company, its advisers and each of their respective members, directors, officers and employees are under no obligation to update or keep current the information contained

in this presentation, to correct any inaccuracies which may become apparent, or to publicly announce the result of any revision to the statements made herein except where they would be required to do so under applicable law, and any opinions expressed in them are subject to change without notice. No representation or warranty, express or implied, is given by the Company, or any of its subsidiary undertakings or affiliates or directors, officers, Java Capital or any of its directors or employees or any other person as to the fairness, accuracy or completeness of the information or opinions contained in this presentation and no liability whatsoever for any loss howsoever arising from any use of this presentation or its contents

• therwise arising in connection therewith is accepted by any such person in relation to such information.

Disclaimer

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EPP Interim Results 2018

Appendices

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EPP Interim Results 2018

Why Poland?

In recent years, Poland has experienced GDP growth well above the EU average of 2.2%. This strong growth, combined with strong investor interest and an influx of Ukrainian workers to supplement the labour market will only further Poland’s standing amongst EU economies. High levels of private consumption support the growth in the economy. Warsaw in particular is experiencing the fastest growth of any city within the EU and appears to be set to continue to outpace other markets.

• Poland is the 6th largest European economy when puchasing power standards are considered

and 9th when volume of GDP is considered (current prices, milion euro) with a positive pace of growth, higher than other major European economies

• Between 2010 and 2017 Poland experienced 25% growth in GDP and 61% growth in exports.
• Warsaw is predicted to be Europe’s fastest-growing city by a large margin.
• High consumer confidence and continued increases in average household income has spurred

robust growth in private consumption which is expected to reach 4.0% in 2018.

• Q1’17 – Q1’18 the number of jobs in the business service sector increased by c.35,000 (i.e. by

13%) to over 279,000 people. By 2020 the sector is forecasted to employ c.340,000 people;

• 83 out of Fortune’s Global 500 investors have business services centres in Poland;
• 11th place – Poland’s global standing in terms of English language skills in the 2018 English

Proficiency Index survey;

• EUR 105.8bn of EU funds to be allocated to Poland between 2014 and 2020;
• Poland’s exports are expected to reach EUR 238.5bn in 2018 (up by 2.4% y-o-y);
• Attractive incentives for foreign investors (especially those from service sector, banking, R&D

and IT);

• PLN 500+ government programme (PLN 500 / month for second and each next child)

introduced in April 2016 has led to a considerable growth of retail sales.

2018 (f) 2019 (f) 2020 (f) Private consumption (%,yoy) 4.0% 3.6% 3.3% GDP growth (%, yoy) 4.6% 3.3% 3.0% Retail sales growth (%, yoy) 6.0% 4.2% 3.4% Consumer spending (%, yoy) 4.6% 3.3% 3.0% Average monthly salary growth 6.9% 7.0% 6.8% Inflation (%) 2.3% 2.6% 1.4% Unemployment rate (ILO definition, %) 4.3% 4.0% 3.6%

GDP growth in selected EU countries

0,0% 1,0% 2,0% 3,0% 4,0% 5,0% Poland UK France Germany EU28 2018 (f) 2019 (f) 2020 (f) Source: Oxford Economics, National Bank of Poland

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EPP Interim Results 2018

Poland – Stable and liquid market

Economic background Investment attractiveness Improving international rankings Outlook

• 6th biggest EU economy in terms of GDP

(current prices, milion purchasing power standards) and 9th when volume of GDP is considered (current prices, milion euro) ;

• 4.6% GDP growth expected in 2018
• 46.2% of GDP – public debt burden,

compared to EU average of 83.5%

• 2.1% inflation in 2018
• Low unemployment rate: currently 3.5%

(ILO definition, July 2018)

• Growing industrial production, retail sales

and domestic demand

• Healthy and well-capitalised, resilient

banking sector

• High supply of skilled, well-educated

workforce

• Relatively low cost of doing business

(wages and rents lower than most of EU)

• Geographic proximity to Western Europe:

borders Germany, Poland’s biggest trading partner, accounting for 26% of all Polish exports and 25% of all imports (2017)

• Special Economic Zones enabling tax

exemptions: Subject to application and receival of a permit. N.B. Any commitments made on application regarding CapEx and creation of jobs become obligations to be fulfilled by the company

• Growing manufacturing and services sector

with rapid growth in business process

• utsourcing (BPO) and shares services

centres (SSC)

• 27th in the world in Ease of Doing Business

ranking 2017 (World Bank) (SA ranked 82nd)

• 20th position in the Global Real Estate

Transparency Index and 11th in Europe. The top ten highly transparent real estate markets attract 75% of global investment. (SA ranked 21st)

• Regional leader in the outsourced IT and

BPO services. Krakow 1st position in Europe in the Emerging Outsourcing Destinations (9th in the world)

• Katowice Special Economic Zone: Winner
• f Europe’s best Free Zone 2017. Lodz

Special Economic Zone: Winner of Europe’s best SME Free Zone 2017 according to Global Free Zones of the Year 2017.

• 28th largest receiver of foreign direct

investment according to World Investment Report 2017

• Poland is seen as one of the most attractive

locations in the world for professional services

• It is anticipated that the growth in jobs and

consequential consumption will continue, thanks to high levels of FDI and investors entering the market

• As part of the acceleration of an established

trend, in the aftermath of Brexit, Poland is well placed to benefit as companies in the UK consider transferring part or all of their

• perations
• The stability and liquidity of the Polish

market will continue to attract investment

• The probability of yield compression in line

with convergence with developed Europe will provide an opportunity to increase asset values

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EPP Interim Results 2018

Focus on investment

• High levels of investor activity, driven largely by portfolio transactions
• In 2017, Poland received investment of approximated EUR 5.04bn.
• H1 2018 has seen high levels of investment in comparison to recent years with

H2 expected to follow suit. As a result, 2018 is forecast to be a record year for investment activity in Poland.

• Since 2014, the Polish office and retail markets have experienced compression
• f yields and as of 2016, they have stabilised at c. 5-5.5%.
• In regards to the CEE market, Poland accounts for the vast majority of the

investment in the region (42% in 2017).

*All types of properties, based on RCA data Source: Savills, RCA

Investment volume by sector in Poland (EUR million) Investment volume by region of origin in Poland Investment volume* in CEE

1 000 2 000 3 000 4 000 5 000 6 000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1 2018 EUR million Offices Retail Logistics Other 1 000 2 000 3 000 4 000 5 000 6 000 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1 2018 EUR million Domestic EU US AsiaPac Middle East South Africa Other 1 000 2 000 3 000 4 000 5 000 6 000 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1 2018 EUR million Domestic EU US AsiaPac Middle East South Africa Other

Top investors by volume of transactions finalised between 2015 – H1 2018

250 500 750 1 000 1 250 Volume (EUR million) Volume

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EPP Interim Results 2018

Investment activity volumes in 2017

• In 2017 the CEE region recorded investment volumes of €12bn; 7.0% up on 2016

and almost 80% above the 10 year average. In 2018 this figure is expected to rise to approximately €12.5bn.

• Poland’s transactional volume share amounts to 42%, followed by the Czech

Republic (30%), whilst Hungary and Romania accounted for 15% and 10% respectively.

• In 2018 the volume is expected to increase, with the regional GDP forecast to

expand by 4.0% compared to 2.2% in the rest of the EU.

• The retail sector dominates the market in terms of investment volumes (46%)

followed by offices (30%). Last year, industrial space accounted for 15% of the turnover compared with just 4% ten years ago and this share is expected to rise.

€5.04bn

€62.01bn €59.2bn €25.6bn €9.3bn €2.1bn €9.3bn €1.3bn €14.9bn €6.5bn €10bn €3.5bn €4.5bn €7.5bn €1.8bn €0.36bn €1.2bn

CEE Investment Volumes: 2017

Poland 42% Czechia 30% Hungary 15% Other 3% Romania 10%

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EPP Interim Results 2018

Portfolio location weighted by Fair Value

As at 30 June 2018

No Property City Retail GLA [m2] Fair Value 30 Jun 18 (m EUR] 1 Galaxy Szczecin 56,630 281.80 2 Pasaż Grunwaldzki Wrocław 48,352 257.30 3 Galeria Echo Kielce 71,830 225.10 4 M1 - Kraków Kraków 49,643 130.20 5 M1 - Czeladź Czeladź 53,648 129.50 6 Outlet Park Szczecin 28,283 95.30 7 Galeria Amber Kalisz 33,546 91.20 8 M1 - Zabrze Zabrze 52,775 82.00 9 Galeria Sudecka Jelenia Góra 30,268 58.60 10 Zakopianka Kraków 26,143 57.90 11 Galeria Solna Inowrocław 23,551 57.20 12 Galeria Olimpia Bełchatów 32,703 56.00 13 Twierdza Zamość Zamość 23,806 54.10 14 Wzorcownia Włocławek 25,423 52.10 15 Twierdza Kłodzko Kłodzko 23,039 49.50 16 Galeria Veneda Łomża 15,026 40.70 17 M1 - Łódź Łódź 38,388 39.40 18 Echo Centrum Przemysl Przemyśl 5,759 5.01 Total 638,815 1,763 No Property City Office GLA [m2] Fair Value 30 Jun 18 (m EUR] 19 Park Rozwoju Warsaw 33,559 71.40 20 Malta Office Park Poznań 28,268 59.70 21 O3 Business Campus Phase I Kraków 18,991 48.80 22 O3 Business Campus Phase II Kraków 18,960 46.20 23 Astra park Kielce 14,269 31.90 24 Oxygen Szczecin 13,924 27.90 25 Symetris Phase I Łódź 9,593 22.50 Total 137,486 308 No Property City Land area [m2] Fair Value 30 Jun 18 (m EUR] 26 Galeria Młociny Warsaw 51,037 262.90 27 T22 Warsaw 64,869 102.00

[16] Łomża [18] Przemyśl [9] Jelenia Góra

[20] Poznań

[18, 26] Łódź

Retail Office Development land

40 EUR m

Fair Value diagram scale:

[3, 23] Kielce

[19, 26, 27] Warsaw

[7] Kalisz [12] Bełchatów [13] Zamość [14] Włocławek [15] Kłodzko

[1, 6, 24] Szczecin [2] Wrocław

[4, 10, 21, 22] Kraków

[5] Inowrocław 66% 34% 88% 12% 93% 7 % 64% 36%

[5] M1 Czeladź [8] M1 Zabrze

16% 84 %

* Galeria Olimpia nad Echo centrum Bełchatów considered as a single unit – Galeria Olimpia

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EPP Interim Results 2018

New projects location

Tranche 1 - Acquired in January 2018 Tranches II and III

No Property GLA [m2] 1 M1 Czeladź 53,650 2 M1 Kraków 49,619 3 M1 Zabrze 52,775 4 M1 Łódź 38,370 Total 194,414 No Property GLA [m2] 5 M1 Bytom 28,200 6 M1 Częstochowa 29,900 7 M1 Radom 37,000 8 Power Park Olsztyn 32,500 9 Power Park Opole 20,700 10 Power Park Kielce 35,700 11 M1 Poznań 45,400 12 M1 Tychy 22,700 Total 252,100

Tranche I

Szczecin Łomża Warszawa Jelenia Góra Wrocław Przemyśl Bełchatów

Tranche II and III

Włocławek Zamość Kłodzko Kalisz Innowrocław

• 2. M1 Kraków
• 1. M1 Czeladź
• 3. M1 Zabrze
• 4. M1 Łódź
• 8. PP Olsztyn
• 11. M1 Poznań
• 9. PP Opole
• 5. M1 Bytom
• 12. M1 Tychy
• 6. M1 Częstochowa
• 7. M1 Radom
• 10. PP Kielce

Other EPP assets

Notes

www.epp-poland.com