H Y S T E A D L I M I T E D Early Look March Presentation 2018 - PowerPoint PPT Presentation

H Y S T E A D L I M I T E D Early Look March Presentation 2018

Contents Hystead at a Glance 1 Relationship with Hyprop and PDI 6 Investment Case 2 Management Team 7 Macro-economic Comparison 3 Board of Directors 8 Portfolio Overview 4 Growth and Prospects 9 Financial Overview 5 Capital Raise 10 2 HYSTEAD LIM IT E D

Hystead at a Glance 1 High quality dominant shopping centres Six shopping centres in capital cities in SEE Hyprop and PDI are strategic shareholders Income growth Continental Europe with focus on SEE / Balkans Internally managed by in-country people (property management, asset management and executives) Listing in next 6 months 3 HYSTEAD LIM IT E D

Investment Case 2 Favourable macroeconomics in SEE • Markets catching up in terms of development to Western peers • EU member countries (or candidates for inclusion) • Strong macroeconomics and favourable retail environment • Stable currencies closely linked to Euro (or Euro itself) • Political stability • Well established property rights High quality properties • Large, dominant shopping centres in urban areas • Located in capital cities or main commercial hubs • Sustainable, growing income with contractual escalations • Flagship and international retailers with diverse offering Strong management • European based CEO, CFO and COO • Local on-site property management staff retained for continuity Strategic relationship with Hyprop and PDI • Skin in the game • Source of deal flow • Provision of capital • Support services Assets to be acquired or developed at attractive yields with significant potential for yield compression 4 HYSTEAD LIM IT E D

Macroeconomic Comparison 3 Unemployment (1) Inflation (2) Nominal GDP per Capita USD % % Real GDP Growth Government Bond Yields Credit Ratings % % S&P Moody’s Fitch Croatia BB (positive) Ba2 (stable) BB+ (stable) Serbia BB- (stable) Ba3 (stable) BB- (stable) Montenegro B+ (negative) B1 (negative) - Bulgaria Baa2 (stable) BB+ (positive) BBB- (positive) FYR Macedonia BB- (stable) - BB (negative) South Africa BB+ (negative) BB+ (stable) Baa3 (negative) Source: IMF WEO database – Oct-17 Note: (1) Data for Montenegro and EU not available (2) Reflects annual average rates 5 HYSTEAD LIM IT E D

Portfolio Overview 4 Sofia, Zagreb, Zagreb, Belgrade, Skopje, Podgorica, EUR million Bulgaria Croatia Croatia Serbia Macedonia Montenegro CCO CCO Skopje City Property name The Mall Delta City Delta City West East Mall Acquisition date Oct-17 Mar-18 Mar-18 Apr-16 Oct-16 Feb-16 Croatia Ownership % 100 (3) 90 (3) 90 100 100 100 Valuation (1)(4) 160 146 135 130 93 77 Serbia % of total 21.6 19.7 18.2 17.5 12.6 10.4 Bulgaria GLA (m²) (5) 51 211 46 759 48 574 29 850 37 000 23 245 % of total 21.6 19.8 20.6 12.6 15.6 9.8 Montenegro Stores 182 140 140 124 135 80 Macedonia Occupancy rate 99.2 99.9 99.5 100.0 100.0 100.0 % (1) WALE (years) (2) 5.0 6.0 6.5 4.9 4.3 5.0 Weighted ave. 18 15 16 30 19 22 rental (EUR/m²) Notes: (1) As at 31-Dec-17 (2) Weighted based on GLA (3) 10% held by WKB3 GmbH, an Austrian company associated with the property manager of the Croatian properties, CC Real (4) Weighted for ownership % (5) Excludes seating area of 483m² 6 HYSTEAD LIM IT E D

Financial Overview 5 Weighted ave. cost of Target LTV (3) at listing GAV (1) debt EUR741 million c.35% 3.9% Leases indexed Euro based or WALE to CPI or fixed linked lea ses escalations 5.4 years 99% 72% Notes: (1) Weighted for ownership (2) Attributable to Hystead shareholders (i.e. excl. minorities) (3) Calculated based on GAV and proportional gross debt (i.e. weighted for ownership) 7 HYSTEAD LIM IT E D

Relationship with Hyprop and PDI 6  Long-term strategic relationships with founders Hyprop and PDI (associated with Louis Norval)  Hyprop and PDI have extensive real estate and shopping centre experience, and proven track records in South Africa and SEE Strategic  Hyprop and PDI currently own 60% and 40% of Hystead, respectively, and will invest c.EUR240 million on listing Relationship  Hyprop and PDI will retain meaningful equity stakes (49% and 12%, respectively) in Hystead post-listing and it is their intention to hold such stakes in the long-term  Neither Hyprop nor PDI will realise any cash on listing  Hyprop and PDI may not dispose of any Hystead shares in the first year after JSE listing Lock-ins  For the first three years after listing Hyprop’s and PDI’s shareholding may not drop below 30% and 5%, respectively  For a minimum period of three years from listing, all shopping centre investment opportunities Exclusivity within continental Europe available to Hyprop or PDI must be referred to and pursued exclusively via Hystead  Hystead may (if it so requires and Hyprop is able) obtain certain back-office, financial, Supplementary administrative and other support from Hyprop, on a cost-recovery + a nominal margin basis support  The arrangement may be terminated on three months’ notice and without any penalties 8 8 HYSTEAD LIM IT E D

Management Team 7 Executive Management Executive and Asset Management • Three senior, experienced executives, based in Europe Property management (excl. Croatia) • Internally managed by Hystead • Experienced in-country teams retained • 70 employees Property management (Croatia) Alex Papageorgiou Rabia Shihab Yvette vd Merwe • Outsourced to CC Real (1) CEO CFO COO • CC Real has more than 140 employees and strong on-site staff with local expertise in Croatia On-site Management West East Sofia, Belgrade, Podgorica, Zagreb, Zagreb, Bulgaria Serbia Montenegro Croatia Croatia Macedonia The Mall CCO West CCO East Delta City Skopje City Mall Delta City Staff 23 5 (3) 5 (3) 18 (2) 22 4 General manager Vladimir Kolev Helena Krstulovic (3) Marin Simic (3) Zorana Lazarevic Ebru Radevski Zorica Miskovic Pavicevic Financial manager Vesselin Glavchev Neda Buljevic-Vlacic (3) (4) Marko Grudic Aleksandar Lesovski Stanka Jovanović Neda Buljevic Vlacic (3) (4) ) Operations manager Nikolay Geshev Kruno Belic (3) Petar Miric (3) Zoran Rankovic Toma Argir Boban Adžić Leasing manager Dimitar Kiferov Krunoslav Dominikovic (3) Krunoslav Dominikovic (3) Maja Pavlovic Olga Dervendzi Maja Pavlovic Marketing manager Tsvetelina Vladimirova Anamarija Persin (3) Ivana Matijašević (3) Dijana Hrubik Darko Pancevski Dragan Perišić Notes: (1) CC Real has been providing management services since the malls opened. CC Real was the developer of the Croatian properties (2) Includes two part-time staff members (3) Staff employed by CC Real. Reflects onsite staff only and excludes CC Real’s central overhead team that also provides support (4) Neda is the Executive Director of Finance for CC Real, and has a team of 8 people supporting her 9 HYSTEAD LIM IT E D