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Investor presentation - May 2013 Focus, scale and quality set us apart Lakeside Trafford Centre Metrocentre Page 2 Focus, scale and quality set us apart 10 of the UKs top 25 centres, 16 in total More top shopping centres than any


  1. Investor presentation - May 2013

  2. Focus, scale and quality set us apart Lakeside Trafford Centre Metrocentre Page 2

  3. Focus, scale and quality set us apart • 10 of the UK’s top 25 centres, 16 in total • More top shopping centres than any other operator • Two thirds of UK population within 45 minute drive • 320 million annual customer visits (2012) – 30 million, half of UK population, visited an – 30 million, half of UK population, visited an Intu centre in 2012 • 17 million sq ft of prime retail • 95% occupancy (March 2013) Page 3

  4. The most specialised of major UK REITs • £7.3 billion prime shopping centre assets • 66% super-regional centres, 33% town and city centres • £3.2 billion market capitalisation • Strong family ownership • Long term approach Page 4

  5. Providing great retail and leisure experiences Page 5

  6. Retail property market context Structural shift of UK retail Minimal new supply • �������������������������������������� • ����������������������������������� ��������������������������������������� ����������������������������������������� • ���������������������������������� �������� ��������������������� • ������������������������������������ �������������������� Page 6

  7. Becoming digitally connected Page 7

  8. Enhancing our dynamic retail and leisure destinations Page 8

  9. £1 billion investment pipeline over 10 years Page 9

  10. Active management - creating destinations Focus on catering and leisure – why? • Extends shopping hours, dwell time and potential spend • Widens the catchment • Increases the reasons to visit • Whole shopping trip experience – the day out – the day out • Strong demand for restaurant units – sustainable trend – high footfall locations ideal for operators • Supports the retail offer – complementary tone, e.g. 360 Champagne Bar, Platinum Mall, Metrocentre (pictured) Slide 10

  11. Intu’s catering strategy • Increase the space The mix – key catering categories – Reconfigure or convert e.g. Braehead, Eldon Square � ��������!��������������� � ��������!��������������� � ��������!��������������� � ��������!��������������� – New build e.g. MetrOasis at "#$% "#$% "#$% "#$% Metrocentre and The Potteries, ����������� ����������� ����������� ����������� Stoke-on-Trent ����������� ����������� ����������� ����������� • Re-balance the mix (see chart) – to optimise spend per head and "&$ "&$ "&$ "&$ enhance dwell time e.g. ������ ������ ������ ������ Chapelfield, Metrocentre Qube ����������� ����������� ����������� ����������� Phase II • Enhance the clarity of offer and zoning "($ "($ "($ "($ '��������� '��������� '��������� '��������� '��� '��� '��� '��� – clusters appropriate for some ��������� ��������� ��������� ��������� categories ������� ������� ������� ������� – impulse offer spread through malls ���������� ���������� ���������� ���������� • Increase range and depth of offer ()���� ()���� ()���� ()���� #$���� #$���� #$���� #$���� *)�������������������+$%����� *)�������������������+$%����� *)�������������������+$%����� *)�������������������+$%����� – new concepts – pursue changes • Ambience and experience Slide 11

  12. First quarter statement 2013 Page 12

  13. Acquisition – Midsummer Place, Milton Keynes Overview • c.420,000 sq ft modern, prime shopping centre • Milton Keynes’ premier retail offer • Cash consideration of £250.5 million before expenses • 5.1 per cent NIY; 5.5 per cent NEY • Net rents of £13.4 million • Expected to be neutral to underlying earnings • Weighted average unexpired lease term in excess of 6 years • 91 per cent of income secured against national and international retailers Page 13

  14. 8 May 2013 trading update • UK retail environment remains difficult – retailers cautious with store commitments • Intu’s centres continue to out-perform national benchmarks and attract new brands and flagship stores • Tenant failures and lease expiries • continue to affect short term earnings • Footfall down 1% vs. Experian national benchmark down 4% • Occupancy 95% • 33 new long term leases signed Q1, £8m new passing rent, 2% above previous Page 14

  15. New debt funding platform BONDS £450m 2023 Flexible, ring-fenced security pool £1.15 b £350m 2028 new debt Term Loan £350m 2018 Value: £2.3 b • refinanced 1/3 of group’s debt • 50% loan to value achieved at competitive margins • highly successful ‘A’ rated bond issue • diversifies sources of funding • blended 4.4% cost • weighted maturity extended from two years to ten years. Group average now eight years • significantly derisked 2015-2017 maturities Page 15

  16. Bond issue significantly extends debt maturity profile Weighted average maturity c 8 years (was 6 years) 1,000 900 800 ayments (£'m) 700 600 500 Annual repa 400 300 200 100 - 2013 2014 2015 2016 2017 2018 2019-2023 2024-2028 2029+ 31 December 2012 as reported Pro forma, adjusted for 2013 refinancing Page 16

  17. Appendix Page 17

  18. UK’s top ranked shopping centres Centre Location Centre Location 1 Westfield London London – Shepherds Bush 21 Festival Place Basingstoke 2 Bluewater Greenhithe 22 Braehead Glasgow 3 Westfield Stratford City London - Stratford 23 The Glades Bromley 4 Meadowhall Sheffield 24 Silverburn Glasgow 5 Trafford Centre Manchester 25 Eldon Square Newcastle 6 Metrocentre Gateshead 26 Victoria Square Belfast 7 Lakeside Thurrock 27 Cabot Place, One Canada Square London 8 Liverpool One Liverpool 28 White Rose Shopping Centre Leeds 9 St David's Cardiff 29 Churchill Square Brighton 10 The Mall at Cribbs Causeway Bristol 30 Buchanan Galleries Glasgow 11 11 Bull Ring Bull Ring Birmingham Birmingham 31 31 East Kilbride Shopping Centre East Kilbride Shopping Centre Glasgow Glasgow 12 Arndale Manchester 32 Chapelfield Norwich 13 Cabot Circus Bristol 33 Golden Square Warrington 14 Westfield Merry Hill Brierley Hill 34 The Oracle Reading 15 Westfield Derby Derby 35 Touchwood Solihull 16 Highcross Leicester Leicester 17 Brent Cross Shopping Centre London 38 Victoria Centre Nottingham 18 thecentre: mk Milton Keynes ** 49 The Potteries Stoke-on-Trent 19 The Harlequin Watford 74 The Chimes Uxbridge 20 West Quay Southampton 149 Broadmarsh Nottingham Source: PMA * Top shopping centres on basis of PMA Retail Score (2012). Intu shopping centres highlighted ** Adjoined by Midsummer Place, acquired by Intu in March 2013 Page 18

  19. Yield comparisons • Prime UK shopping centres - attractive asset class for major international investors • Wide spread relative to risk free rate and corporate bonds Page 19

  20. 31 December 2012 - robust financial position Net debt to assets 49.5% 31 December 2012 31 December 2011 Total properties £7,073m £6,960m Net external debt £(3,504)m £(3,374)m Net debt to assets 49.5% 48.5% Cash £188m £91m Undrawn committed corporate facilities £375m £330m Net assets £3,006m £2,946m Adjusted net assets per share 392p 391p Weighted average cost of gross debt 5.2% 5.6% Weighted average maturity of gross debt 6.1 years 7.0 years Page 20

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