26 boulevard des Capucines CS 20062 75 009 PARIS – France Tel.: + 33 (0)1 40 67 57 40 French corporation (Société Anonyme) with Executive Board and Supervisory Board Registered capital of 440,098,448.20 euros Paris Trade and Companies Register (RCS) No. 780 152 914 www.klepierre.com

Photo credits : Julien Magre /75—W, Michel Labelle, Klépierre Picture Library. Design & production : M&C Saatchi Little Stories www.mcslittlestories.com

Retail only Klépierre 2014 Essentials

2014 E S S E N T I A L S

With retail facilities in 57 metropolitan areas spanning 16 countries, and privileged access to 150 million consumers, Klépierre is Continental Europe’s specialist in shopping center properties. Its property portfolio was valued at 21.4 billion euros on December 31, 2014. For leading retailers, Klépierre offers an unrivaled platform of shopping centers, which draw more than 1.2 billion visitors each year.

R E TA I L O N LY — K L E P I E R R E

01 Editorial Laurent Morel 02—03 Key figures 04—05 The efficiency of a retail-only model 06—07 Keep retail moving forward

08—09 An ambitious development program 10 Putting digital to work for retail 11 Klépierre’s Good Choices®

“Our offer is innovative, flexible, and consistent across Europe: this is precisely what retailers are looking for when they scout and select locations.” Laurent Morel, Chairman of the Executive Board

“Klépierre is now the undisputed shopping center specialist in Continental Europe”

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01

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Emporia, Malmö, Sweden 02

St.Lazare, Paris, France

In 2014, Klépierre accelerated the rollout of its strategic focus on shopping centers, with the aim of becoming the leading pure player in Europe. In parallel, we have focused on destination shopping centers located in urban areas that are undergoing rapid demographic growth and that are well-connected to infrastructures. While our business involves ensuring that a steady flow of visitors reaches our retail tenants, our responsibility is to support their development by proposing premium locations and the best possible mix of nationwide and global retail brands. Our capacity to anticipate how the retail landscape is evolving sets us apart – and this capacity in turn hinges on a corporate culture based on deep knowledge of what retailers are looking for.

A winning fit

www.klepierre.com KLEPIERRE

With the integration of the Dutch player Corio, Klépierre is positioned as the undisputed specialist in shopping centers and the leader in Europe. Our size now gives us

“Being a specialist allows us to be better: better at selecting our assets and better at optimizing, managing and leasing our portfolio of assets.”

the resources needed to pursue our growth and step up the pace of our program to upgrade our assets. Officially completed on March 31, 2015, it is part of a broader strategy of overall complementarity, not just geographic and in terms of assets but also operational, and it is facilitating the dissemination of best practices.

Partner of choice for retail brands The quality and coherence of the Klépierre portfolio, combined with expertise of the f irst rank in the f ield of shopping centers, represent a ver y compelling value proposition for retailers. Innovative, f lexible, and consistent across Europe, Klépierre’s offer opens up new opportunities for growth in our various markets. This is what drives the Group as it continues to improve its performances, the quality of its teams and its management in order to ensure operational excellence for retailers. KLEPIERRE.COM

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2014 E S S E N T I A L S

Shopping center breakdown by region (value of holdings excluding transfer duties)

01. 02. 03. 04. 05. 06. 07.

France-Belgium: 39.1% Scandinavia: 16.8% Italy: 16.2% The Netherlands: 8.3% Iberia : 6.3% Germany: 5.2% Others: 8.1%

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The Group’s portfolio is perfectly positioned to offer the best growth performances and outperform the sector.

Key figures(01)

178 €21.4 Bn 1.2   Bn €1,240  M shopping centers

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total value of property portfolio on 12/31/2014 02 03

visitors in 2014

total gross rents

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07

06

05

Proforma after the acquisition of Corio in January 2105. Value of holdings including transfer duties.

(01)

Leading centers in Continental Europe Klépierre shopping centers give retailers access to nearly 150 million consumers living in the most promising catchment areas.

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01 • France Paris, Bordeaux, Toulouse, Montpellier, Lyon, Marseille 02 • Belgium Brussels 03 • Sweden Malmö, Gothenburg, Örebro 04 • Norway Oslo, Bergen, Stavanger, Larvik 05 • Denmark Copenhagen, Aarhus, Vejle

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06 • Italy Milan, Rome, Venice, Turin, Naples, Bologna 07 • The Netherlands Amsterdam, Utrecht, Rotterdam 08 • Spain Madrid, Barcelona, Tenerife, Valencia 09 • Portugal Lisbon, Porto, Portimão

10 • Germany Berlin, Dresden

 07  02

11 • Turquie Istanbul, Ankara 12 • Czech Republic Prague 13 • Poland Warsaw, Krakow, Poznan 14 • Hungary Budapest 15 • Slovakia Bratislava 16 • Greece Thessaloniki

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15 14

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 08

16

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To download the complete 2014 financial report, go to: www.klepierre.com/ en/finance/investorrelations/reports/ KLEPIERRE.COM

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2014 E S S E N T I A L S

R E TA I L O N LY — K L E P I E R R E

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The efficiency of a retail-only model

La Gavia, Madrid, Spain

Growth opportunities for leading retailers

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Emporia Malmö, Sweden

Via the platform, Klépierre offers a genuine development partnership to the best retailers. From the perspective of a medium to long-term Wvision, they can negotiate globally for the most suitable locations across a portfolio of more than a hundred shopping centers. With respect to the rollout of their

Klépierre alone offers leading shopping destinations in 57 European metropolises. They open up new development opportunities for the best retailers, in their domestic market and internationally.

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Anticipation, the key to a rapidly evolving market To adapt to the needs and expectations of retailers and consumers alike, the Group manages its assets proactively. Klépierre has specific ambitions for each of its shopping centers, detailed in a five-year action plan. Updated once a year, the plan brings f lexibility and responsive lease and re-tenanting management to the commercial offering, while also ensuring that the customer’s shopping and purchasing experience remains rich and vibrant. Specif ic objectives are set for each theme and the organization’s full array of skills is mobilized to roll out this ambition. The world of retail is subject to increasingly ephemeral fashions and trends, as well as to the growing role that the internet plays in purchasing practices. To survive, a shopping center must be in sync with the habits and expectations of nomadic yet connected consumers. Continuous adaptation of the merchandising mix is thus one of the preconditions of success. Striking just the right balance between the historic retail powerhouses, the new concepts, and the exclusive brands is part of the process of accelerated retail rotation. Through regular portfolio reviews, Klépierre has forged trust-based relationships with its retail tenants. Its in-depth knowledge of domestic markets, combined with its capacity to analyze new consumer trends allows Klépierre to anticipate, identifying the unique concepts that will be the leaders of tomorrow. 04

strategy, this offers them the guarantee of controlled that supports revenue growth. Above and beyond the Group’s size and its retail-only model, Klépierre makes a real effort to respond to the demands of retailers, which expect a high level of professionalism and a faultless capacity for executing their development plans.

KLEPIERRE

“Owning the most relevant assets in their catchment area: that's the winning model.” Jean-Marc Jestin, COO “The size of the property portfolio is important in two respects: in terms of the relationship with leading retailers, and on the financial level, in terms of market capitalization and access to capital markets.” Jean-Michel Gault, Deputy CEO

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Maremagnum, Barcelona, Spain

Leveraging growth through international expansion

A highly selective development strategy

Present in 16 countries, Klépierre is gaining in visibility and appeal, particularly with respect to global retailers. The stepped-up international expansion of its portfolio has strengthened the Group’s leadership in several countries and boosted its knowledge of Europe’s major retail catchment areas. In Italy, Klépierre has become the leading player, offering a unique portfolio of destination shopping center assets. Klépierre is also the leader in both the Netherlands and Scandinavia, two territories that boast high purchasing power. It has consolidated its positions in France and in Iberia; and its platform has been expanded to include Germany, Europe’s biggest economy, and Turkey, a growth market.

The Group supports an ambitious development program  worth  3  billion euros, with  most of the projects located  in France, Scandinavia, and the Netherlands. In the interest of further enhancing the value of its assets, Klépierre is putting in place a strategy of upgrading the quality of its portfolio that meets the current demands of retailers. Klépierre’s priority is to refurbish and upgrade the existing shopping center assets in order to create or maintain uncontested leaders in their catchment areas. Accordingly, most of the projects involve extensions and/or refurbishments. By expanding the available retail space, the Group can accommodate new tenants that will help to refresh the retail mix. The Group also knows how to seize any opportunity that meets its selection criteria, whether it is a new project for development or an acquisition.

Leading centers in leading regions The top-performing retail brands are demanding and carefully select the locations that offer the best potential. Attentive to their needs, Klépierre focuses on Europe’s most dynamic   a nd   well-connected urban   areas. Every   l a rge   metropolitan area is confronted with the challenges of mobility and the energy transition. The quality of mass  transit  access  and   connections   is   a   decisive  criterion  for Klépierre, of the same magnitude as the level of purchasing power, the demographic energy, and the competitive landscape.

+ 2.6%

That’s the average increase in retailer revenues in 2014 on a like-for-like basis

97.0%

That’s the occupancy rate for shopping center assets on 12/31/2014

1.2 billion that’s the number of visitors to Klépierre centers at year-end 2014. 05

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Tarsus, Tarsu, Turkey 05

Plelinulio, Madrid, Spain KLEPIERRE.COM

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2014 E S S E N T I A L S

Keep Retail Moving Forward

R E TA I L O N LY — K L E P I E R R E

Click here for complete information about Klépierre in 2014: www.klepierre.com/ ra2014

Discover what the major retailers are selling at Klépierre shopping centers: www.klepierre.com/ ra2014/#leading brands

Relive the highlights of 2014 in images at: www.klepierre.com/ ra2014/#lookback

With its strategic transformation and retailonly refocus, Klépierre has become a retail powerhouse in just a few years. What sets the Group apart is its commitment to innovation focused on enhancing the retail purchasing experience, for customers and retailers alike. Today, Klépierre shopping centers are much more than places of commerce: they are places where people meet, interact and enjoy life. This creative added value is Klépierre’s signature and also what has made it an innovative and vital force in retail.

Rendezvous with successful brands

Continuously renewed merchandising mix

The selection of top-performing brands and the rotation of retailers ensure that the offer is constantly fresh and optimizes locations to create traffic.

It results from the alchemy between the leading fashion brands, those that create the buzz, unique concepts, and the must-haves.

33%

That’s the contribution of apparel/ready-to-wear retailers to Klépierre’s total rents

10%

That’s the contribution of restaurants and cafés to Klépierre’s total rents

The ClubStore® spirit, the success of a unique concept Make the shopping center a place where people meet and interact for a unique shopping experience. That’s how the exclusive ClubStore® concept was born. Customers love it.

Let’s Play®, making shopping a game The shopping center is a new place for customers to relax, have fun, laugh. On the agenda: exciting moments, inventive style, free and exclusive brand animations, etc.

Say no to stress, yes to emotion! Each shopping center has a personality reflected in specific design features and services – Club Lounge, library, curiosity cabinets, and play areas for kids – that gives it a little bit of soul. Hospitality, safety, cleanliness and purchasing comfort contribute to customer well-being.

From virtual to real The websites for Klépierre shopping centers are getting a facelift in order to effectively showcase brands, their products and their promotions. As an added benefit, customer experience is enriched and the stay extended.

Only at Klépierre

95% 55%

of customers applaud the ClubStore® concept

of customers say they feel better in the shopping center thanks to ClubStore®

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shopping centers across Europe will roll out the Let’s Play® concept in 2015

60

websites on a single new generation platform in 2015 first quarter

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2014 E S S E N T I A L S

R E TA I L O N LY — K L E P I E R R E

An ambitious development program

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03–04

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Le Prado, Marseille, France 05–06

Hoog Catherijne, Utrecht, The Netherlands

Of all the projects inscribed in the Klépierre development pipeline, 4 illustrate particularly well their shared vision of upgrading the portfolio in the most promising retail catchment areas.

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Val d’Europe, a spectacular metamorphosis

Situated 40 minutes from Paris, with Disneyland Paris® close-by, Val d’Europe is an exceptional shopping center ideally accessible by car and by train – both the regional RER and the TGV high-speed rail lines. Since it opened, this center has posted the most dynamic retail grow th in France, attracting more than 16 million visitors a year. In 2017, with its revisited customer experience, Val d’Europe will reinforce its leadership with the addition of several new global retailers, including Primark and Uniqlo. The extension project is anchored around a majestic glass canopy that looms over a monumental square. Over more than 17,000 sq.m., 29 stores will join the 160 shops that already cover the existing 120,000 sq.m. space. Parking capacity will also increase to accommodate the growing number of shoppers. Work on the project began in early June of 2014. Field’s

7.2 M

For more information: www.klepierre.com/en/centres/val-deurope/

visitors a year 01

79 ,300 sq.m.

8 ,500

sq.m. of additional space

3 ,000

parking slots

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Val d’Europe, Marne-la-Vallée, France 02

Field’s, Copenhagen, Denmark KLEPIERRE

Le Prado intends to become Marseille’s “must visit” shopping destination

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A regional center that draws international visitors, located in the heart of Europe’s number one tourist destination

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Le Prado in Marseille, an emblematic destination

Field’s, Denmark’s emblematic shopping center, gets a refurbishment-extension The preferred destination of Denmark’s shoppers gets a complete facelift In the heart of Greater Copenhagen, Field’s imposing architecture is a perfect alliance  of  Scandinavian  design and comfort. Just a 10-minute trip from the Danish capital by subway, train, bus or car, with direct freeway access, this shopping center – with its 150 retailers, 15  coffee shops and restaurants, 2 levels of parking, play areas for kids, and a fi tness space for adults – is Denmark’s preferred shopping destination. The 8,500 sq.m. extension will enhance the retail mix with a 9-screen multiplex and the quality of customer care thanks to the rollout of the latest Klépierre ClubStore® and Let’s Play® concepts. Opening scheduled for the second quarter of 2015.

For more information: www.klepierre.com/en/centres/fields/

In November, Klépierre entered into an agreement to acquire a 60% stake in Massalia Shopping Mall, the investment company in charge of developing Le Prado shopping center. This new shopping center, which extends over 4 levels, is ideally located in the very heart of Marseille, France’s second largest city. Near the Vélodrome stadium and the beaches, the facility enjoys unrivaled accessibility: the point of convergence for several subway lines, it is also served by 13 bus lines and a tunnel that links the 3 main freeways going in and out of the city. Le Prado will feature around fifty stores, including the premium department store anchor Galeries Lafayette, which has already signed a nine-year lease on a 9,400 sq.m. space. The best international retailers are expected to follow suit, attracted by the catchment area’s wealth and population density, not to mention the project’s environmental aspect. The center has been designed to receive a BREEAM rating of excellent for its environmental performance and is expected to be ready to open in the second half of 2017.

For more information: www.klepierre.com/en/centres/prado-2/

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Hoog Catherijne, an ambitious project in Utrecht This leading urban project in the Netherlands offers a perfect illustration of Klépierre's development criteria Hoog Catherijne is a shopping center located in Utrecht, a city in the center of the country. Directly linked to the station, it attracts nearly 26 million visitors a year. The extension-refurbishment project is part of a vast urban renewal plan that also calls for an expansion of the train station that will enable the latter to accommodate 100  million passengers a year by 2030, compared with 65 million today. Access to the shopping center will be further improved by an overhaul of the bus station and light rail system. Movie theaters, several towers and a casino will also enhance this shopping destination.

Hoog Catherijne

26 M

visitors a year

89,500 sq.m.

100 M

passengers in 2030 for the refurbished and expanded station

For more information: www.klepierre.com/en/centres/hoog-catharijne/

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2014 E S S E N T I A L S

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Passages, BoulogneBillancourt, France

68%

of the portfolio equipped with energy consumption measurement system

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Emporia, Malmö, Sweden

Putting digital to work for retail

5.3M

Energy bill lowered by 5.3 million euros over two years “Sustainable development starts in the field with operational excellence.” Christophe Moureaux, Head of Sustainable Development

In the digital era, retail is being transformed and is reinventing itself. The relationship between brands and consumers is enhanced by a virtual dialogue. As a seasoned specialist, Klépierre anticipates and supports this multiplicity of virtual and physical experiences.

Online catalogue

Connected directories

Digital screens

Shopping center websites are getting a makeover and showcasing their retail offer: online catalogues for retail tenants, news on the latest trends, gift ideas, special retail offers. All content is managed via a shared digital platform.

Connected to the digital platform, these information touchscreens located in shopping centers help shoppers find their favorite brands and find out what’s currently happening.

Nearly 700 connections in 3 days for the Let’s Play® game at Val d’Europe in December. Equipped with a smartphone transformed into a remote control device, the customer browses Clear Channel digital totems in a dream world looking for a gift card.

Click & Collect Buy online and pick up the purchase at the shopping center – at the reception desk, the automatic consignment service or the Pickup Store – it’s simple, practical, and a big hit with (e-)shoppers. In addition to Click & Collect, the Pickup Store has a lounge, a shopping space and a service area.

50%

of the total traffic to Klépierre shopping center websites is via a smartphone or a tablet device

35%

is the global monthly increase in online audience from one year to the next after launch

Play Box Shoppers put their smartphone in the Play Box (mobi rider®) and, without having to provide their number, they get a text message in just a few seconds that allows them to download the center’s app so they can play and win goodies and gift cards. The shopping experience version of Let’s Play®.

Q1 2016

100

leading shopping centers connected to the new webplatform of the Group

Klépierre’s Good Choices

A pragmatic approach, continuous projects Using a continuous improvement approach, Klépierre strives to be exemplar y in order to ensure, for the visitors and employees who frequent its shopping centers, a safe environment thanks to irreproachable management of its assets. The Group sets ambitious, measurable objectives to improve its eff iciency and energy mix. It is also constantly on the lookout for innovations and best practices that help to ensure that its shopping centers have a positive footprint in t he loca l com mu n it ies t hey ser ve. Accord i ng ly, accessibility and the quality of their connection with mass transit are important considerations. Visitor breakdown by means of transportation used 17% of visitors walk or ride a bike (+1% vs. 2013)

82/100 30% vs. 2012 Co-leader in Europe

Klépierre’s approach is based on strong convictions: 1 — t he best environmental performance is the result of operational excellence in the daily management of assets; 2 — shopping centers that are well integrated into their settings, with a positive local footprint, are also the most appealing to retailers and visitors; 3 — the development of talents and skills ensures collective performance and dynamism. On the strength of such convictions, the Group is committed to irreproachability, efficiency, and innovation. The Good Choices® concept shapes its strategy and defines the content of action plans.

Innovative and targeted responses  

The choices that guide the Group in the area of CSR are consistent with a vision that is resolutely business based and as close as possible to daily management of shopping centers.

DJSI

Environmental, social and societal performance is the result operational excellence.

For more information: www.klepierre.com/en/sustainable-development/ operational-excellence/our-objectives/

®

Extra-financial ratings Best in class

A strong ambition, clear objectives

For more information, go to: www.klepierre.com/en/sustainable-development/ environmental-responsibility/

02 in France 23% of visitors use public transportation (+3% vs. 2013)

GRESB

78/100 59% vs. 2012

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World Retail

60 % of visitors drive (-4% vs. 2013)

KLEPIERRE.COM

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You are…

A shareholder, an investor, an analyst Find all the information, financial press releases and results, stock prices, legal disclosures, etc., as well as your Klépierre contacts at: www.klepierre.com/ en/finance

A retailer, a marketing manager, a retail professional Read on to discover the latest news about the events and promotions at our shopping centers. An unrivaled virtual glimpse, spanning Europe, into the world of a shopping center pure player. www.klepierre.com/en/ retail-news To contact one of our leasing professionals: www.klepierre.com/ en/property

Extend the experience online

An experienced jobseeker, a recent graduate You are invited to check out the career corner, where you will discover our ambitions and our values, exciting jobs in retail real estate that you aspire to, and the excellent course offering at our corporate learning center Klépierre University. What are you waiting for? Connect with us now: www.klepierre.com/en/careers

Don’t miss a minute of the Klépierre experience! Go to: www.klepierre. com/ra2014/en

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To download the entire 2014 annual report, go to: www.klepierre.com/ en/publicationof-the-2014-annualreport-discover-theklepierre-experience