Annual Financial Report

31 December 2014

Scentre Group Limited ABN 66 001 671 496

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Annual Financial Report

SCENTRE GROUP (1)

For the Financial Year ended 31 December 2014

Contents1 Directors Report 38 Independent Audit Report39 Income Statement40 Statement of Comprehensive Income41 Balance Sheet42 Statement of Changes in Equity43 Cash Flow Statement45 Notes to the Financial Statements108 Directors Declaration109 Corporate Governance Statement122 Investor Relations124 Members InformationIBC Directory

(1) Scentre Group comprises Scentre Group Limited and its controlled entities as defined in Note 2.

SCENTRE GROUP ANNUAL FINANCIAL REPORT 2014 // PAGE 1

The Directors of Scentre Group Limited (Company) submit the following report for the period 1 January 2014 to 31 December 2014 (Financial Year).

1. OPERATIONS AND ACTIVITIES1.1 Background to resultsOn 30 June 2014, Scentre Group (Group) was formed by the restructure of the Westfield Group and the merger of Westfield Groups Australian and New Zealand business operations with those of Westfield Retail Trust (Restructure and Merger).

In reviewing the results of the Group it is important to understand that the Restructure and Merger has a significant impact on the disclosure of the results. Consequently, the comparative and current period disclosure of the Groups results is not representative of the operations of the Group in the future.

The Groups results for the Financial Year include:

earnings from continuing operations (Australia and New Zealand operations of Westfield Group) for the Financial Year;

income from Scentre Group Trust 2 (formerly Westfield Retail Trust 1) and Scentre Group Trust 3 (formerly Westfield Retail Trust 2) for the 6 months to 31 December 2014; and

earnings from the discontinued operations (United States and United Kingdom operations of Westfield Group) for the 6 months to 30 June 2014.

The comparative period represents the full year results of the former Westfield Group.

Financing costs and tax expense reported in continuing and discontinued operations are based on costs included in the legal entities that remained in the respective operations. Accordingly, the reported expense is not the same as if the financing restructure occurred at the beginning of the Financial Year and it is not indicative of the future financing and tax costs of the restructured Group.

The focus of this report is on the financial results of the Group for the 6 month period to 31 December 2014. Operational results focus on the performance of the portfolio for the year ended 31 December 2014.

1.2 Financial resultsWe are pleased to report on the performance of the Group for the period from 1 July 2014 to 31 December 2014.

Profit after tax, funds from operations and distribution for the period (1)

1 July 2014 to 31 December 2014 $million

Net property income 901.3

Net project and management income 51.7

Overheads (49.0)

Currency loss (0.5)

Financing costs (252.4)

Interest on other financial liabilities (42.7)

Mark to market of derivatives and property-linked notes 96.7

Property revaluations 648.9

Tax expense (59.2)

Profit after tax (2) 1,294.8

Adjusted for:

Property revaluations (648.9)

Amortisation of tenant allowances 15.8

Net fair value loss of currency derivatives that do not qualify for hedge accounting 2.9

Net fair value gain on interest rate hedges that do not qualify for hedge accounting (116.9)

Net fair value loss on other financial liabilities 17.3

Deferred tax expense 18.9

Funds from operations attributable to external non controlling interests (6.0)

Funds from operations (FFO) (3) 577.9

Less: amount retained (36.1)

Dividend/distributions 541.8

FFO per security 10.88

Dividend/distribution per security 10.20

(1) The Groups income and expenses have been prepared on a proportionate basis. The proportionate basis presents the net income from equity accounted properties on a gross basis.

(2) The Groups profit after tax and non-controlling interests is detailed in Note 4(a)(i) of the financial statements.(3) A key measure of the financial performance of the Group is FFO. FFO is a widely recognised measure of the performance of real estate investments groups

by the property industry and is a useful measure of operating performance.

Directors Report

Directors Report (continued)

PAGE 2

The Group reported AIFRS profit of $1.3 billion for the 6 months ended 31 December 2014. This profit includes FFO earnings of $577.9 million (or 10.88 cents per security, on an annualised basis, in line with pro forma forecast), $648.9 million of property revaluations, $(15.8) million of tenant allowances amortisation, $96.7 million relating to the mark to market of derivatives and property-linked notes, $(18.9) million charge for deferred tax and $(6.0) million of FFO from external non-controlling interests.

The distribution for the 6 months ended 31 December 2014 is 10.20 cents per security which will be paid on 27 February 2015.

Net property income was $901.3 million for the 6 months ended 31 December 2014. The Groups portfolio achieved comparable net operating income (NOI) growth of 2.2% in Australia and New Zealand for the year ended 31 December 2014.

The analysis of the results has been completed on a proportionate basis as only 3 shopping centre investments are equity accounted. FFO earnings includes net property income (before the amortisation of tenant allowances), management and project income, corporate overheads, underlying net interest (excluding derivative mark to markets), currency gains (excluding mark to markets) and underlying taxation of the business (excluding deferred tax).

Property revaluations of $648.9 million for the 6 months ended 31 December 2014 have arisen from the revaluation of the portfolio during the period. This revaluation gain results from increases in net operating income, revaluation gains on completed centres and a small compression in capitalisation rates.

1.3 Operating environmentAt 31 December 2014, the portfolio was more than 99.5% leased, with average specialty retail sales in Australia increasing to $10,200 per square metre. For the 12 months ended 31 December 2014, comparable NOI across the Australian and New Zealand portfolio increased by 2.2%.(1)

The high quality shopping centres in the Groups portfolio have delivered excellent sales productivity, almost full occupancy and continued growth in average rents and comparable net property income reflecting the continued reinvestment into the portfolio and introduction of new retailers. There was sustained improvement in retail sales growth, with comparable specialty store sales in Australia up 3.6% both for the quarter and for the 12 months to 31 December 2014.

The introduction of new international retailers, together with the integration of food, fashion and entertainment experiences, combined with the greater use of digital technology as key trends which will underpin the strength and relevance of our existing centres and future redevelopments.

1.4 Development activitiesScentre Group has a vertically integrated development, design and construction platform representing one of the top 5 construction businesses in Australia. The Groups development activities are expected to deliver earnings accretion and create significant long term value.

In 2014, the Group completed the $410 million development at Westfield Garden City in Queensland and the major stage opening of the $475 million (Scentre Group share: $238 million) development at Westfield Miranda in New South Wales.

Scentre Groups development activity also included two design and construction projects that are being undertaken for AMP Capital. The $440 million development at Macquarie Centre, Sydney was opened in the second half of 2014, and the Group continues to make good progress on the $670 million development at Pacific Fair, Queensland that is expected to be completed in 2016.

The Group has an identified future development pipeline in excess of $3.0 billion, and in 2015 has already commenced new developments at Chatswood in Sydney and North Lakes in Queensland with a combined value of $190 million (Group share: $150 million).

1.5 Financing activitiesImmediately following the establishment of the Group on 30 June 2014, a successful A$3.1 billion 4-tranche debut bond offering was executed in the euromarkets, with strong investor support for the credit. The Group subsequently raised A$400 million from a domestic

bond issue and A$1.5 billion from two USD bond issues. The net proceeds from these new issues have all but refinanced the A$5 billion bridge facility established as part of the Restructure and Merger.

1.6 Comparative resultsAs noted, the comparative period represents the results of the former Westfield Group. Consequently, the comparative and current period disclosure of the Groups results is not representative of the operations of the Group in the future.

Property results from continuing operations (excluding Restructure and Merger costs) include a 52% increase in property revenue (on a proportionate basis) to $1.8 billion primarily as a result of the inclusion of the Scentre Group Trust 2 and Scentre Group Trust 3 earnings in the second half of the year and comparable NOI growth of 2.2%. NOI increased by 53% for the same period to $1.4 billion.

Profit after tax for continuing operations (excluding Restructure and Merger costs and on a