Bicester Village & Bullring Thriving retail destinations

26 September 2012

Today’s Agenda

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Introduction David Atkins Value Retail presentation Scott Malkin and Timon Drakesmith Hammerson update David Atkins Travel to Bullring Lunch Browns Restaurant Bullring presentation Martin Plocica

Our vision is to be the best owner-manager and developer of retail property within Europe

By capitalising on our strengths we aim to provide

industry-leading shareholder returns

Vision

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19.3

2011

Hammerson and Value Retail

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19.3

2011

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1998-2001 £22.6m investment in Bicester Village LPs, gaining 33% economic interest

2001-2002 £10.0m initial investment for 7.4% interest at holding company level

2002-2008 £7.3m phased acquisition of minority interests at Wertheim, Kildare, La Roca, Las Rozas & Fidenza

2007 £21.0m investment for a further 4.8% of holding company interests

2011 £24.7m invested in ‘LP’ interests at La Roca, Las Rozas, Maasmechelen, Fidenza & Wertheim

2012 £78.3m invested in holding company interests , increasing loan to VR to €58 million

A mutually beneficial relationship

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163

51 47

£407 million

Bicester Village Holding companies

European villages Loan to Value Retail

Scott Malkin Founder & Chairman Value Retail

Why do outlets exist?

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Fashion brands have surplus stock and

need an efficient means to deal with it in a way which does not compromise their integrity and image

Why do outlets exist?

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How does Value Retail service this need?

The Value Retail Villages provide a high quality sales environment for goods that are: • Authentic • At least one year old • Same season • Sold at a 33% - 70% discount to full price

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Where are the European Villages? LOCATIONS TOTAL CATCHMENT THE COLLECTION

Carefully selected based on proximity to Europe’s wealthiest cities and most popular tourist attractions.

Within 45 to 60 minutes of major metropolitan centres and close to regional tourist destinations.

Residents within 120 mins drive: 163m Annual tourists to cities served by Villages: 100m Annual cars that pass the Villages: 289m

162,158m2 of gross lettable area. 958 Boutiques. 96.1% Occupancy.

Milan Year opened: 2003 GLA: 17,267m2 Occupancy: 98% Sales/m2: 5,741 Boutiques: 104 Catchment1: 21m

London Year opened: 1995 GLA: 22,071m2 Occupancy: 99% Sales/m2: 22,032 Boutiques: 140 Catchment1: 30m

Dublin Year opened: 2006 GLA: 10,978m2 Occupancy: 96% Sales/m2: 7,134 Boutiques: 65 Catchment1: 4m

Munich Year opened: 2005 GLA: 20,544m2 Occupancy:: 100% Sales/m2: 5,460 Boutiques: 121 Catchment1: 14m

Barcelona Year opened: 1998 GLA: 17,517m2 Occupancy: 99% Sales/m2: 8,710 Boutiques: 106 Catchment1: 6m

Frankfurt Year opened: 2003 GLA: 20,873m2 Occupancy: 99% Sales/m2: 5,855 Boutiques: 119 Catchment1: 21m

Brussels Year opened: 2001 GLA: 19,062m2 Occupancy: 98.0% Sales/m2: 5,470 Boutiques: 104 Catchment1: 41m

Madrid Year opened: 2000 GLA: 16,456m2 Occupancy: 98% Sales/m2: 9,693 Boutiques: 112 Catchment1: 8m

Paris Year opened: 2000 GLA: 121,289m2 Occupancy: 100% Sales/m2: 13,780 Boutiques: 113 Catchment1: 18m

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Formula for success; a virtuous cycle of value creation

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Timon Drakesmith

Hammerson’s Investments in Value Retail

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Holding Companies 22% equity (£163 million)

Hammerson £47 m shareholder

loan

Bicester Village

La Roca Village

Las Rozas Village

La Vallée Village

Maasmechelen Village

Fidenza Village

Wertheim Village

Ingolstadt Village

Kildare Village

Hammerson invests directly in Asset Companies at ‘Investor’ level. The current carrying value as at June 2012 was £146 million for Bicester and £51 million for the European assets.

Total Village ownership (%)

Village Ownership via LP’s (%)

33 15 15 0 13 20 31 0 3

45 26 26 11 24 32 43 11 14

Bicester Village – Recent performance

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143 168

241

302

392

468

-

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100

150

200

250

300

350

400

450

500

2007 2008 2009 2010 2011 2012 *

Brand Sales (£m) * 2012 forecast

228 277

340

451.5

559

646

0

100

200

300

400

500

600

700

2007 2008 2009 2010 2011 2012 *

Asset Valuation (£m) * as at June 2012

Asset values based upon external valuations

CAGR 23% pa CAGR 27% pa

Value Retail – Income returns to Hammerson

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3.2

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3.6% 4.0%

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4

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2008 2012 (proforma)

LHS income from Value Retail (£m p a)

RHS income yield (%)

Income yield

Income from Value Retail CAGR 36.2% p a

An attractive sector of retail property

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•Growing sector of retail market

•Domestic and international customer base

•Geared to increasing prosperity in emerging markets

•High quality portfolio in Europe’s principle cities

•Aligned with best in class operator

•Significant opportunities for collaboration

David Atkins

€500 bond issue 2.75% coupon LTV 27% (Pro-forma for Brookfield transaction) Reduction in operating expenses of 3%

Printemps signed at Les Terrasses du Port Commenced extension projects Heads of terms signed with JLP for Leeds

Disposal of offices £518m, 5% above book value £65m Whitgift acquisition £136m Victoria Quarter acquisition Additional £100m investment in Value Retail

Delivering on our vision…..

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Investment & Development

Leasing & Asset

Management

Financing & Operations

…but more to come

Capital allocation to enhance portfolio returns

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Investment in our assets offer attractive low-risk returns

Developments will amplify returns - target YOC ≥7.5% - target IRR ≥ 12.5%

Continual recycling of capital into higher return opportunities Selected acquisitions

Prime Shopping Centres

Convenient Retail Parks

Premium

Designer Outlets

Extension and refurbishment

Development

Acquisition

Allocating capital to winning locations

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Acquisition of 25% of Whitgift, Croydon

•600,000 sq ft shopping centre •£65 million headlease investment •Low initial yield pending development •Highly reversionary •Commitment to Croydon regeneration

Growing retail warehouse portfolio •Open A1 planning consents •Low average rents •Accessible and high car park provision •Development and asset management opportunities

Acquisition of Victoria Quarter, Leeds •210,000 sq ft luxury retail destination •£136 million (5.25% initial yield) •100% occupancy •Rents anticipated to grow c.15% •Adjacent Eastgate Quarters project

Experience Convenience Luxury & Value

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Whitgift, Croydon

• Large catchment population

•Strong growth location

• Weak competition

• Limited supply of modern retail accommodation

• Encouraging demand from key retailers and leisure operators

• Potential to create south London’s premier retail destination (1.6 million sq ft)

HOF

M&S

Debenhams

Whitgift, Croydon

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Victoria Quarter, Leeds

• 6th largest UK catchment population

• Anchored by Harvey Nichols

• £6 billion total catchment spend

• Strong trading by successful designer brands

• 100% occupancy

• Only 20% of luxury demand currently met

•Synergies with Eastgate Quarters

Harvey Nichols

John Lewis

Victoria Quarter, Leeds

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David Atkins & Martin Plocica

Revised UK structure – focus on core retail areas

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David Atkins Chief Executive

Timon Drakesmith Chief Finance Officer

Peter Cole Chief Investment

Officer

Andrew Berger-North

Portfolio Director, Retail Parks

Simon Travis Business Development Director (Value Retail)

Marty Plocica Director UK Shopping

Centres

Supported by specialist staff

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Sheila King Leasing Director, New

Business

Stephen Brown UK Marketing Director

Robin Dobson Director Retail Development

Kevin Crowley Business Development

Director

Mike McGuinness Development Director

Marty Plocica; Director UK shopping centres

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•25 years of work history in retail real estate.

•Experienced in retail real estate markets in the UK, US, India, China and Mexico.

•20 years of experience in asset management, business development and revenue generation.

Consumer Trends Retailer Response Hammerson response

Increased brand awareness

Convenience

Technology

Experience

Consolidation

Easy to access locations

Multi- Channel

Experiential Retail

Winning Retail Venues

Retail Parks

In-house skills Innovation

Click & Collect

Exciting brands Leisure & catering

Events

Responding to market dynamics

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Environment of fast paced change

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Amazon.com launches. In 2010, turnover is $10billion Ocado wall at Bullring

Tesco launch Clubcard,

1995 2000

ASOS launches. In 2010 reported profits of £20m

2001

Launches johnlewis.com

2004

Launches and in 2010 reports breaking 600m worldwide users

2006

First ‘bricks’ business to report a profit in online click and delivery

2007

Launches mobile payment with paypal.

2008

Argos becomes the most visited retail site in the UK

2009

Daily Deal site launches and is now the globes fastest growing company

Relaunches johnlewis.com with emphasis on click and collect facilities

2011

ASOS launches facebook store and Argos launch TV channel

2010

Launch 1st transactional websites

2012

UK at forefront of multi-channel retailing

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Many rich people online

Centralised retail Legacy of home delivery

Large, concentrated population

Source; Javelin

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“Excite me……”

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….. with great environments

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….. adapted to meet customer preferences

Introducing cinemas Improving catering

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Free wi-fi by Dec 12

Mobile websites

Path Intelligence

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.. and attracting footfall through innovative marketing

• Location based real time offers at Silverburn • Google indoor mapping at Brent Cross • Student nights • “Everyone’s a winner” Olympics campaign • Guest bloggers across portfolio

• UK’s second largest City

• Largest urban population outside London

• 1.2m sq ft

• Anchored by Selfridges and Debenhams

• 3,200 parking spaces

• 39.1m visitor per annum

• 161 shops and 28 cafes/restaurants

• 99.1% occupancy

• £915 million asset value (June 2012)

• 5.6% TEY

The Bullring, Birmingham

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The Bullring, Birmingham

Family zone

Sports fashion

High street mass

Catering

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The Bullring, Birmingham

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Outstanding catchment fundamentals…..

Total catchment spend on non-grocery of £7.9

billion

Resident population of

2.7 million

56% of consumers belong to the top

ACORN groups

Limited competition

Bullring captures 51% of non-

grocery spend in Birmingham

Largest professional and financial sector outside London

2 major railway stations

Competing centres

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….. and marketing and commercialisation activities

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1.2

1.77 1.83

2.385 2.34 2.46

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2.7

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1.5

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2.5

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3.5

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Com

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£m (1

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3.2

Attract successful retailers ….

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2003 2006 2009 2012

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…. and leads to strong performance

Average vacancy 1.8% CAGR annual rents 5.2% CAGR ERV 3.6%

£33

£42 £43

£45 £47 £46 £46

£49

£52

£30

£35

£40

£45

£50

£55

2003

2004

2005

2006

2007

2008

2009

2010

2011

4.4% 4.0%

2.1%

1.4%

0.5%

3.0%

1.9%

0.6% 0.9%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

2003

2004

2005

2006

2007

2008

2009

2010

2011

£38

£45 £46

£48 £49 £50 £50

£51 £52 £52

£30

£35

£40

£45

£50

£55

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

£million £million

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Summary

Portfolio aligned to “winning” locations

Exciting our consumers by providing great retail venues

Enhancing the visitor experience through leisure and catering

Industry leading multi-channel and social media initiatives

Drives sales, footfall and rental growth

Hammerson - a pure retail REIT that delivers industry-leading shareholder returns

Questions