How to use template…2016 2017 2018 UK shopping centres UK retail parks France shopping centres Ireland shopping centres Outlets Market investment volumes (£bn) (1) 2018 valuation

2018 Full-year results 25 February 2019

Victoria, Leeds

Agenda

01 2018 overview and 2019 priorities David Atkins – CEO

02 2018 financial results Timon Drakesmith – CFO

03 Actively managing the changing shape of retail David Atkins – CEO

04 Conclusion and Q+A

2

2018 overview

Structural shift in retail

UK online penetration 18% (1)

Significant increase in tenant failures

Winning and losing brands

3

Progress in a challenging market

1 Global Data 2019 online penetration 2 See slide 4 3 Dividends and share buyback

Challenges 2018 performance

Continued demand for our space

Total leasing £27.7m rent

6% above ERV, 5% above previous passing rent

Occupancy 97.2%

Tough UK market

Prevailing economic uncertainty impacting consumer confidence

Declining sales and footfall

Diversified portfolio supports performance

48% portfolio non-UK

LfL NRI: Ireland +1.6%; premium outlets +5.2%

Weak investment markets resulting in

valuation decline

Transaction volumes down 41% in 2018 (2)

£570m disposals achieved

Disposals include 50% Highcross and four retail parks

Net debt reduced by £95m, LTV 38%

£331m returned to shareholders (3)

2018 overview

4 1 Source: UK volumes: PropertyData; Other sectors: Cushman & Wakefield 2 Valuation change reflects capital return. UK Other and Development portfolios not shown

0

2

4

6

8

10

12

2016 2017 2018

UK shopping centres UK retail parks

France shopping centres Ireland shopping centres

Outlets

Market investment volumes (£bn) (1) 2018 valuation change (%) (2)

-12

-10

-8

-6

-4

-2

0

2

UKflagships

UK retailparks

Franceflagships

Irelandflagships

Premiumoutlets

Group

H1 H2

£9.7bn

£6.7bn

£4.0bn

Weakening investment market impacting our valuations

2019 priorities

5

Structural retail shift and increasingly challenging markets driving our priorities

Capital efficiency Optimised portfolio Operational excellence

Reducing debt Exiting retail parks

Pursuing portfolio-wide disposals

Managing structural shift in retail

2019 priorities

0

100

200

300

400

500

600

6

Number one priority for 2019 is reducing debt

1 Shown gross of selling costs. Net proceeds £553 million 2 See slide 14 for capex details. Premium outlets acquisitions of £109m relate to additional Value Retail investor stakes acquired during 2018 3 Reflects cash flow in year, additional £2 million settled in 2019 4 See slide 13 for details

Cash proceeds/uses (£m)

£570m disposals

completed (1) >£500m target

disposals

£127m share

buyback (3)

2018 2019 forecast

£339m capex and premium

outlet acquisitions

£140m forecast capex

Future share buybacks on hold until we achieve our enhanced portfolio disposal goal and see greater market certainty

£179m debt reduction in H2 18

Target net debt c.£3.0bn by December 2019

£95m reduction in debt

Reducing debt

Other (4)

(2)

0

100

200

300

400

500

600

700

2014 2015 2016 2017 2018 2019 target

UK flagships UK retail parks UK other UK office France Ireland

2019 priorities

7

Hammerson annual disposal proceeds (£m)

Absolute commitment to disposals

2018 disposals

£570m achieved

50% Highcross and four retail parks

7% below Dec 2017 book value

2019+ disposals

>£500m target

Exit retail parks

Pursuing disposals from across the portfolio; discussions under way for over £900m

2014 – 2018 average £395m p.a.

2018 financial results

Timon Drakesmith – CFO and MD, Premium Outlets

8

image

Headline financial results

9 1 Capital return 2 Proportionally consolidated LTV 43% (2017: 40%)

Income statement 31 Dec 2018 31 Dec 2017 Change

Net rental income (£m) 347.5 370.4 (6.2%)

Adjusted profit (£m) 240.3 246.3 (2.4%)

Adjusted EPS (p) 30.6 31.1 (1.6%)

Final dividend (p) 14.8 14.8 −

Total dividend (p) 25.9 25.5 1.6%

Balance sheet Change

Portfolio value (£m) 9,938 10,560 (4.3%)(1)

EPRA NAVPS (p) 738 776 (4.9%)

Net debt 3,406 3,501 (2.1%)

LTV – headline (%) (2) 38% 36% +2pp

10 1 At constant exchange rates 2 Figures on a proportionally consolidated basis

Sector FY 2018 capital return (1)

H2 2018 capital return (1)

Value at 31 Dec 18 (2)

Portfolio weighting (2)

% % £m %

Flagship destinations

UK (10.6) (9.3) 2,921 29

France (1.7) (0.7) 1,885 19

Ireland 0.9 (1.0) 979 10

Premium outlets 2.4 1.2 2,459 25

Developments 4.1 1.2 648 6

UK other 4.5 (5.5) 173 2

UK retail parks (13.2) (9.9) 873 9

Total (4.3) (4.0) 9,938 100

Portfolio valuation summary

11 1 Figures on a proportionally consolidated basis and exclude UK Other and Developments 2 Premium outlets NEY is based on Cushman & Wakefield exit yields

Sector (1) NEY 31 Dec 2018

NEY increase/

(decrease) in 2018

ERV increase/

(decrease) in 2018

Commentary

% bps %

Flagship destinations

UK 5.3 +37 −2.0 Yields underpinned by transactions (Highcross, Clapham) and Dec 18 RICS guidance

France 4.2 −6 +0.5 ERVs driven by leasing at Les Terrasses du Port

Ireland 4.4 +4 +2.8 ERV progression at Dundrum and Pavilions

Premium outlets (2) 5.7 −9 +1.7 Driven by sales growth and remerchandising

UK retail parks 6.5 +53 −2.7 Weakening transactional evidence and CVA impact

Valuation drivers: yield and ERV movements

12

Internal guidelines 31 Dec 2018 31 Dec 2017

Net debt - £3,406m £3,501m

Gearing <85% 63% 58%

LTV – headline (1) <40% 38% 36%

LTV – fully proportionally consolidated (2) <45% 43% 40%

Cash and undrawn facilities - £729m £958m

Debt maturing in <2 years - nil £491m

Weighted average cost of debt - 2.7% 2.9%

Interest cover >2.0x 3.4x 3.4x

Net debt/EBITDA <10x 9.5x 9.3x

Fixed rate debt >50% 74% 78%

GBP/EUR FX balance sheet hedging 70% - 90% 79% 78%

Credit ratios

1 Net debt excludes premium outlets and value includes premium outlet net assets 2 Includes VIA Outlets and Value Retail net debt and property values

Net debt analysis

3,501

3,406

3,406

c.3,000

570

203 204

127

230

117

2600

2700

2800

2900

3000

3100

3200

3300

3400

3500

3600

Dec 2017 Disposalproceeds

Net operatingcashflow

Dividend Share buyback Capex Outletacquisitions and

other

Dec 2018 2019 target

13 1 On a proportionally consolidated basis, excluding premium outlets 2 Excludes selling costs of £17 million which are included in ‘outlets acquisitions and other’ 3 Includes £31 million held in escrow for future Croydon land acquisitions and a £16 million movement in capex receivables and payables 4 Includes outlet acquisitions of £109 million, selling costs, foreign exchange, outlet distributions, debt and loan cancellation costs, acquisition-related costs and dividends paid to

non-controlling interests

Net debt analysis (£000m) (1)

(4)

Reduce debt

(3)

(2)

Committed 2018

Actual

£m

2019

Forecast

£m

2020

Forecast

£m

On-site developments 95 70 80

Other committed capex (1) 74 25 -

169 95 80

Discretionary

Flagship destination investment 43 38 40

City Quarters 2 7 20

45 45 60

Total 214 140 140

14

Flexibility over future capital expenditure

1 2018 includes £31 million held in escrow for future Croydon land acquisitions

Defer start of Brent Cross development

Capex 2018-2020

LfL NRI movements

15

0.3

10.4

4.1

1.6

(0.9)

(1.3)

(4.3)

-6 -4 -2 0 2 4 6 8 10 12

Group

VIA Outlets

Value Retail

Ireland Flagships

France Flagships

UK Flagships

UK Retail Parks

LfL NRI movements across the portfolio (%)

CVAs (-2.1%), Westquay and Grand Central

Lower occupancy and backdated turnover rent in 2017

Rent reviews and leasing Growth at all centres

CVAs (-4.7%)

Landquart, Lisbon, Mallorca

Fidenza, Kildare, La Vallée

Key drivers

Stand out growth rates from premium outlets

16 1 All figures at Hammerson share. Source: 2014-2018 Company Annual Reports and Accounts. 2 4 year CAGR 2014-2018 3 Marketing expenditure derived from Value Retail and VIA Outlets annual reporting packs

Premium outlets financial summary 2014-2018 (1)

2014 2015 2016 2017 2018 CAGR (2)

£m £m £m £m £m

GRI 72 87 101 139 160 22.4%

NRI 52 66 68 98 113 21.3%

Marketing expenditure (3) 13 14 23 27 34 26.5%

Marketing:GRI ratio 18% 16% 23% 19% 21%

EBIT 32 37 43 59 68 21.1%

EBIT margin 44% 43% 43% 42% 43%

EPRA earnings 17 23 30 38 41 24.8%

Property valuations 1,028 1,244 1,689 2,234 2,459 24.4%

EPRA net assets 769 921 1,288 1,575 1,754 22.9%

2% 3% 4% 5% 6% 7% 8%

€3,000-5,000/m

€5,000-8,000/m

€8,000-39,000/m

Yields on premium outlets

Premium outlet valuations are driven by sales density levels

17 1 ‘Very high’ includes Bicester Village, Fidenza Village, Ingolstadt Village, Kildare Village, La Roca Village, Las Rozas Village, La Vallée Village and Wertheim Village 2 ‘High’ includes Batavia Stad Fashion Outlet, Maasmechelen Village, Mallorca Fashion Outlet, Vila do Conde Porto Fashion Outlet and Zweibrücken Fashion Outlet 3 ‘Medium’ includes Fashion Arena Prague Outlet, Freeport Lisboa Fashion Outlet, Hede Fashion Outlet, Landquart Fashion Outlet, Oslo Fashion Outlet, Sevilla Fashion

Outlet and Wroclaw Fashion Outlet

(1)

2

(3)

Very high (1)

High

Medium

Sales densities illustrate appeal to consumers, brands and investors 2018 weighted average sales density was €10,000/m2, up +5% YoY Weighted average NIY 4.70% Comparable to European prime shopping centres

Sales densities illustrate appeal to consumers, brands and investors 2018 weighted average sales density was €9,800/m2, up +5% YoY Weighted average NIY 4.7% Comparable to European prime shopping centres

High (2)

Medium (3)

2

2

Dec 2018 NIY (%)

Sa

les

densi

ty (

€000/m

2)

2018 earnings and future guidance

30.6

30.2

28.1

27.1

27.1

27.6

31.1

0.4

2.1

1.0

(0.5)

(3.5)

2018

Premium Outlets

Interest, net admin andother

Development and other

LfL NRI

Net disposals

2017

18

2018 EPS walk (pence per share) Debt reduction phase 2019-2020

Negative – Disposals Future 2021+

Neutral – Flat or net acquisitions

Neutral – Deferring projects

Negative

Neutral

Positive

Negative

Positive

Neutral

Positive

Positive

Positive

Positive

EPS: Positive EPS: Negative

Actively managing the changing shape of retail David Atkins - CEO

19

label Rooftop at Les Terrasses du Port, Marseille

UK France Ireland Premium outlets

2019 online penetration (1) 18% 11% 10% 10%

Consumer spending growth 2019 (2)

1.1% 1.3% 2.2% 3-5%

Rental income growth 2019-2020 (3)

-1.6% 1.1% 4.7% 6.2%

29%

19%

10%

25%

9%

8%

Hammerson’s geographic diversification mitigates risk

20 1 Sources: Global Data, CRR Retailmenot 2 Source: Oxford Economics 2019 forecast. Real prices 3 Source: PMA 2019-2020 mall rental growth per annum 4 Source: Bain 2018 Luxury Goods Worldwide Market Study online penetration reflects global luxury sales 5 Source: Bain 2018 Luxury Goods Worldwide Market Study based on spending on personal luxury goods 2019-25 6 Source: Bain 2018 Luxury Goods Worldwide Market Study. Growth in luxury off-price sales used as proxy for rental income growth as brand sales drive turnover rent

Hammerson portfolio split by value

UK flagships

France flagships

Ireland flagships

Premium outlets

UK retail parks

Developments and UK other

48% non-UK

(4)

(5)

(5)

Responding to our changing markets

21

Teneo

Structural shift in retail Elevating experience

Our response: Leasing strategy Our response: Leisure & super events

Luxury sales outperform

Our response: Premium outlets platform

Thriving cities

Our response: City Quarters


22

Online growth a key factor in declining store numbers

1 Global Data 2 LDC

• Urgent right sizing of estates from legacy ‘every’ high street to ‘selective’ flagship required

• Rest of Europe likely to experience faster channel shift in coming years to catch-up

Channel shift has been fast in the UK

UK retail online penetration % (1)

Those slow to adapt are failing

UK net store openings & closures by category (2)

6

8

10

12

14

16

18

20

22

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

(5,000)

(4,000)

(3,000)

(2,000)

(1,000)

0

1,000

2,000

2012 2013 2014 2015 2016 2017 2018

Non-Food Grocery Leisure Service

14.2% 7.7% 0.1%

-2.2% -2.7% -3.0% -3.3% -3.5% -4.8% -5.4% -9.4%

-45%

-35%

-25%

-15%

-5%

5%

15%

25%

35%

45%


23

Differentiation between categories and brands in our UK portfolio

1 Source: Tyco 2 Source: BDO 3 BRC Nielsen shop price index

Hammerson UK flagship destinations category sales and range

Home, consumer brands & gifts

Selected winning brands

2018 footfall

Hammerson -1.8%

Index -3.5% (1)

2018 sales

Hammerson -2.9%

Index -2.7% (2)

2018 price deflation (3)

Non-food -1.5%

Clothing -7%

Dept. stores

(aspirational)

Leisure Sportswear Health &

beauty

F&B Jewellery &

personal luxuries

High street

fashion (contemporary)

Fashion (aspirational)

Dept. stores

(mainstream)

High street

fashion (traditional)

0

5

10

15

20

25

30

High street fashion(traditional)

F&B Department stores(mainstream)

Home, consumerbrands and gifts

Health & beauty Jewellery &personal luxuries

2017 2018


24

Managing the significant increase in tenant failures

1 Includes UK flagship destinations, UK retail parks and UK other portfolios

Number of units impacted by CVAs and admins in UK by category, 2017-2018 (1)

86 stores impacted; 80% of units trading

£6m NRI impact in 2018, 1.7% group passing rent

7 units impacted YTD 2019

Add market data?

Selected tenant failures:

24

Rent at risk £8.7m (2.5% group passing rent)

Online catchment sales

Service

Fulfilment

Returns

Brand awareness


25

Successful brands want the right physical presence

1 Source: LDC growth in brands with at least five UK stores, 2013-2019

+11% brands taking space (vs. 2013) (1) The role of physical space is evolving

[Brewdog]

Morphe, Bullring

Teneo

0.0

5.0

10.0

15.0

20.0

25.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Janu

ary

Febru

ary

Marc

h

April

May

June

July

Aug

ust

Sep

tem

ber

Oct

ober

Nove

mber

Dec

ember

Monthly leasing 2018 (LHS) Cumulative leasing activity 2017 (RHS) Cumulative leasing activity 2018 (RHS)


26

Strong leasing volumes in our flagship destinations

1 New lettings across UK, France and Ireland flagship destinations. 2017: group average lease term 11 years; group average incentive 6 months

Flagship destinations leasing (£m)

2018 Leasing £m

Principal leasing 17.9

Reconfigurations 6.4

Temp and other 3.5

Total 27.8

Group leasing key facts

Leasing vs. Dec 17 ERV +6%

Leasing vs. previous passing +5%

Average lease term: 11 years (1)

Average incentive: 6 months (1)

Flagship leasing volumes

2018 £m

2017 £m

UK 14.4 13.4

France 7.3 9.8

Ireland 2.6 1.9

Total 24.3 25.1


27

Actively managing the mix, leasing to winners

1 UK flagship destinations 2018 new lettings

Category Current mix Future mix Rent/sq ft New leasing (1)

Near-term rental levels

Department stores 38% c.28% c.£10/sq ft nil

High street fashion (traditional) 16% c.10% c.£30/sq ft 13%

F&B 10% c.12% c.£40/sq ft 11%

High street fashion (contemporary)

8% c.12% c.£30/sq ft 24%

Non-fashion and consumer brands 18% c.20% >£50/sq ft 31%

Leisure/events 6% c.10% c.£15/sq ft 14%

Fashion (aspirational) 4% c.8% >£30/sq ft 7%

100% 100% 100%

Data being reviewed


28

Proven success with repurposing department store space

Cabot Circus: income uplift of £1.1 million, yield on cost +9%

Former BHS store TK Maxx Metro Bank

Indicative plan for further repurposing

Indicative financials

Income uplift +50%

Costs c. £20m

Target yield on cost 5-8%

0 20 40 60 80 100

Theatre/music concerts

Going to pubs/bars/clubs

Going to the cinema

Internet/emailing

Days out or visits to places

Eating out at restaurants

Shopping

Spending time with friends/family

Watching TV

2016/17 2006/7

29 1 Department for Digital, Culture, Media and Sport. Proportion of adults who participated in specific free time activities in the 12 months prior to interview, 2006/07 to 2016/17, England

Elevating experience

Humans are social creatures

Shopping and socialising are growing leisure activities

Participation in free time activities (%) (1)

estination shopping is increasing as a share of shopping missions +29% vs. 2013(2)

Experiential 23% of shopping trips are experience led, driving 47% of spend(2)

Social Leisure market is 70%(3) of the size of the non-food retail market, and forecast to grow from £130bn to £141bn in the next four years(4)

YouTube vlogger James Charles at Bullring


30

Bringing excitement back to F&B Content moved to appendix, replace

with hero F+B photography

55% of new UK F&B

lettings in 2018 were to

independent, local or

emerging brands

Miami Burger

Mowgli

Herman Ze German Little Dessert Shop Mission Burrito

Brewdog

Add Irish/French brands

BH by Beef House


31

Creating a buzz: events people want to experience

1 Transactional websites allow shoppers to purchase online from tenants within our flagship destinations with access through the venue’s website

Festival of Light at Westquay, Southampton

+£2m investment in experiential events in 2019

+£2m investment in experiential events in 2019

£10m online sales - 2019

Transactional websites at Bullring and Westquay (1)

€31bn

€47bn

0

5

10

15

20

25

30

35

40

45

50

2018 2025F


32

A desire for off-price luxury underpins high-end spending

1 Source: 2018 Bain luxury goods study

La Roca Village

Las Rozas Village

La Vallée Village

Wertheim Village

Zweibrücken Fashion Outlet

6.2% CAGR

Image of Gucci/Prada?

Bicester Village

Global personal luxury goods off-price store sales (€bn) (1)


33 1 Top four Value Retail Villages and top two VIA Outlets based on brand mix 2 Source: Cushman and Wakefield. Figures represent annualised base and turnover rent at 31 December 2018 at Hammerson’s ownership share

Our premium outlets are differentiated

The six most high-end outlets (1) make up more than 65% of total income

Income by outlet – Hammerson share (£m)

Bicester Village, London

La Vallée Village, Paris

La Roca Village, Barcelona

Las Rozas Village, Madrid

Freeport Lisboa Fashion Outlet

Mallorca Fashion Outlet

Other

Income £183.5m (2)

London

Birmingham

Croydon Dublin

Leicester

Paris

Marseille

Nice

Reading

Aberdeen

Leeds

Southampton

Glasgow

Bristol

UK

France

Ireland

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

£10k £12k £14k £16k £18k £20k £22k £24k £26k

Thriving cities

34

Format to change – LHS

Map, RHS table

We are in thriving cities

Consumer spending and population growth forecast in Hammerson flagship locations (1)

Total consumer spending per capita (2018)

Fore

cast

po

pula

tio

n g

row

th (

2018

-23),

%

0.7% £15.1k

European average

Country Benchmarks

1 Source: Oxford Economics

Thriving cities

35

Development expertise in action: on-site at two French flagship destinations

2018 progress

Brent Cross

Ongoing discussions with key stakeholders

Reviewing optimum mix of uses

Croydon

CPO powers granted H2 2018

Size Size

44,300m2 Total development cost

£290m

6,400m2 Total development cost

£39m Target rent

£16m Target rent

£2m

Started June 2018

34% pre-let

Open spring 2020

Started January 2018

22% pre-let

Open spring 2021

Les 3 Fontaines, Cergy

Cergy

On-site schemes

Cergy: Italik:

Les 3 Fontaines, Cergy Italik, Paris

Start on site Jan 18 Jun 18

Opening Q2 2021 Q2 2020

Cost to complete £145m £22m

Pre-let 23% 34%

Italik, Paris Future outlook

Reviewing schemes to ensure they respond to changing retailer requirements and are appropriate for the future

On-site schemes Major developments

Thriving cities

36 Metrics include City Quarters and major developments

City Quarters: an opportunity beyond retail

6,600 residential units

1.8m sq ft work space

1,000 hotel rooms

9 parks and public

spaces

Bristol

Moving beyond retail to create vibrant city neighbourhoods

200,000m2 work space

1,200 hotel rooms

9 parks and public spaces

97 acres

37

Thriving cities

City Quarters: creating value today and tomorrow Update content and images

Residential building, Dundrum Short term opportunities

Uses to include residential, co-working, hotel

Planning consent on at least two sites in 2019

Initial delivery by end of 2021

Target YOC 5-6%

Strategic sites

Key schemes include:

Martineau Galleries, Birmingham

Broadmead, Bristol

Dublin Central

Dundrum Phase 2

Victoria Phase 2, Leeds

Existing land value £360m

Current NRI £10m

Hotel, Victoria Leeds


Conclusion

38

Continually evolve our

spaces

Build balance sheet strength

A clear plan to create value

39

Reducing debt

Exiting retail parks and pursuing portfolio-wide

disposals

Repurposing retail space

Enhancing experience with

F&B, super events and digital

City Quarters beyond flagship

destinations

Vibrant neighbourhoods in

thriving cities

Slide title TBC

Format tbc

Teneo

Shareholder returns

Beyond retail

Continually evolve

our spaces

Build balance sheet

strength

Questions

40

Supplementary Appendices

41

Victoria, Leeds

Contents

01 Group

02 UK flagship destinations

03 France flagship destinations

04 Ireland flagship destinations

05 Premium outlets

06 UK retail parks

42

Group

43

01

Westquay, Southampton

14 countries

UK flagship destinations - £2.9bn

France flagship destinations - £1.9bn

Ireland flagship destinations - £1.0bn

Premium outlets - £2.5bn

UK retail parks - £0.9bn

Development & UK other - £0.7bn

£9.9 billion leading pan-European retail platform

44

48% non-UK assets

430m visitors

4,800 tenants

11 - UK flagship destinations

7 - France flagship destinations

3 - Ireland flagship destinations

13 - UK retail parks

20 - Premium Outlets

Map update in progress

54 European flagship destinations

Top 3 market position in all chosen sectors

2.3m m2 retail space

update

29%

19% 10%

25%

9%

8%

Appendices: Group

45

2018 Group leasing performance

0

5

10

15

20

25

30

35

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Janu

ary

Febru

ary

Marc

h

April

May

June

July

Aug

ust

Sep

tem

ber

Oct

ober

Nove

mber

Dec

ember

Monthly leasing 2018 (LHS) Cumulative leasing activity 2016 (RHS) Cumulative leasing activity 2017 (RHS) Cumulative leasing activity 2018 (RHS)

2018 leasing and cumulative vs. 2017 and 2016 (£m)

Appendices: Group

46

2018 Group leasing performance by sector

2018 leasing by sector (£m)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Janu

ary

Febru

ary

Marc

h

April

May

June

July

Aug

ust

Sep

tem

ber

Oct

ober

Nove

mber

Dec

ember

UK flagship destinations France flagship destinations Ireland flagship destinations UK retail parks UK other

Appendices: Group

47 1 Including UK Other properties (principally assets held for development and non-core)

Leasing vs previous passing

(%)

Leasing vs ERV (%)

Like-for-like ERV growth

(%)

New rent secured from leasing

(£m)

UK flagship destinations +1 +5 –2.0 14.4

France flagship destinations +5 +5 +0.5 7.3

Ireland flagship destinations +28 +8 +2.8 2.6

UK retail parks +19 +11 –2.7 2.4

Group +5 +6 –0.9 27.7 (1)

2018 portfolio leasing overview

Appendices: Group

48 Note: 50 units in administration at 31 December 2017 (0.9% group passing rent). 41 of these units were occupied (0.8% group passing rent)

Insert logos of brands affected 2018 administrations and CVAs

UK flagship

destinations

France flagship

destinations

Ireland flagship

destinations

UK retail parks

UK other

interests

Group

Dec 17 total units in administration or CVA

17 27 - 3 3 50

Dec 18 total units in administration or CVA

49 23 - 12 8 92

Dec 18 total units occupied 40 23 - 12 6 81

Admin/CVA % of Group passing rent at Dec 18

1.8% 0.7% - 0.5% 0.2% 3.2%

NRI impact – FY 2018 (£m) 3.0 1.0 0.2 2.8 0.1 7.1

FY 2018 impact (% passing rent)

0.9% 0.3% - 0.8% - 2.0%

Appendices: Group

49 1 Sales: 2018 UK benchmark –2.7% (Source: BDO); 2018 France benchmark -1.8% (Source: CNCC, as at Dec 2018) Retail sales on same-centre basis 2 Footfall: 2018 UK benchmark -3.5% (Source: Tyco Shoppertrak); 2018 France benchmark -1.7% (Source: CNCC) 3 Excludes anchor stores. French data includes VAT (rent:sales and OCR), excludes Les 3 Fontaines, Cergy 4 Excludes anchor stores. French data includes VAT 5 French data restated to exclude Les 3 Fontaines, Cergy, due to redevelpment

Occupancy (%) UK flagship destinations

France flagship

destinations

Ireland flagship

destinations

UK retail parks

Group

31 December 2018 97.6 97.1 99.0 96.9 97.2

30 June 2018 97.2 97.1 98.9 94.5 96.6

31 December 2017 98.1 97.9 99.7 99.4 98.3

UK flagship destinations

France flagship destinations

Sales (1) –2.9% +2.2%

Footfall (2) –1.8% +2.5%

Rent:sales (3) 13.3% 10.7%

OCR (3) 22.6% 13.7%

Sales densities (4)

UK £/ft2

France (5) £/ft2

2018 235 – 496 356– 490

2017 240 – 490 402 – 500

2016 250 – 515 350 – 562

2018 operational statistics

Appendices: Group

50

Our Product Experience Framework

We create desirability

Iconic destinations

Built environment

Placemaking

Seamless technology

Flexible construction

Customer first

Insight driven

Frictionless experience

Enhanced services

Sensory experience

Experience led

Food & beverage

Leisure as anchor

Engaging events

Surprise & delight

Retail specialism

Optimal retail mix

Fresh concepts

Innovative retail technology

Operational efficiency

Positive for the environment | Positive for the community

Appendices: Group

51 1 Development and other includes the movement in the UK Other interests portfolio where valuations increased by a total of £7m and Developments which increased by £23m during 2018. Other capital movements reflect the impact of changes in purchasers’ costs, development surpluses and capital expenditure

Components of valuation change in 2018, total portfolio (£m)

-279

-8 -10

16

-98

-6

-385

-73

-8

19 40

-26

2

-46

5 2

-2

34 39

-347

-14

9

56

-126

30

-392

-500

-400

-300

-200

-100

0

100

UK flagshipdestinations

France flagshipdestinations

Ireland flagshipdestinations

Premium outlets UK retail parks Developments andother

Group

Yield Income Development and other Total(1)

2018 components of valuation change

Appendices: Group

52

UK flagship

destinations

France flagship

destinations

Ireland flagship

destinations

UK retail parks

UK other

interests

Total portfolio

True equivalent yield (%)

31 Dec 2018 5.5 4.3 4.5 6.8 8.0 5.3

31 Dec 2017 5.1 4.4 4.4 6.2 7.2 5.0

Change (bps) +40 –10 +10 +60 +80 +30

ERV (£m)

31 Dec 2018 169.3 89.3 45.3 59.7 13.3 376.9

31 Dec 2017 186.7 91.7 43.3 75.4 14.1 411.2

LfL change (%) –2.0 0.5 2.8 –2.7 0.3 –0.9

2018 valuation data

Appendices: Group

53

Key disposals achieved 2016 - 2018

1 Gross proceeds 2 Total annual gross proceeds: 2016 - £651m; 2017 - £402m; 2018 - £570m

2016 : average -2% below book value Proceeds (1) £m

Buyer

Monument Mall, Newcastle 75 Standard Life

Villebon 2, Villebon-sur-Yvette 132 French Institution

Thurrock Shopping Park 100 TH Real Estate

Manor Walks shopping centre, Cramlington 78 Arch (local authority)

Westmoreland retail park, Cramlington 36 Arch (local authority)

Grand Central, Birmingham (50%) 175 CPPIB

Westquay South, Southampton (50%) 47 GIC

2017: average -3% below book value

Westwood and Westwood Gateway Retail Parks, Thanet 80 BMO (private equity)

Saint Sébastien, Nancy(2) 140 AEW (private equity)

Place des Halles, Strasbourg 167 Greenstone Oxford Limited

2018: average -7% below BV

Battery Retail Park, Selly Oak 58 NFU Mutual

Wrekin Retail Park, Telford 35 Ediston/Europa

Imperial Retail Park, Bristol/Fife Central Retail Park, Kirkcaldy 164 Capreon (private equity)

Highcross, Leicester (50%) 236 Asian investor, introduced by M&G Real Estate

Total 2016 – 2018 (2) £1.6bn

Appendices: Group

On-site developments Lettable area m2

Expected completion

Value 31 Dec

2018 £m

Estimated cost to

complete (2)

£m

Estimated annual

income (3)

£m

Let (5)

%

Italik, Italie Deux extension, Paris 6,400 Q2 2020 22 22 2 34

Les 3 Fontaines extension, Paris 44,300 Q2 2021 194 145 16 23

Total 50,700 216 167 18

54 1 Group ownership 100% for all on-site schemes 2 Incremental capital cost including capitalised interest 3 Incremental income net of head rents and after expiry of rent-free periods 4 Estimated rental value as per the Group’s valuers at 31 December 2018 5 Let or in solicitors' hands by income at 22 February 2019

Recently completed developments

Lettable area m2

Completed Total development cost (2) £m

ERV (4) £m Let (5)

%

Parc Tawe redevelopment, Swansea 21,400 Feb 2018 16 2 67

Orchard centre extension, Didcot 8,700 Mar 2018 44 3 76

Total 30,100 60 5

On-site and recently completed developments

Appendices: Group

55

Debt maturity profile

Note: Proportionally consolidated, excluding premium outlets

0

100

200

300

400

500

600

700

800

900

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Revolving credit facilities

Private placement

Sterling bonds

Euro bonds

Secured debt

Debt maturity profile 31 December 2018 (£m)

Appendices: Group

56

LTV methodology

31 December 2018

Net debt Headline (£m) Fully proportionally

consolidated (£m)

Group 3,406 3,406

VIA Outlets - 242

Value Retail - 658

Loan 3,406 4,306

Property values

Group 7,480 7,480

VIA Outlets - 636

Value Retail - 1,823

VIA Outlets net assets 326 -

Value Retail net assets 1,211 -

Value 9,017 9,939

LTV 38% 43%

Appendices: Group

57

Gearing sensitivity

1 Gearing sensitivity on changes in December 2018 values and future disposal proceeds. Values on a proportionally consolidated basis including premium outlets 2 Calculations assume disposals are achieved at December 2018 book values 3 Group’s tightest gearing covenant on unsecured bank facilities and private placement senior notes

Disposals (£m) (2)

0 100 200 300 400 500 600 700 800 900 1000

Red

uct

ion in G

roup

va

lues

(1)

0% 63% 61% 59% 57% 55% 54% 52% 50% 48% 46% 44%

5% 69% 67% 65% 63% 61% 59% 57% 55% 53% 51% 49%

10% 77% 74% 72% 70% 68% 65% 63% 61% 59% 56% 54%

15% 86% 84% 81% 79% 76% 74% 71% 69% 66% 64% 61%

20% 99% 96% 93% 90% 87% 84% 81% 79% 76% 73% 70%

25% 116% 112% 109% 105% 102% 99% 95% 92% 88% 85% 82%

Gearing covenant 150% (3)

Appendices: Group

58

Cost savings delivery on track to support reinvestment

Breakdown of annual cost savings (£m)

£5.7m p.a. of cost savings

delivered in 2018

£1.3m p.a. from future disposals

Board and management

£2.7m

Operational £2.7m

Disposals £0.3m

£7m p.a.

2019 reinvestment (£m)

£4m p.a.

Technology and innovation

£2m

Super events £2m

Appendix?

Our Sustainability Vision: To create retail destinations that deliver positive impacts economically, socially and environmentally Positive Places is our strategy for making that happen

Material Issues Our Response

Governance and Reporting

Energy demand and security of supply

Materials use and waste management

Climate risk

Sustainability of our product

Community engagement

Building certifications

Placemaking

Comprehensive, sector leading sustainability reporting

Clear focus on energy demand management

Net Positive targets for carbon emissions, water and resource use

Portfolio wide climate risk review completed

Driving operational excellence in the environmental performance of our assets

Extensive, locally focused community engagement programme

Positive Places thinking underpinning our City Quarters concept to deliver best in class placemaking

2018 Materiality Review We regularly review our sustainability strategy with key stakeholders to ensure we stay focused on the most relevant issues for our business and stakeholders. Following our 2018 review, our material sustainability issues and response to them are as follows:

59

Delivering against our Positive Places Strategy

Reducing energy demand across the managed

retail portfolio by a further 11%

Installing additional renewable electricity

capacity at three sites

Reviewing our energy procurement model to

leverage additional renewable capacity and

offer grid balancing

Working with retailers to support efficiency

improvements through fit out

Embedding Positive Places within City Quarters

concept

Working with our design teams to deliver best in

class sustainability in our Dublin developments

Working with regional water companies to

support water reduction initiatives

Working with re-use partners to reduce waste

Continuing our programme of portfolio-wide,

locally focused community engagement

initiatives

11% reduction in energy demand

£790k energy costs savings for retailers and JV

partners

11% reduction in carbon emissions across UK,

Ire and France portfolios

Completed climate risk study for the managed

retail portfolio using 2030 & 2050 scenarios

Generated 450mWh clean electricity

Installed smart metering at nine sites to enable

daily energy monitoring

Recycled of 75% of operational waste across

the portfolio

100% diversion of waste from landfill at 18 of

25 directly managed centres.

£1.7 million+ invested in work with 452

community groups and organisations.

Supporting 150+ business start-ups with Pop-

Up Business and Initiative France

Our achievements in 2018 Our plans for 2019

60

Hammerson has set a target to be Net Positive for carbon, water, resource use and socio-economic impacts by 2030

Carbon Net Positive for carbon means carbon emissions avoided exceed emissions generated.

Resource Use Net Positive for resource use means waste avoided, recycled or re-used exceeds materials used that are neither recycled, renewable nor sent to landfill.

Water Net Positive for water means water replenished by external projects exceeds water consumed from mains supply.

Resource Use Net Positive for socio-economic impacts means making a measurable positive impact on socio-economic issues relevant to our local communities beyond a measured baseline.

“Hammerson was the first real estate company globally to set such comprehensive, challenging Net Positive targets and we are making good progress. Creating Positive Places underpins our delivery of best in class retail assets that respond to the major challenge presented by climate change.” David Atkins, CEO

61

Steps to becoming Net Positive Our phase one target is to be Net Positive for landlord controlled carbon emissions, water demand, resource use and socio-economic impacts by the end of 2020

2015

27,000 tonnes CO2e

539,082 m3 water

18,243 tonnes waste not recycled or reused

2016

24,000 tonnes CO2e

511,888 m3 water

17,293 tonnes waste not recycled or reused

40,000 FTE jobs supported across our assets

2017

Delivered carbon neutral development at Rugby

Installed 3 further solar PV arrays

Reduce energy demand by further 8% v 2015 baseline

Achieved 73% recycling rate and reduced net operational resource use from 3,000 tonnes to1,200 tonnes

2018 32% reduction in phase 1 NP Carbon footprint

23 tonnes CO2e savings from EV charging

Generated 450mWh clean power

4 additional PV arrays installed

16% reduction in phase 1 NP water demand

34% reduction in Phase 1 NP resource use footprint

150+ business start ups supported

2019-2021

Landlord CO2 e reductions optimised and offset opportunities in place for remainder

Energy procurement model driving additional renewable capacity

Net positive approach embedded City Quarters

Increase onsite renewable and EV capacity

Improve energy efficiency of retail units

62


63

02

Westquay, Southampton

Appendices: UK flagship destinations

64

2018 operational update

1 Sales: 2018 UK benchmark –2.7% (Source: BDO) Retail sales on same-centre basis 2 Footfall: 2018 UK benchmark -3.5% (Source: Tyco Shoppertrak)


2018 2017

LfL NRI (%) −1.3 +1.8

Occupancy (%) 97.6 98.1

Leasing activity (£m) 14.4 13.4

Leasing vs. ERV (%) +5 +8

Leasing vs previous passing (%) +1 +6

In-store retail sales (%) (1) −2.9 −2.7

Footfall (%) (2) −1.8 +0.4

Map showing UK SC assets only


11


65

2018 UK flagship leasing performance

1 New permanent lettings only. 2017: average lease term 11 years; average incentive 8 months

0

2

4

6

8

10

12

14

16

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Janu

ary

Febru

ary

Marc

h

April

May

June

July

Aug

ust

Sep

tem

ber

Oct

ober

Nove

mber

Dec

ember

Monthly leasing 2018 (LHS) Cumulative leasing activity 2016 (RHS)

Cumulative leasing activity 2017 (RHS) Cumulative leasing activity 2018 (RHS)

2018 leasing and cumulative vs. 2017 and 2016 (£m) 2018 leasing

£m



Temporary and other

2.1

Total 14.4

UK flagship leasing key facts






66

Profile of leasing at UK flagships

Principal lettings vs ERV (%)

26% to reconfigured space

Drives income Rebases value

14% to short term/pop ups

Trial new concepts Enliven space Contribute to NRI but rents below ERV

Vs ERV

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

60% of total leasing to principal lettings

Next, Oracle

Mercedes, Highcross


67

UK flagship destinations leasing vs. previous passing rent

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

Principal lettings vs previous passing rent (%)

71% leases at or above previous passing


68

Digital brands and direct to consumer

Personal luxuries Fashion – aspirational F&B and leisure

With Iain to update

Leasing to quality operators in 2018


0

100

200

300

400

500

600

700

800

900

1000

Coffee and Grab& Go

Fast casual Mid market Other

2017 2018

69

Continued leasing demand in F&B

1 Other includes bars and restaurants, and premium dining categories

2018 F&B leasing (£000)

Oracle

Renewal +11% uplift

Fast Casual

Mid Market Other

Key leasing deals

Coffee and Grab & Go

+38% YoY

Dundrum

New unit +104% vs ERV

Union Square

Former Byron unit

-28% below previous rent

Highcross

Former House of Fraser

Rent +630% (1)


70

Exposure to department stores

Number of stores

Floorspace

(‘000 sq ft)

Hammerson sales growth

Harvey Nichols 2 85

Selfridges 1 260

John Lewis 5 1,230

Marks & Spencer 4 305

Fenwick 1 175

Debenhams 5 805

House of Fraser 3 490

Total 21 3,350 -ve

Hammerson exposure to department stores in UK

+ve

John Lewis, Grand Central, Birmingham

Check HoF

Proactively reconfiguring department store space

71

House of Fraser Highcross, Leicester

Upsized Zara store now trading

11,000m2 across 3 floors

Replaced with upsized Zara and JD Sports flagships, Adventure Golf, restaurants and

additional car parking

Additional £1.5m of rental income

£17m project cost

Advanced negotiations underway with F&B operator

Proactively took back underperforming House of Fraser unit


Repurposing retail to F&B at Grand Central

Holy Moly Macaroni

Opportunity to create vibrant 1,700m2 F&B terrace

Replaced underperforming retailers with local and independent F&B operators

Income uplift of £835,000

Comptoir Libanais Mowgli

72


73

03

Les Terrasses du Port, Marseille

Appendices: France flagship destinations

74


1 Sales: 2018 France benchmark -1.8% (Source: CNCC, as at Dec 2018)Retail sales on same-centre basis 2 Footfall: 2018 France benchmark -1.7% (Source: CNCC)


2018 2017

LfL NRI (%) −0.9 +2.6

Occupancy (%) 97.1 97.9



Leasing vs. previous passing (%) +5 +8

In-store retail sales (%) (1) +2.2 +0.1

Footfall (%) (2) +2.5 +1.6


7


Portfolio weighted towards flagship assets

75 1 Les Terrasses du Port, Les 3 Fontaines, Italie Deux; by value at 31 December 2018

Investing to enhance leading assets

Les 3 Fontaines, Cergy

Major 44,300m2 extension started in Jan-18

23% pre-let

Italie Deux, Paris

Transforming the centre into a cultural destination

Italik extension launched in Jun-18

Les Terrasses du Port, Marseille

Consistently strong footfall growth +5%

New brands including Boggi Milano, Polo Ralph Lauren

Largest three assets 89% of portfolio (1)

Les Terrasses du Port

Italie Deux

Les 3 Fontaines

Other

89%

Focus on flagship destinations

5.0% 2.7% 0.6% 0.5%

-0.6% -1.0% -1.5% -2.1% -2.4% -2.7% -3.3%

-45%

-35%

-25%

-15%

-5%

5%

15%

25%

35%

45%


76

Differentiation between categories and brands in France

1 Sales: 2018 France benchmark -1.8% (Source: CNCC, as at Dec 2018) Retail sales on same-centre basis 2 Footfall: 2018 France benchmark -1.7% (Source: CNCC)

Hammerson flagship destination category sales and range, France

Sportswear Health &

beauty

F&B Fashion (aspirational)

Home, consumer brands & gifts

Jewellery &

personal luxuries

High street fashion

(contemporary)

Leisure

Sales 2018

Hammerson +2.2%

Index -1.8% (1)

Footfall 2018

Hammerson +2.5%

Index -1.7% (2)

Dept. store

(aspirational)

Dept. store

(mainstream)

High street

fashion (traditional)


77

2018 leasing performance

1 New permanent leasing only. 2017: average lease term 10 years; average incentive 3 months

2018 leasing and cumulative vs. 2017 and 2016 (£m) 2018 leasing

£m



Temporary and other

0.4

Total 7.3

France flagship leasing key facts





0

2

4

6

8

10

12

0.0

0.5

1.0

1.5

2.0

2.5

Janu

ary

Febru

ary

Marc

h

April

May

June

July

Aug

ust

Sep

tem

ber

Oct

ober

Nove

mber

Dec

ember

Monthly leasing 2018 (LHS) Cumulative leasing activity 2016 (RHS)

Cumulative leasing activity 2017 (RHS) Cumulative leasing activity 2018 (RHS)

Ireland flagship destinations

78

04

Dundrum, Dublin

Ireland flagship destinations

2018 2017

LfL NRI (%) +1.6 +7.4

Occupancy (%) 99.0 99.7



Leasing vs previous passing (% +28 +4

Appendices: Ireland flagship destinations


79 79

Dundrum: repurposing retail space to F&B

4,100 sq m former Hamleys store

Extended and repurposed into 5,220 sq m of catering and leisure space

Rental uplift from €20/sq ft to €37/sq ft

Cost €14.8m

Value uplift €21.1m

YOC 7.9%

Hammerson portfolio (2)


2.2m sq ft of prime space and sustainable development opportunities

80 1 Hammerson share at 31 December 2018 2 Hammerson portfolio participation under 50:50 Allianz joint venture structure 3 50% co-ownership with IPUT (25%) and Irish Life (25%). Development site 100% Hammerson 4 50% co-ownership with Irish Life (50%)

Dundrum

Contracted rent

66%

18%

11% 5%

Dundrum Town Centre

Swords Pavilions

Ilac Shopping Centre

Other (inc. Dublin Central)

The Pavilions, Swords (3) The Ilac Centre (4)

Dundrum Phase 2 Development Site

Dublin Central Development Site (100%)

Hammerson / Allianz 50:50 JV

Total rent: €51m (£45m) (1)

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCMf2wKe7-8cCFUSP2wodhHINTQ&url=http://www.aramarkproperty.ie/portfolio/ilac-centre&bvm=bv.102829193,d.ZGU&psig=AFQjCNFBotYmm3wZ9pXvKjjShBnPItCLAQ&ust=1442489765557485

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCLnDk-e4-8cCFYEJ2wodLlYP3g&url=http://www.snipview.com/q/Pavilions Shopping Centre, Swords&psig=AFQjCNGVNpsbAK8Ngi0h4Ak2rf6AnpWYmA&ust=1442489098867861


Platform encompasses key retail centres in Dublin

81


82

Progress with ERV uplift at Dundrum

1 Dundrum ERV 100%

Uplift in Dundrum ERV since ownership (1)

€65m

c.€90m

€11m

Acquisition ERVJuly 2016

Uplift at Dec 2018 Expected growth2019-2021

Forecast 2021 ERV

+17%

On track with targeted 4-5% ERV CAGR

Dundrum, Dublin

Premium outlets

83

05

Bicester Village, Oxfordshire

Value Retail (1) VIA Outlets (1)

2018 2017 2018 2017

Brand sales (€m) (2) 2,903 2,693 1,071 930

Brand sales growth (%) (3) 8 8 9 13

Footfall (m) (2) 36.8 35.4 30.3 28.3

Average spend per visit (€) (2) 79 76 35 33

Average sales density growth (%) (3) 4 5 5 10

Like-for-like net rental income growth (%) (4) 4 14 10 5

Occupancy (%) (5) 97 95 92 91

Appendices: Premium outlets

84 1 With the exception of LfL net rental income growth, figures reflect overall portfolio performance, not Hammerson’s ownership share. 2017 figures have been restated at 31 December 2018 exchange rates 2 Figures include acquired assets from the acquisition date. 2017 VIA Outlets figures have been restated to reflect more accurate footfall data and include Zweibrücken Fashion Outlet from the acquisition

date 3 Figures include assets owned for 24 months 4 LfL NRI growth now excludes the impact of extensions and re-modellings. VIA Outlets 2017 LfL NRI has been restated for a foreign exchange correction (-4% impact to 2017 LfL NRI) 5 2017 VIA Outlets figures have been restated to reflect spot occupancy rather than assets owned for 12 months



85 Note: TDC (total development cost) at 100%

Kildare Village, Dublin

La Roca Village, Barcelona

2,700m2

15 units

TDC €11m

Opening Q4 2019

5,500m2

29 units

TDC €50-70m

Pipeline

2,500m2

c.25 units

TDC €50-60m

Opening Q4 2020

Expanding outlets through extensions and remodelling

Hede Fashion Outlet, Gothenburg

Value Retail Villages VIA Outlets centres

Bicester Village, Oxford

GLA: 28,000m2

Boutiques: 161

Batavia Stad Amsterdam Fashion Outlet

GLA: 30,900m2 Units: 130

La Roca Village, Barcelona GLA: 23,400m2 Boutiques: 135

Fashion Arena Prague Outlet GLA: 24,100m2 Units: 99

Las Rozas Village, Madrid GLA: 16,500m2 Boutiques: 98

Landquart Fashion Outlet, Zürich GLA: 21,100m2 Units: 79

La Vallée Village, Paris GLA: 21,900m2 Boutiques: 106

Freeport Lisboa Fashion Outlet GLA: 36,500m2 Units: 119

Maasmechelen Village, Brussels GLA: 19,800m2 Boutiques: 97

Hede Fashion Outlet, Gothenburg GLA: 16,100m2 Units: 52

Fidenza Village, Milan GLA: 20,900m2 Boutiques: 120

Mallorca Fashion Outlet GLA: 30,500m2 Units: 78

Wertheim Village, Frankfurt GLA: 21,200m2 Boutiques: 113

Wroclaw Fashion Outlet, Poland GLA: 13,700m2 Units: 88

Ingolstadt Village, Munich GLA: 21,100m2 Boutiques: 113

Seville Fashion Outlet GLA: 15,800m2 Units: 64

Kildare Village, Dublin GLA: 16,700m2 Boutiques: 98

Zweibrücken Fashion Outlet, Germany GLA: 29,100m2 Units: 114

Vila do Conde Porto Fashion Outlet GLA: 27,800m2 Units: 117

Norwegian Outlet, Oslo GLA: 13,300m2 Units: 96

Premium outlets portfolio

86


Holding companies 25% equity

Bicester Village

37

50

La Roca Village

29

41

Las Rozas Village

25

37

La Vallée Village

14

26

Maasmechelen Village

14

27

Fidenza Village

22

34

Wertheim Village

33

45

Ingolstadt Village

2

15

Kildare Village

28

41

1 Total Village ownership calculated as economic entitlement of directly held and indirectly held interests

Village ownership via LPs (%)

Total Village ownership (%) (1)

Hammerson’s total investment in Value Retail

87

45.9%

14.5%

10.2%

4.4%

3.5%

1.8%

19.8%

88 1 Source: Global Blue, (Value Retail Villages and European Snapshot December 2018) 2 Other includes countries which are not in the top 15

Tax free sales in our premium outlets portfolio have outperformed the overall European trend (1)


Outperformance due to enhanced international marketing strategy, an appealing and comprehensive brand offer and a best-in-class hospitality management

Tax free sales by source market

YoY growth (%) (1)

CAGR 2014-2018

Greater China +3% +13%

South and East Asia +15% +15%

Gulf/Middle East +10% +8%

Russia -5% -8%

India +18% +33%

USA +32% +27%

Other (2) +10% +11%

Total +7% +12%

European benchmark (1) -4%

City Quarters

89

06

Birmingham City Centre

Appendices: City Quarters

Ladywood House Birmingham

90

9,400m2 vacant office

Opportunity to upgrade to modern workspace

City centre hub with leading retail and leisure adjacencies

Will drive footfall and spend into the Bullring Estate

Forecast development cost £24m (1)

Short to medium term concepts

1 At Hammerson share

Victoria hotel Leeds

Under offer with international hotel operator

Opportunity to develop 200 bed hotel

Adjacent to Victoria Gate, Leeds

Will complement existing offer and drive evening economy

c.£28m development cost

Dundrum residential Dublin

Opportunity to develop 100 unit residential scheme adjacent to Dundrum

Strong local PRS market

Target planning permission Q4 2019

Phase one of 600 unit opportunity at Dundrum

Will drive additional retail and leisure spend at Dundrum

Forecast development cost £17.5m (1)

Target YOC 5-6%

Key schemes Area Next

planning submission

Start on site

Retail F&B Residential Workspace Leisure Education Culture Hotel Public spaces

Nea

r te

rm

Les 3 Fontaines, Cergy 8,500m2 n/a On site

Citywall House, Southampton 2,800m2 2019 Q2 2020

Dundrum Building 5, Dublin 10,000m2 2019 Q2 2020

Victoria Hotel, Leeds

8,400m2 2019 Q2 2020

Ladywood House, Birmingham 9,400m2 2019 Q2 2020

Str

ate

gic


7 acres 2019

Dundrum Phase 2 5 acres 2020

Broadmead, Bristol 9 acres 2020

Dublin Central 6 acres 2021

Pavilions Phase 3, Swords 13 acres 2021

Victoria Phase 2, Leeds 10 acres 2021

Ma

jor

Brent Cross 15 acres n/a

Croydon 22 acres n/a

Bishopsgate Goodsyard, London

10 acres 2019

TOTAL 97 acres

91

Appendices: City Quarters

The City Quarters opportunity

UK retail parks

92

07

Elliott’s Field Shopping Park, Rugby

93

UK retail parks 2018

2018 2017

LfL NRI (%) −4.3 −2.5

Occupancy (%) 96.9 99.4



Leasing vs previous passing (%) +19 +9

Footfall (%) (1) −1.3 −0.4

1 Footfall: 2018 UK benchmark -0.5% (Source: Springboard Retail Parks index)

Decathlon

Hobbycraft

NCF furnishings

Soletrader

TK Maxx

River Island

H&M

Boots

Starbucks

M&S

Costa

Nandos

Loungers

Fat face (base plus turnover est) Mountain Warehouse Jo Jo

Sole Trader (turnover only)

71% let

Appendices: UK retail parks


94 1 Source: MSCI. Market and portfolio split by number of parks

Shopping parks Hybrid parks Key homeware goods parks

Standard homeware parks

Solus units

Higher rental growth segments

Shopping parks

Hybrid parks

Key homeware goods

Standard homeware

Solus

58% 92%

Hig

her

renta

l g

row

th

UK retail parks market (1) Hammerson portfolio


UK retail parks market split and Hammerson ownership


95

Retail park disposals 2016 to 2018

1 Gross proceeds

2016: average 7% below BV Proceeds (1)

£m Buyer

Thurrock Shopping Park, Thurrock 100 TH Real Estate

Fir Lane, Folkestone (2) 7 The Drapers Company

Cramlington Retail Park, Cramlington 78 Arch (local authority)

Westmorland Retail Park, Cramlington 36 Arch (local authority)


Thanet Retail Parks, Kent 80 BMO (private equity)

Avenue Retail Park, Cardiff (2) 6 Greenstone Oxford Limited


Battery Retail Park, Selly Oak 58 NFU Mutual

Wrekin Retail Park, Telford 35 Ediston/Europa

Imperial Retail Park, Bristol/Fife Central Retail Park, Kirkcaldy 164 Capreon (private equity)

Total 2016 – 2018 £564m

Documents

How to use template…2016 2017 2018 UK shopping centres UK retail parks France shopping centres Ireland shopping centres Outlets Market investment volumes (£bn) (1) 2018 valuation