Mark BourgeoisThe Challenge of Change

11 October 2018

14Countries

UK shopping centres - £3.5bn

France - £1.9bn

Ireland - £1.0bn

UK retail parks - £1.1bn

Premium Outlets - £2.4bn

Development & UK other - £0.7bn

£10.6 billion leading pan-European retail platform

2

33%

18%9%

10%

23%

7%

44%non-UK assets

440mvisitors

4,900Tenants

11 - UK shopping centres

8 - France shopping centres

3 - Ireland shopping centres

15 - UK retail parks

20 - Premium Outlets

Position as at 30 June 2018

57European shopping destinations

Top 3Market position in all chosen sectors

2.3msq m retail space

Hammerson

Hammerson – Our story

3

Westquay, Southampton Mallorca Fashion Outlet

Convenience Experience Luxury

Elliott’s Field, Rugby

Agenda to boost returns

4

Optimised portfolio

Operational excellence

Capital efficiency

3

Higher growthProactive ahead of the market & reduce costs

Reprioritise investments

Accelerate disposals: £1.1bn over two years

Increased geographical diversification

2

1Focus on flagship retail destinations and Premium Outlets

Exit retail parks

4

5 Step change retailer line-up

6

Reduce costs by at least £7m p.a. 7Progress

City Quarters concept

Devoting more resource to experience-enhancing events and digital

8

9

10

Implement £300m share buyback

Deleverage to mid-30s% LTV

Defer Brent Cross development

5

Batavia Stad, AmsterdamCabot Circus, Bristol

Hammerson - The reshaped strategyFlagship retail destinations and premium outlets

6

The Orchard Centre, Didcot Elliott’s Field, Rugby

Hammerson - The reshaped strategyExit retail parks

71 Source: Oxford Economics2 Source: International Labour Organisation 3 Source: GlobalData (Verdict)4 Source: Oxford Economics (rate of increase in spend on leisure relative to total consumer spend)5 Source: Centre for Retail Research (as at June 2018); proforma annual run-rate indicated

Economy Consumer Retail

Disruption over Brexit and economic uncertainty

-6

-4

-2

0

2

4

6

20

00

20

02

20

04

20

06

20

08

20

10

20

12

20

14

20

16

20

18

f

20

20

f

20

22

f

20

24

f

20

26

f

20

28

f

UK GDP growth, historic and forecast (%) (1)

Low unemployment and falling inflation still supportive

Consumer confidence in line with long run average

Cost pressures currently heightened

Record levels of consumer debt

(40)

(30)

(20)

(10)

0

10

Jan-

12

Jun-

12

Nov-

12

Apr-1

3

Sep

-13

Feb-1

4

Jul-1

4

Dec

-14

May-

15

Oct

-15

Mar-1

6

Aug

-16

Jan-

17

Jun-

17

Nov-

17

Apr-1

8

GFK consumer confidence index National living wage

Business rates

Currency movements

0

2

4

6

8

10

2012Q1

2013Q1

2014Q1

2015Q1

2016Q1

2017Q1

2018Q1

UK unemployment rate (%) (2)

Shifting spending patterns

Online penetration(3)

17%

Growing spend on leisure (4)

+30%

Increased store closures and CVAs

0

1,000

2,000

3,000

4,000

2010 2011 2012 2013 2014 2015 2016 2017 2018(YTD)

UK retailer administrations (number of stores)(5)

Unusually turbulent period in UK retailMarket backdrop

8

Strong venues continue to prosperFlight to quality from both shoppers and brands

The Orchard Centre, Didcot Highcross, Leicester

9

Athleisure and well-being

Exceptional dining experiences

Convenient services

Personal luxuries

Well curated fashion

Cars presented stylishly

International (non-US)

Brands communicating direct to consumers

Continued appetite for physical spaceSelected categories expand to drive growth

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

-15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0%

Cha

nge

in s

hare

of le

asi

ng,

by

ERV

(2015 -1

7)

Hammerson instore sales growth, 2017 (%)

Consumer brands

Ath-leisure

Gifts

Convenient services

Leisure

Personal luxuries

Aspirational homeware

Fast fashion

Aspirational fashion

Menswear

HouseholdCasual dining

FootwearCosmetics

Jewellers

High street fashion

Lingerie

ConfectionaryCafeToys Hairdresser

Stationer Accessories Books

Takeaway food

Travel agentHealth foodsDept

store

10(1) Includes leases signed across all Hammerson UK shopping centres 2015 – 2017, measuring change in proportion of new leasing signed; Hammerson same-centre instore sales YoY

Hammerson UK shopping centre leasing growth and instore sales growth(1)

Our insightConsumer trends driving our leasing strategy

11(1) ‘Apparel’ includes clothing, footwear and lingerie

UK shopping centre leasing (£m) (1)

Apparel is lower as a proportion of total leasing

New brands are replacing old: Evolving consumer preferences inform our leasing strategy

39%

33%

0%

20%

40%

60%

80%

100%

2015 2017

Apparel

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

High-street and fast-fashion Athleisure Aspirational fashion

2015 2017Example tenants

UK shopping centre apparel leasing (£m)

Ath-leisure High street fashion

Apparel is a dynamic categoryTilting our mix towards winning brands

12

2003 Bullring, Birmingham

Bullring 15 years onVenues which thrive need constant change

20180 Bullring & Grand Central Birmingham

Doubling of restaurants, aspirational fashion & consumer brands

13

SKATE, Westquay

Footfall +10%

46,000 visitors

Social media reach of 733,000 people

Garden of Pure Imagination, Dundrum

Footfall +8%

Wimbledon screens at the Esplanade, Westquay

Footfall +3.5%

Social media reach of 270,000

Viva Las Riverside, Oracle

Footfall +14%

22,500 visitors

Social media reach of 340,000

Animating places through eventsFocusing on experience with a dynamic programme of events

14

Enhancing the customer experience through innovationDigital driving experience

Style Seeker

Voicebot, Bullring

Frictionless parking,Dundrum

15

Iconic venuesThrilling customers with exceptional design

Westquay, Southampton

Victoria, Leeds Cabot Circus, Bristol

Questions

16

Cabot Circus, Bristol