Plaza Centers N.v. · LSE:PLAZ

Plaza Centers — FY2014 Earnings Presentation

39 slides from Plaza Centers's earnings presentation, Mar 19, 2015

1. Slide 1: Full Year Results for the year ended 31 December 2014

   Full Year Results for the year ended 31 December 2014 19 March 2015

2. Slide 2: Disclaimer

   Disclaimer The information contained in this presentation has not been independently verified and no representation or warranty, express or implied, is made by the Plaza Centers N.V. (the “Company”) or any of their respective agents or affiliates as to, and no reliance should be placed on, the fairn

3. Slide 3: Agenda

   Agenda SECTION 1 Financial Highlights SECTION 2 Operational Highlights SECTION 3 Summary and Outlook APPENDIX A Liquidity structure APPENDIX B Projects Overview 3

4. Slide 4: Financial Highlights

   Financial Highlights  Reduction in total assets to €466 million (31 December 2013: €586 million), primarily due to the impairment of trading properties and equity accounted investees, and to the strategic disposal of Kragujevac Plaza, Serbia.  A 3.5% increase in 2014 in NOI from the operation of s

5. Slide 5: Financial Highlights contd.

   Financial Highlights contd.  Basic and diluted loss per share of €0.39 (31 December 2013: loss per share of €0.73).  Consolidated cash position at year end (including restricted bank deposits, short term deposits and held for trading financial assets) of €41.7 million (31 December 2013: €33.7 mill

6. Slide 6: Financial Overview

   Financial Overview Results (in Thousand EUR) For the year ended December 31, 2014 2013 Continuing operations Revenue from disposal of trading property (1) 38,600 - Rental income (2) 22,112 23,678 Revenues from entertainment centers (3) 1,713 3,345 62,425 27,023 Cost of trading property disposed (1)

7. Slide 7: Financial Overview

   Financial Overview Results (in Thousand EUR) cont. 2014 2013 Loss from disposal Trading Property -573 -346 Write-down of Trading Properties (1) -87,489 -117,913 Write-down of equity-accounted investees, net (2) -1,687 -56,417 Loss from disposal of equity accounted investees (holding undeveloped Trad

8. Slide 8: Impairment of trading properties

    Impairment of trading properties Results (in Thousand EUR) cont. The year ended December 31, Project name (location) 2014 2013 Iasi (Iasi, Romania) 4,280 1,582 Koregaon Park (Pune, India) 10,059 15,564 2,500 29,347 Belgrade Plaza (Belgrade, Serbia) Helios Plaza (Athens, Greece) 10,901 12,267 2,080

9. Slide 9: Financial Overview

   Financial Overview Results (in Thousand EUR) cont. 2014 2013 Gain from restructuring plan(*) 3,443 - Finance income (1) 1,263 1,288 Finance costs (2) -36,839 -40,632 Net finance costs -35,576 -39,344 Loss before income tax -120,969 -224,394 Tax benefit (3) 1,282 6,256 Loss from continuing operations

10. Slide 10: Financial Overview (Cont.)

    Financial Overview (Cont.) NOTES TO THE RESULTS (1) Finance income remained at the same level (€1.3 million) with 2014 income attributable mainly to the settlement of the airplane loan (with a gain recorded of €0.6 million) and hedging activities. (2) Finance expenses decreased from €40.6 million to

11. Slide 11: Current consolidated cash balance – €39.5 million

    Financial Overview (Cont.) Balance sheet and cash flow  Net Asset Value decreased by 44% to €153 million (31 December 2013: €274 million) primarily as a result of the impairment of assets, mainly in Romania, Greece and India.  Consolidated cash position at year end (including restricted bank depos

12. Slide 12: Company Net Operating Income (NOI)

    Company Net Operating Income (“NOI”) The following table presents the 2014 NOI performance of shopping centres: Shopping centre name NOI 2014 (€M) NOI 2013 (€M) Remarks Torun 7 6 TK Maxx major tenant opened in late March 2014. Suwalki 3.5 3.2 Zgorzelec 1.4 1.1 Liberec 0.7 1 Koregaon Park -1.1 -0.7 K

13. Slide 13: Company Trading property breakdown

    Company Trading property breakdown Asset name Value Dec. 31, 2014 (€M) Remarks Casa Radio (Romania) 116.1 100% of the asset Torun (Poland) 68 Suwalki (Poland) 39.2 Koregaon Park (India) 33.8 Visnjicka (Serbia) 18.9 Liberec (Czech Republic) 15.7 Zgorzelec (Poland) 13.5 Belgrade MUP (Serbia) 13.7 Subt

14. Slide 14: Company NAV

    Company NAV  Net Asset Value per share decreased to 0.22 €/share from 0.92 €/share at year end 2013, mainly as a result of further impairments and dilution as a result of rights issuance below market value (basic NAV/share 0.51 €/share). ― Romania (€51 million); India (€12 million); Greece (€11 mil

15. Slide 15: Key Highlights 2014 – Operational

    Key Highlights 2014 – Operational  During the period, Plaza made significant headway in the repositioning of its portfolio, disposing of a number of non-core assets: – In the fourth quarter of 2014, 18 months ahead of schedule, Plaza successfully completed the disposal of Kragujevac Plaza in Serbia

16. Slide 16: Key Highlights 2014 – Operational (cont.)

    Key Highlights 2014 – Operational (cont.)  Improved occupancy and turnover were recorded across the Company’s existing shopping and entertainment centres in the CEE, with the overall portfolio occupancy level increasing to 94% as of 31 December 2014. – At Torun Plaza, Poland, occupancy increased to

17. Slide 17: Markets of Operation - Active shopping and entertainment centres

    Markets of Operation - Active shopping and entertainment centres Poland Latvia • Population – 38.4 million •Population – 2.2 million • 2013 Inflation Rate – 1% • 2013 Inflation Rate – 0.2% • 2013 GDP per capita –US$ 21,100 • 2013 GDP per capita – US$ 19,100 Operating Malls - 3 Operating Malls - 1 Cu

18. Slide 18: Active shopping and entertainment centres

    Active shopping and entertainment centres Liberec Plaza, Czech Republic Riga Plaza, Latvia  GLA – 17,000 sqm  GLA - 49,000 sqm  Occupancy – 84%  Occupancy – 99.5% Zgorzelec Plaza, Poland Suwalki Plaza, Poland  GLA – 13,000 sqm  GLA - 20,000 sqm  Occupancy – 95%  Occupancy – 98% 18

19. Slide 19: Active shopping and entertainment centres

    Active shopping and entertainment centres Torun Plaza, Poland  GLA - 40,000 sqm  Occupancy – 93% 19

20. Slide 20: Proven business model

    Proven business model  19-year track record of developing , constructing, operating, maintaining , letting and selling shopping and entertainment centres in CEE ― Plaza has been active in the region since 1996 and was the first to develop western-style shopping and entertainment centre in Hungary.

21. Slide 21: Outlook

    Outlook  2014 marked a year of progress for Plaza as the Company successfully completed the Dutch restructuring plan, with 92% of creditors approving the plan in June and the Dutch court’s formal and irrevocable approval being granted in July, just seven months after the Company made its initial an

22. Slide 22: Outlook

    Outlook  Day to day, we will continue to pursue our intensive asset management strategy which has seen clear success at our income-generating centres in the CEE, where our focus remains on initiatives that will drive occupancy levels, footfall and turnover to maximise income and deliver value. 22

23. Slide 23: Outlook

    Outlook “While there remains a lot to do in the short and medium term, we have confidence in the long term future growth of the Company and the management is resolute in its belief that, with the ongoing support of our bondholders and shareholders, the delivery of the strategy, together with the bri

24. Slide 24: Appendix A: Liquidity Structure

    Appendix A: Liquidity Sturcure

25. Slide 25: Debt & Liquidity Structure as at 31 December 2014

    Debt & Liquidity Structure as at 31 December 2014 Debt Structure - 31.12.2014 (EUR M) Estimation Debentures(1) 192 CEE - Operating Malls 149 Debt Bank Loans CEE - Other 10 India(2) 23 Total Debt 374 Liquid balances -Consolidated 31 Resources Finacial Instruments and restricted bank deposits(3) 8 Tot

26. Slide 26: Appendix B: Current Projects

    Appendix B: Current Projects

27. Slide 27: Portfolio Summary – by Country

    Portfolio Summary – by Country Total 26 Assets in nine countries 3 5 1 1 2 3 1 1 2 1 1 1 1 1 1 1 Poland Serbia India Romania Hungary Czech Bulgaria Greece Latvia Republic Completed & Active (6) Offices (2) Under Development (6) Plots Pipeline (12) 27

28. Slide 28: Projects overview – Completed Projects

    Projects overview – Completed Projects Torun Plaza (Poland) Kragujevac Plaza (Serbia)  City: Torun, Poland  City: Kragujevac (Serbia)  Type: Shopping & entertainment centre  Type: Shopping & entertainment centre  Size: 40,000 (GLA)  Size: 22,000 (GLA)  Plaza Share: 100%  Plaza Share: 100% 

29. Slide 29: Projects overview – Completed Projects

    Projects overview – Completed Projects Liberec Plaza (Czech Republic) Riga Plaza (Latvia)  City: Liberec, Czech Republic  City: Riga, Latvia  Type: Shopping & entertainment centre  Type: Shopping & entertainment centre  Size: 17,000 (GLA)  Size: 49,000 (GLA)  Plaza Share: 100%  Plaza Share:

30. Slide 30: Projects overview - Poland

    Projects overview - Poland Lodz Plaza  City: Lodz  Type: Shopping & entertainment centre  Size: 35,000 (GLA)  Plaza Share: 100%  Expected Completion Date: 2017  Status: Planning and permits stage Leszno Plaza Kielce Plaza  City: Leszno  City: Kielce  Plot size: 18,000 sqm  Plot size: 25,00

31. Slide 31: Projects overview – Serbia

    Projects overview – Serbia Belgrade Plaza Visnjicka Plaza  City: Belgrade  City: Belgrade  Type: Mixed use (offices, Hotel & retail)  Type: Shopping & entertainment centre  Size: 63,000 (GBA)  Size: 32,000 (GLA)  Plaza Share: 100%  Plaza Share: 100%  Expected Completion Date: 2017  Expecte

32. Slide 32: Projects overview – India

    Projects overview – India Bangalore Chennai  City: Bangalore  City: Chennai  Type: Residential  Type: Residential  Plot Size: 218,500  Size: 172,000 (for sale)  Plaza Share: 25%  Plaza Share: 40%  Status: Planning and permits stage  Expected Completion Date: 2016-2020  Status: Planning an

33. Slide 33: Projects overview - Romania

    Projects overview - Romania Casa Radio Timisoara Plaza  City: Bucharest  City: Timisoara  Type: Mixed use  Type: Shopping & entertainment centre  Size: 467,000 (GBA) (including parking)  Size: 40,000 (GLA)  Plaza Share: 75%  Plaza Share: 100%  Expected Completion Date Phase 1: 2017  Expect

34. Slide 34: Projects overview - Romania

    Projects overview - Romania Csiki Plaza Constanta Plaza  City: Constanta  City: Miercurea Ciuc  Type: Shopping & entertainment centre  Type: Shopping & entertainment centre  Plot Size: 26,500  Plot Size: 36,500  Plaza Share: 100%  Plaza Share: 100% 34

35. Slide 35: Projects overview - Hungary

    Projects overview - Hungary Arena Extension  City: Budapest  Type: Office  Plot Size: 22,000  Plaza Share: 100% (land use rights) 35

36. Slide 36: Projects overview – Bulgaria

    Projects overview – Bulgaria Shumen Plaza  City: Shumen  Type: Shopping & entertainment centre  Plot Size: 26,000  Plaza Share: 100% 36

37. Slide 37: Projects overview – Greece

    Projects overview – Greece Pireas Plaza  City: Athens (Greece)  Type: Offices  Plot Size: 15,000  Plaza Share: 100% 37

38. Slide 38: Projects overview – Residential Projects

    Projects overview – Residential Projects Lodz Residential (Poland) Plaza Centers  City: Lodz, Poland  Type: Residential  Plot Size: 33,000  Plaza Share: 100% 38

39. Slide 39: Projects overview – Office buildings

    Projects overview – Office buildings David House (Hungary) Palazzo Ducale (Romania)  City: Budapest, Hungary  City: Bucharest, Romania  Type: Office  Type: Office  Size: 2,000 (GLA)  Size: 700 (GLA)  Plaza Share: 100%  Plaza Share: 100%  Status: Operating  Status: Operating 39

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