Helios Re Socimi, S.a. · BME:SCHLR

Helios Re Socimi — Lar España Real Estate SOCIMI — Merger or Acquisition (February 2018)

18 slides from Helios Re Socimi's merger presentation, February 2018

1. Slide 1: New Investment Management Agreement

   New Investment Management Agreement www.larespana.com The Spanish Retail Specialist Player February 2018

2. Slide 2: Index

   Index 01 02 03 04 Executive New Closing Appendix Summary Investment Remarks Management Agreement

3. Slide 3: Executive Summary

   01 Executive Summary

4. Slide 4: Highlights of the new Investment Management Agreement

   01 Executive Summary 4 Highlights of the new Investment Management Agreement 1 Alignment with current Business Plan 7 Enhanced 2 Provides continuity Corporate and certainty Governance 6 Removal of 3 Lower promote management fee equalisation 5 4 Fee partially linked Performance fee to market capped c

5. Slide 5: Highlights of the new Investment Management Agreement (cont’d)

   01 Executive Summary 5 Highlights of the new Investment Management Agreement (cont’d) The new IMA has been unanimously approved by the seven members of the Board (5 independents + 2 proprietary) The new IMA has been agreed in conjunction with a number of refinements to the Investment Strategy set ou

6. Slide 6: New Investment Management Agreement

   02 New Investment Management Agreement

7. Slide 7: Strategy in line with December Analyst Day guidance, with minor refinements

   02 New Investment Management Agreement 7 Strategy in line with December Analyst Day guidance, with minor refinements agreed alongside the new IMA Target Returns  12% Target Annual Return on investments  €380m of divestments over the next 24 months from the office, residential and non-core retail a

8. Slide 8: LERE has been addressing market inputs by renegotiating certain terms of the IMA

   02 New Investment Management Agreement 8 LERE has been addressing market inputs by renegotiating certain terms of the IMA on an ongoing basis Addendum to performance fee accrual i) €10m cap in FY2017 Base Fee Reduction From 1.25% of EPRA NAV ii) Remainder of performance fee accrued in FY2018 1.25% o

9. Slide 9: Lower and capped performance fee, partially linked to share price evolution

   02 New Investment Management Agreement 9 Lower and capped performance fee, which will be partially linked to share price evolution Four key changes to the performance fee Worked Example - Scenario mechanism creating stronger alignment between Illustrative benchmarks at end of previous financial year

10. Slide 10: External management by Grupo Lar continues to be the optimal strategy for Lar España

    02 New Investment Management Agreement 10 External management by Grupo Lar continues to be the optimal strategy for Lar España Retail property requires skilled, hands-on management… …which Grupo Lar is uniquely qualified to provide  Granular unit configuration and diverse  Lar España can draw upon

11. Slide 11: Closing Remarks

    03 Closing Remarks

12. Slide 12: The new IMA will provide LERE with the continuity and flexibility to execute the Business Plan

    03 Closing Remarks 12 The new IMA will provide LERE with the continuity and flexibility to execute the Business Plan 1 Agreement of a new IMA with our existing manager, with a material improvement in terms for our shareholders The Manager has been highly successful in identifying, acquiring, develop

13. Slide 13: Appendix

    04 Appendix

14. Slide 14: Investment Management Agreement – Key Differences

    04 Appendix 14 Investment Management Agreement – Key Differences Old IMA New IMA 1  Over 80% of GAV invested in commercial property  Invest selectively in retail properties across Spain  Office properties across Spain, focusing on Madrid  No investment in office or residential properties and Bar

15. Slide 15: Investment Management Agreement – Key Differences (cont’d)

    04 Appendix 15 Investment Management Agreement – Key Differences (cont’d) Old IMA New IMA 3  Based on Shareholder Return Outperformance, being  Based on a combination of NAV Shareholder Return the amount by which EPRA NAV (1) at the end of the year Outperformance and Market Capitalisation (“MC”) e

16. Slide 16: Investment Management Agreement – Key Differences (cont’d)

    04 Appendix 16 Investment Management Agreement – Key Differences (cont’d) Old IMA New IMA 4  5 years from March 2014  4 years from January 2018 (3 years since termination  Thereafter, to continue for consecutive three-year of the previous IMA) renewal periods until terminated by either the Compan

17. Slide 17: Disclaimer

    17 Disclaimer This document has been prepared by Lar España Real Estate SOCIMI, S.A. (the “Company”) for information purposes only and it is not a regulated information or information which has been subject to prior registration or control by the Spanish Securities Market Commission. This document n

18. Slide 18: New Investment Management Agreement

    New Investment Management Agreement Follow us: www.larespana.com Lar España Real Estate SOCIMI info@larespana.com Lar España App

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