Slide 1: Citycon Presentation Full Year 2007
Cit Citycon P Presentation t ti Full Year 2007
Slide 2: Disclaimer
Disclaimer This document and the information contained herein is strictly confidential and is being provided to you solely for your information. This document may not be retained by you and neither this document nor the information contained herein may be reproduced, further distributed to any other
Slide 3: Contents
Contents Strategy and Highlights Business Environment Market Environment REIT Legislation g in Finland Property Portfolio L t t Acquisitions Latest A i iti Development Projects K fi Key figures Property Portfolio Iso Omena Profitability & Financing •Citycon Full Year 2007 3
Slide 4: Highlights – Goals and Focus
Highlights – Goals and Focus Goals Growth Strategic focus Retail properties only Geographical focus Position Liljeholmstorget in the future Market Leader in Finland St Strong position iti in i Sweden S d Growing in the Baltic Countries Strong operating cash flow Expertise in retail real
Slide 5: Highlights – Financial Targets
Highlights – Financial Targets ► Continued C ti d expansion i through th h acquisitions i iti ► Cumulative C l ti CAPEX sincei 2005 in i and property development excess of EUR 1 billion Growth track ► Solid distribution policy despite growing ► For 2007 Citycon’s per-share number of shares outstandi
Slide 6: Highlights & Business Environment
Highlights & Business Environment •Citycon Full Year 2007 6
Slide 7: Highlights – Latest Highlights
Highlights – Latest Highlights Q4 The market value of property portfolio EUR 2215.7 million (Q3/2007: EUR 2191.2 million) Cit Citycon h has 33 Shopping Successful rights issue and credit facility Centres 2007 Strong growth in retail sales Profit before taxes EUR 253.5 million including EUR 2
Slide 8: Highlights – Geographical Overview
Highlights Geographical Overview Finland – 73.2% of total net rental income in Q4/2007 Sweden (€m) Finland (€m) – Net rental income growth of 10.1%,to EUR 75.7 m 1,587.0 – Net rental income for like-for-like properties rose 517.5 104.3 100.7 by 6.6%. 39.0 75.7 35.4 21.6 – Citycon’s largest ever ac
Slide 9: Business Environment
Business Environment GDP Private Consumption p Source: Nordea •Citycon Full Year 2007 9
Slide 10: Business Environment – Consumer Confidence
Business Environment Consumer Confidence Finland Sweden Estonia Lithuania 25,0 25,0 15,0 15,0 10,0 20,0 10,0 20,0 5,0 5,0 15,0 15,0 0,0 0,0 10,0 -5,0 10,0 -5,0 -10,0 5,0 5,0 -10,0 -15,0 0,0 -20,0 -15,0 0,0 01/04 01/05 01/06 01/07 09108 01/04 01/05 01/06 01/07 01/08 01/04 01/05 01/06 01/07 01/08 01/0
Slide 11: Business Environment – Retail Sales and Rental Levels
Business Environment Retail Sales *) and CPI, Dec 07 Rental Levels of Retail Premises in Finland *) €/ m²/year 15 14.1 % 1600 1400 11% 1200 10 1000 800 600 5.3% 400 5 4% 200 3.5 % 2.6 % 0 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 96 96 97 97 98 98 99 99 00 00 01 01 02 02 03 03 0
Slide 12: Business Environment – REIT Legislation
Business Environment – REIT Legislation Finland’s right-wing Government stated in Government program in April 2007 the intention to review the legislation on real estate investment funds and adopt a new taxation policy for Finnish limited real estate funds to ensure their international competitive
Slide 13: 2007 Acquisitions - Iso Omena “The Big Apple”
2007 Acquisitions - Iso Omena “The Big Apple” Key Figures Opening 2001 Citycon acquired shopping centre Iso Leasable area, m2 61,300 Omena from Doughty Hanson for appr. premises, m2 of which retail premises 49 000 49,000 EUR 329 million; net initial yield 4.5%. Gross floor area, m2 138,458 The c
Slide 14: 2007 Acquisitions - Iso Omena Catchment Area
2007 Acquisitions - Iso Omena “The Big Apple” Iso Omena - Catchment area 10-minute 10 minute drive time 149,700 consumers 66,500 households Purchasing power EUR 2.75 billion 5-minute drive time 35,000 consumers 16,200 households Purchasing power EUR 0.6 0 6 billion billi Catchment Area H
Slide 15: Latest Acquisitions – Strömpilen and Länken
Latest Acquisitions – Strömpilen and Länken Strömpilen*) - Umeå Magistral - Tallinn Total GLA aopprox. 25 000 m2 Total GLA 9500 Occupancy rate ~100 % Occupancy rate 100 % Sales, 2007 (excl. VAT) EUR 88.6 million Sales, 2007 EUR 17.7 million Number of visitors, 2006 2 million Number of visitors, 2007
Slide 16: 2007 Development Projects
2007 Development Projects Shopping Centre Duo Duo is located in one of the Finland's largest suburb, Hervanta in Tampere. Extension was completed in April and the renewed part for Christmas sales. The leasable area of the shopping centre is 15,500m2 The old Hervanta retail centre (5,200 m2)
Slide 17: Property Portfolio
Property Portfolio •Citycon Full Year 2007 17
Slide 18: Highlights – Acquisition Track Record
Highlights – Acquisition Track Record 1) EUR million 350 329 300 250 200 150 104,5 100 80,1 62,1 61,9 59,4 47,4 52,5 37 0 37,0 41,9 50 27,6 25,4 18,7 14,6 17,3 16,5 11,0 0 Jul 2005 Jul 2005 Sep Dec Jan Feb May Jul 2006 Aug Sep Sep Jan Feb May July Sept Sept 2005 2005 2006 2006 2006 2006 2006 2006 20
Slide 19: Property Portfolio - Major Acquisitions 2006 & 2007
Property Portfolio - Major Acquisitions 2006 & 2007 Debt free purchase price with transaction Initial net expenses (acquisition date yield on Post- exchange rates), EUR purchase acquisition Property Location Country million GLA, total m2 GLA total, price % price, Purchase date holdings % holdings, L
Slide 20: Property Portfolio - Development Projects
Property Portfolio - Development Projects On-going development projects, 31 December 2007 Market Area, Post- Total Actual Target Additional information value, EUR sq.m. 1) develop estimated cumulative year of million (31 ment investment, CAPEX by completio investment Dec, 2007) area, m2 MEUR 2) 31 D
Slide 21: Property Portfolio - Development Projects
Property Portfolio - Development Projects Completed or partly completed development projects 1) Post- Estimated total Actual cumulative Additional information Area, sq.m. development investment, MEUR CAPEX by the end area, sq.m. 2) of the period, MEUR Property Location Country Duo Tampere FIN 5 000
Slide 22: Property Portfolio - Development Projects
Property Portfolio - Development Projects Development projects under planning – Will be updated as soon as the Annual Report is published Citycon's Board of Directors has not yet made a decision on the development project, but it is under planning, an alteration of the city plan is pending or Cityco
Slide 23: Property Portfolio - Development Projects
Property Portfolio - Development Projects Potential development project - Will be updated as soon as the Annual Report is published Citycon is analysing opportunities for the development and/extension of for example the properties below. Neither an alteration of the city plan has been applied nor an
Slide 24: Property Portfolio - Development Projects
Property Portfolio - Development Projects Lippulaiva now and one alternative of the future lay-out Liljeholmstorget now and in the •Citycon Full Year 2007 future 24
Slide 25: Key Figures - Property Portfolio
Key Figures - Property Portfolio 3,700 (3,080) leases with an average length of 3.0 (2.9) years Breakdown of property portfolio Net rental income increased by 24.9% to EUR 103.4 million 50% 5.0 23.4 % 71.6 % GLA totalled grew by 25% to 923, 980 m2 Net rental income for like-for-like properti
Slide 26: Property Portfolio – Finland
Property Portfolio – Finland Finland Q4 2007 Q4 2006 Q3 2007 2007 2006 Turnover, EUR million 30.2 24.0 25.5 104.3 95.8 Net fair value gains on investment property, EUR million -2.1 13.0 16.2 148.5 104.8 Operating profit, EUR million 17.5 30.2 33.9 218.7 176.1 Gross rental income, EUR million 29.1 23
Slide 27: Property Portfolio – Sweden
Property Portfolio – Sweden Sweden Q4 2007 Q4 2006 Q3 2007 2007 2006 Turnover, EUR million 11.1 7.2 10.1 39.0 17.3 Net fair value gains on investment property, EUR million 2.7 9.1 2.3 55.6 8.7 Operating profit, EUR million 7.3 11.9 7.6 74.3 16.8 Gross rental income, EUR million 94 9.4 66 6.6 97 9.7
Slide 28: Property Portfolio – The Baltic Countries
Property Portfolio – The Baltic Countries The Baltic Countries Q4 2007 Q4 2006 Q3 2007 2007 2006 Turnover, EUR million 20 2.0 18 1.8 23 2.3 80 8.0 62 6.2 Net fair value gains on investment property, EUR million 0.1 1.1 2.5 9.3 6.6 Operating profit, EUR million 1.2 2.2 4.2 14.5 10.9 Gross rental inco
Slide 29: Key Figures
Key Figures •Citycon Full Year 2007 29
Slide 30: Income Statement - Snapshot
Income Statement - Snapshot Q4/2007 Q4/2006 2 007 2 006 Gross rental income 40.6 31.7 143.7 115.1 Turnover 43.3 33.0 151.4 119.4 Net rental income 27.1 22.1 103.4 82.8 Administrative expenses 3.9 3.2 16.5 12.9 Net Fair value gains on investment property 0.7 23.1 213.4 120.1 Operating profit 24.5 42.
Slide 31: Balance Sheet – Snapshot, Key Figures
Balance Sheet – Snapshot, Key Figures Balance Sheet, EUR million 2 007 2 006 Fair market value of investment properties 2215 7 2215.7 1447 9 1447.9 Total non-current assets 2260.5 1453.3 Current assets 48.1 33.1 Assets total 2308.6 1486.4 Total share holders equity 1010.9 580.3 Liabilities 1297.7 90
Slide 32: Key figures – EPRA NAV versus Share Turnover and Profit
Key figures EPRA NAV versus Share Turnover and Profit •Citycon Full Year 2007 32
Slide 33: Consolidated cash flow statement FY 2007
Consolidated cash flow statement FY 2007 EUR MILLION FY 2007 FY 2006 Cash from operations improved by some 23 % due to: Improved cash generation through higher profits Cash flow from operating activities Profit before taxes 253,5 165,6 Cash financials boosted by realized FX gains Adjustments -
Slide 34: Property Portfolio – Net Rental Income 2006 versus 2007
Property Portfolio – Net Rental Income 2006 versus 2007 116,0 20,7 0,6 0,8 2,4 96,0 -3,9 103,4 76,0 82,8 56 0 56,0 36,0 16,0 -4,0 1-12 2006 Acquistions Development Divestments Like-for-like Other 1-12 2007 •Citycon Full Year 2007 34
Slide 35: Key Figures – Financing Overview
Key Figures – Financing Overview Maturity profile of loans and derivatives Interest-bearing debt by fixing type 2008 - 2016 EUR 1,171.4 million 1) 500 EUR 1 1,171.4m 171 4 Floating rate debt Fixed rate debt 450 433 EUR 584.5m 32% 18% 400 EUR 50.0m 350 300 253 250 194 200 150 105 112 92 100 83 70 72
Slide 36: Key Figures - Debt Portfolio
Key Figures - Debt Portfolio Breakdown by debt type Breakdown by currency EUR 1,171.4 million 1) EUR 1,171.4 million 1) Other O LTL 1% % 14% Syndicated term loans EEK 3% 52% EUR CP’s 67% 5% SEK 29% Revolving credit facility 14% Bonds 15% The backbone of the debt financing continues to be the syndi
Slide 37: Key Figures – Interest Rates and LTV
Key Figures – Interest Rates and LTV Quarterly development of interest rates 1) Net debt and LTV-% 2) 5,5 % 1 200 1 184,3 70 % 1 147,3 5,0 % 1 100 60 % 4,5 % 1 000 50 % 4,0 , % 900 878,2 40 % 863 3 863,3 811,2 3,5 % 800 783,3 30 % 3,0 % 700 20 % 652,3 608,5 2,5 % 600 10 % Q1-06 Q2-06 Q3-06 Q4-06 Q1-
Slide 38: Breakdown of Financial Expenses
Breakdown of Financial Expenses 4q 3q 4q Change-% Change-% YTD YTD Change-% Net Financial Expenses (EUR million) 2007 2007 2006 (y-o-y) (q-o-q) 2007 2006 (YTD) Financial Expenses: Interest expenses -14,2 14 2 -11,2 11 2 -9,4 94 52 % 27 % -44,7 44 7 -31,7 31 7 41 % Foreign exchange losses -0,1 0,1 -0
Slide 39: Net Financial Expenses Q3 vs Q4 2007
Net Financial Expenses Q3 vs Q4 2007 18 0,2 1,6 2,5 16 0,0 14 14,5 13,3 12 10 8 6 4 2 0 3Q2007 Interest expense Fees Derivative valuation Other 4Q2007 •Citycon Full Year 2007 39
Slide 40: Key Figures – Share Performance
Key Figures – Share Performance 1) 7 6 5 4 3 2 1 0 01-04 03-04 05-04 07-04 09-04 11-04 01-05 03-05 05-05 07-05 09-05 11-05 01-06 03-06 05-06 07-06 09-06 11-06 01-07 03-07 05-07 07-07 09-07 11-07 FTSE EPRA OMX Helsinki CAP Citycon •Citycon Full Year 2007 40 1) Starting values of FTSE EPRA index and O
Slide 41: Key Figures - Share Data
Key Figures - Share Data Market capitalisation totalled EUR 850 million as of 13 February 2008 Breakdown of shareholders 95.5 % of shareholders are international as of 31 December, 2007 4.50 % 2090 registered shareholder 95.50 % Largest Share holders Gazit –Globe 39.35% Fidelity Internation
Slide 42: Backup Information
Backup Information •Citycon Full Year 2007 42
Slide 43: Citycon in Brief
Citycon in Brief Mission Demonstrating expertise in retail property business, Citycon not only owns, manages, leases and d develops l shopping h i centres t andd other th retail t il properties ti b butt also l d develops l new retail t il premises. i Vision Citycon aims to expand its property p
Slide 44: Citycon in Brief - Background
Citycon in Brief - Background Citycon’s path to becoming the market leader and an international property investment company 1988 2004 2006 Quoted on the Main List of Citycon continues to Helsinki Stock Exchange Office Citycon continues to growth Ownership structure expand acquiring several p
Slide 45: Highlights – Country Organisation
Highlights – Country Organisation •Citycon Full Year 2007 45
Slide 46: Citycon in Brief – Management
Citycon in Brief Management Petri Olkinuora, CEO Eero Sihvonen, CFO Outi Raekivi Head of Legal Affairs Kaisa Vuorio Ulf Attebrant Harri Holmström Vice President Vice President Vice President Finnish Operations Swedish Operations Baltic Operations •Citycon Full Year 2007 46
Slide 47: Citycon Properties – Core Shopping Centres
Citycon Properties – Core Shopping Centres Lippulaiva Myyrmanni Trio Built 1993 1994 1977/87 GLA 23.000 m2 40.200 m2 32.200 m2 Owned 100 % 100 % 89.3 % Finland F Iso Omena 2001 Koskikeskus Forum Columbus 61.300 m2 1988 1953/91 1997/07 100 00 % 25.700 m2 17 400 m2 17.400 20.400 m2 88 % Citycon 69 % 1
Slide 48: Contact Information
Contact Information Investor Relations Mr Petri Olkinuora CEO Strömpilen Tel. +358 9 6803 6738 Umeå Fax +358 9 6803 6788 Petri.Olkinuora@citycon.fi Mr Eero Sihvonen CFO Tel. +358 50 5579 137 Fax +358 9 6803 6788 Eero.Sihvonen@citycon.fi Ms Hanna Jaakkola Investor Relations Officer Tel. +358 40 5666