Slide 1: A High Growth Story in 2023 Paving the Way for Future Operating Momentum
A H I G H G R O W T H S TO RY I N 2 0 2 3 PAV I N G T H E WAY F O R F U T U R E O P E R AT I N G M O M E N T U M FEBRUARY 15, 2024
Slide 2: Disclaimer
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 DISCLAIMER This document was prepared by Klépierre S.A. (the “Company”) solely for the purpose of presenting Klépierre’s 2023 full-year earnings published on February 14, 2024. This document is not to be reproduced or distributed, in whole or in part, by a
Slide 3: Table of Contents
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 TABLE OF CONTENTS 01 02 03 A RECORD YEAR 2023 FINANCING SERVING 2024 GROWTH HIGHLIGHTS METRICS 04 05 ESG KPIS DISTRIBUTION & OUTLOOK 3
Slide 4: A Record Year Serving 2024 Growth
01 A RECORD YEAR SERVING 2024 GROWTH 4
Slide 5: We outperformed our 2023 guidance and delivered double digit growth
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 WE OUTPERFORMED OUR 2023 GUIDANCE AND DELIVERED DOUBLE DIGIT GROWTH INCREASING FROM TOP LINE TO BOTTOM LINE €2.48(1) 2023 net current cash flow per share, up 10.7% vs. 2022(2) and 5.5% above initial guidance +9.6% EBITDA vs. 2022 +8.8% Net rental income li
Slide 6: Our business performance indicators demonstrate the strength of our platform
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 OUR BUSINESS PERFORMANCE INDICATORS DEMONSTRATE THE STRENGTH OF OUR PLATFORM +6% Retailer sales growth 96% Occupancy rate +4.4% Reversion 5.1 years Average lease duration 6
Slide 7: Our strategy is delivering
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 OUR STRATEGY IS DELIVERING 1 A leading European portfolio with no physical substitute… at the heart of Europe’s largest cities, with 1 million inhabitants catchment areas and 20% higher revenue per capita than national average 2 constantly adapting to reta
Slide 8: We actively adapt the mix to match consumers' expectations
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 WE ACTIVELY ADAPT THE MIX TO MATCH CONSUMERS’ EXPECTATIONS Change in retail mix over the last 5 years (share of total retailer sales) OTHER (-1P.P.) Attracting and upsizing FOOD & 6% BEVERAGE FASHION omnichannel retailers = 11% 7% (-3P.P.) 11% 36% HOUSEHOL
Slide 9: Retailer demand drives strong leasing performance
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 RETAILER DEMAND DRIVES STRONG LEASING PERFORMANCE Deals signed by segment (in sq.m.) CULTURE, SPORTS & FASHION OTHER 1,658 36% 18% LEISURE 17% deals signed +22% year-on-year 96% Occupancy rate HOUSEHOLD FOOD HEALTH & +20bps year-on-year EQUIPMENT 9% BEAUTY
Slide 10: Well above indexation like-for-like net rental income growth, up 8.8%
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 WELL ABOVE INDEXATION LIKE-FOR-LIKE(1) NET RENTAL INCOME GROWTH, UP 8.8% 300 basis points above indexation Stable occupancy cost ratio at 12.8%, on the back of a consistent increase in retailer sales Solid operating achievements: • Collection rate up 110 b
Slide 11: Operating excellence to continue in 2024 to deliver EBITDA growth
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 OPERATING EXCELLENCE IS TO CONTINUE IN 2024 TO DELIVER EBITDA GROWTH Incremental sources of organic growth… • Supportive indexation • Growing additional revenues • Further occupancy enhancement • Rent collection increase …to deliver at least 4% EBITDA grow
Slide 12: Long term interest rates have been declining recently
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 LONG TERM INTEREST RATES HAVE BEEN DECLINING RECENTLY EUR 10 Years Interest Rate Swap(1) 4 3 2 02/01/2023 02/04/2023 02/07/2023 02/10/2023 02/01/2024 (1) Source: Bloomberg. 12
Slide 13: Valuations have stabilized, paving the way for a bottom out
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 IN THIS CONTEXT, VALUATIONS HAVE STABILIZED, PAVING THE WAY FOR A BOTTOM OUT €19,331m €30.1(1) EPRA NTA per share Stable over 6 months Stable over 6 months €169 million of disposals(2), 20% above appraised values (1) NTA per share figures are rounded to th
Slide 14: Sector leading credit metrics
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 SECTOR LEADING CREDIT METRICS Net Debt Interest to EBITDA Coverage ratio 7.4x 8.4x Average debt Average cost Rate hedging maturity of debt 98% for 2024 6.3 years 1.5% 84% for 2025 14
Slide 15: An extended access to the financing market
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 AN EXTENDED ACCESS TO THE FINANCING MARKET €1,040m of new financings raised in 2023 with an average maturity of 6.7 years €378m €412m €725 million Mortgage loans Unsecured bank loans of revolving credit facilities renewed or signed in 2023 €3 billion Liqui
Slide 16: Unlock embedded value
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 UNLOCK EMBEDDED VALUE Solid balance-sheet and disposals Deployment into high return underpin future growth opportunities • Balance sheet capacities • Extension of assets crystallizing high Net debt / EBITDA standing at 7.4x leasing tension €750m pipeline a
Slide 17: We invest in our properties: opening of Grand Place in November 2023
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 WE INVEST IN OUR PROPERTIES: OPENING OF GRAND PLACE(1) IN NOVEMBER 2023 Main project characteristics • Project delivered on time and on budget • Now showcasing a renewed retail offer and new generation of food & beverage brands • €65m total investment • Fu
Slide 18: Maremagnum, another high-yielding development
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 MAREMAGNUM, ANOTHER HIGH-YIELDING DEVELOPMENT Barcelona, Spain Maremagnum to host the first Time Out Market in Spain. Ready for the America’s cup in H1 2024. • Rooftop: 5,200 sq.m • Total investment: €15 million • Opening: H1 2024 • Yield on cost: 13.5% •
Slide 19: And we engage a new project in Odysseum
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 AND WE ENGAGE A NEW PROJECT IN ODYSSEUM Montpellier, France • 18,500 sq.m of retail restructuring, including 8,200 sq.m. of extension • Delivery in 2025/26 • Investment €56 million • Yield-on-cost 9.0% 19
Slide 20: Development drive sales and footfall
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 DEVELOPMENT DRIVE SALES AND FOOTFALL Renovation and extension Extension Refurbishment Extension Foodcourt extension in 2023 in 2022 in 2023 in 2019 in 2019 Retailer Sales +30% +77% +79% +26% +19% (vs. 2022) in December 2023 Footfall (vs. 2022) +60% +40% +2
Slide 21: Create value through acquisitions
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 CREATE VALUE THROUGH ACQUISITIONS Acquisition of 25% of O’Parinor to be closed in the coming weeks • Asset and property management contract of the mall for a period of 15 years • Significant value creation illustrated by a strong double digit annual levere
Slide 22: As witnessed by our strong track record
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 AS WITNESSED BY OUR STRONG TRACK RECORD +61%(1) +34%(1) +33%(1) Value creation since acquisition Value creation since acquisition Value creation since acquisition in 2017 in 2015 in 2015 (1) Change between the acquisition value and the December 2023 expert
Slide 23: Our leading portfolio is perfectly positioned for long-term rental growth
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 OUR LEADING PORTFOLIO IS PERFECTLY POSITIONED FOR LONG-TERM RENTAL GROWTH 700+m visitors each year Growing sales and low OCRs Preferred locations for retailers Elevated NPS(1) score: 62 pts (+35 pts versus 2017) Evolving tenant mix and property redevelopme
Slide 24: Klépierre is a cash dividend story
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 KLEPIERRE IS A CASH DIVIDEND STORY €1.80 / share Proposed dividend per share for 2023 €1.80(1) 73% distribution rate €1.75 €1.70 +3% €1.00 dividend growth Year-on-Year 8% 2020 2021 2022 2023 Average 2023 dividend yield (1) To be paid in two equal installme
Slide 25: 2024 Outlook
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 2024 OUTLOOK We expect to deliver at least 4% EBITDA growth in 2024 Cost of net debt will increase by €0.11 per share in 2024 2024 Net current cash flow per share of €2.45 - €2.50 25
Slide 26: We remain at the forefront of ESG best practices in real estate
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 WE REMAIN AT THE FOREFRONT OF ESG BEST PRACTICES IN REAL ESTATE Klépierre member of the CDP’s A list Energy intensity of Reaching −48% 70 kWh/sq.m. Net Zero Carbon BY 2030 BY 2030 Klépierre is among the few Reduction in energy consumption companies with th
Slide 27: 2023 Highlights
02 2023 HIGHLIGHTS 28
Slide 28: Retailer sales continued to significantly progress
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 RETAILER SALES CONTINUED TO SIGNIFICANTLY PROGRESS 2023 retailer sales by region compared to 2022 +9% +8% +7% +6% +4% +4% Group Netherlands / Germany Iberia Scandinavia Italy France (share of total sales) / Central Europe (11%) (11%) (24%) (41%) (13%) 2023
Slide 29: We leverage growing demand for health & beauty, sport and entertainment
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 WE LEVERAGE GROWING DEMAND FOR HEALTH & BEAUTY, SPORT AND ENTERTAINMENT Solid shoppers’ demand for cosmetics • +14.5% retailer sales since 2019 • +6.9% reversion in 2023 HEALTH & BEAUTY • +191,848 sq.m. signed since 2020 Benefits from the deepening interes
Slide 30: Earnings indicators
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 EARNINGS INDICATORS(1) TOTAL SHARE 2022 2023 CHANGE (in millions of euros) Net Rental Income 926.6 1,005.0 +8.8% (like-for-like change) EBITDA(2) 841.1 921.4 +9.6% NET CURRENT CASH-FLOW 742.4 811.6 +9.3% Group share NET CURRENT CASH FLOW (€/PER SHARE) 2.24
Slide 31: 2023 net current cash flow per share, up 11%
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 2023 NET CURRENT CASH FLOW PER SHARE, UP 11% +€0.28 +€0.01 +€0.01 €2.48(2) €2.24(1) -€0.07 Management 2022 Current tax 2023 Change in NRI & other income and Cost of debt NCCF expenses NCCF Payroll & G&A 2023 Net Current Cash Flow per share was up €0.24, ma
Slide 32: Stable portfolio valuation
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 STABLE PORTFOLIO VALUATION CHANGE OVER 6 MONTHS (€m, total share, inc. transfer taxes) 12/31/2023 % of total portfolio 06/30/2023 Reported LfL(b) France 7,631 39.5% 7,835 −2.6% −2.0% Italy 4,241 21.9% 4,156 +2.1% +2.6% Scandinavia 2,474 12.8% 2,448 +1.1% −
Slide 33: Stable EPRA net asset value metrics over 6 months
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 STABLE EPRA NET ASSET VALUE METRICS OVER 6 MONTHS EPRA NET ASSET VALUES(1) DECEMBER 2023 EPRA NRV €33.7 EPRA NTA €30.1 EPRA NDV €27.7 (1) Per share figures are rounded to the nearest 10 cents. 34
Slide 34: Financing Metrics
03 FINANCING METRICS 35
Slide 35: A sector-leading balance sheet
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 A SECTOR-LEADING BALANCE SHEET Total share KEY CREDIT METRICS COST OF DEBT AS OF DECEMBER 31, 2023 €7,349m Net debt down €130m over 1 year 1.5% Cost of debt for 2023 7.4x Net debt to EBITDA 8.4x High level of ICR 38.0% LTV 6.3 years Average debt maturity 9
Slide 36: Large covenant headroom and strong credit ratings
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 WE HAVE LARGE COVENANT HEADROOM AND RELY ON STRONG CREDIT RATINGS Covenants applicable to Klépierre SA financing Bank and bonds covenants(1) December 2023 Loan-to-Value ≤60% 38.0% ICR(2) ≥2.0x 8.4x Long-term rating of BBB+ Senior unsecured rating of Secure
Slide 37: Our sound liquidity position covers 39% of our gross debt
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 OUR SOUND LIQUIDITY POSITION COVERS 39% OF OUR GROSS DEBT LIQUIDITY POSITION AS OF DECEMBER 31, 2023: €3.0 BILLION, COVERING KLÉPIERRE’S REFINANCING NEEDS UNTIL 2027. €0.3bn €0.4bn Cash and equivalents Other credit facilities Split of liquidity available €
Slide 38: Well spread debt maturities with a 6.3 years average maturity
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 WELL SPREAD DEBT MATURITIES WITH A 6.3 YEARS AVERAGE MATURITY DEBT MATURITY SCHEDULE FINANCING BREAKDOWN BY TYPE OF RESOURCE (EXCLUDING COMMERCIAL PAPERS) AS OF DECEMBER 31, 2023 (UTILIZATIONS, TOTAL SHARE) 11% Commercial paper 1,228 13% Mortgage loan 795
Slide 39: ESG KPIs
04 ESG KPIS 40
Slide 40: The Group has announced its renewed CSR ambition for 2030
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 THE GROUP HAS ANNOUNCED ITS RENEWED CSR AMBITION FOR 2030 41
Slide 41: Achieving net zero by 2030
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 BUILDING THE MOST SUSTAINABLE PLATFORM FOR COMMERCE ACHIEVING NET ZERO BY 2030 Pursue our efforts on energy efficiency and reach Install renewable energy production units at our assets to reach up to 70 as the average portfolio kWh/sq.m energy efficiency 3
Slide 42: Building the most sustainable platform for commerce
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 BUILDING THE MOST SUSTAINABLE PLATFORM FOR COMMERCE PROMOTING SERVICING GROWING SUSTAINABLE COMMUNITIES PEOPLE LIFESTYLES ALL our shopping centers will • Develop up a long-term “Giving Back” 50,000 people developed across Europe 50 million shoppers guided
Slide 43: Klépierre's global leadership in sustainability widely recognized worldwide
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 KLÉPIERRE’S GLOBAL LEADERSHIP IN SUSTAINABILITY HAS BEEN WIDELY RECOGNIZED WORLDWIDE CAC 40 ESG INDEX EUROPEAN LEADER “A” LIST AA RATING 1.5°C CAC SBT 1.5 INDEX • Peers' comparison : • Klépierre is one • Klépierre is integrated • Klépierre belongs to the •
Slide 44: Our ESG leading position allows full access to financing
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 OUR ESG LEADING POSITION ALLOWS US TO BENEFIT FROM A FULL ACCESS TO FINANCING More than 50% of our financing raised in 2023 include ESG criteria (€900m) KPI #1 KPI #2 Scope 1 & 2 Greenhouse Gas Waste recycled / reused Emission (in kgCO2e/sq.m.) (in % of to
Slide 45: Illustrated by concrete achievements
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 ILLUSTRATED BY CONCRETE ACHIEVEMENTS €260m green mortgage loan at Hoog Catharijne (Netherlands) Signature of a €150m innovative sustainability-linked revolving credit facility Over 90% of our revenues come from assets (by value) aligned with the CRREM targ
Slide 46: Distribution & Outlook
05 D I S T R I B U T I O N & O U T LO O K 47
Slide 47: We propose a 3% increase in cash distribution at €1.80 per share
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 WE PROPOSE A 3% INCREASE IN CASH DISTRIBUTION AT €1.80 PER SHARE The proposed distribution is composed of : Proposed distribution of Pay-out ratio of €1.80 €1.80 73% (1) up 3% compared to 2022 The proposed distribution would be a payment in two instalments
Slide 48: 2024 Outlook
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 2024 OUTLOOK The guidance is built under the assumption of low GDP growth in continental Europe in 2024, with a labor market remaining supportive and the inflation environment easing. In 2024, Klépierre expects to generate at least a 4% increase in EBITDA(
Slide 49: Agenda
AGENDA May 3, 2024 Annual General Meeting 2024 May 3, 2024 2024 first quarter trading update(1) (1) Before market opening
Slide 50: Appendices
APPENDICES 51
Slide 51: Net current cash flow
2023 FULL-YEAR EARNINGS — FEBRUARY 15, 2024 NET CURRENT CASH FLOW(1) 12/31/2022 12/31/2023 Total share (in €m) Gross rental income 1,095.3 1,164.8 Rental and building expenses (168.7) (159.9) Net rental income 926.6 1,005.0 Management, administrative, related income and other income 77.6 74.6 Payrol
Slide 52: Contact
C O N TACT investorrelations@klepierre.com +33 (0)7 50 66 05 63 53