Citycon Oyj · OMXHEX:CTY1S

Citycon Oyj — Merger or Acquisition (May 2015)

14 slides from Citycon Oyj's merger presentation, May 26, 2015

  1. Slide 1: Acquisition of Sektor

    Acquisition of Sektor Citycon to create European scale with a Nordic heartbeat Press Conference 26 May 2015

  2. Slide 2: Citycon makes a strategic acquisition and becomes a truly pan-Nordic player

    CITYCON MAKES A STRATEGIC ACQUISITION AND BECOMES A TRULY PAN-NORDIC PLAYER AND THE LARGEST LISTED PROPERTY COMPANY IN THE NORDICS 2

  3. Slide 3: We want to be the leading owner, manager and developer of urban grocery-anchored shopping centres

    WE WANT TO BE THE LEADING OWNER, MANAGER AND DEVELOPER OF URBAN GROCERY-ANCHORED SHOPPING CENTRES IN THE NORDICS AND BALTICS 3

  4. Slide 4: Citycon today, before the acquisition of Sektor

    Citycon today, before the acquisition of Sektor Key figures1)  # of shopping centres 35  Annual footfall, million 150 Finland  Gross leasable area, sq.m. 1,030,000  Total assets, EUR billion 3.4 Sweden  Market cap on Nasdaq Helsinki, EUR billion 1.8  Credit ratings, S&P BBB & Moody’s Baa2 Tota

  5. Slide 5: Sektor – a leader in Norwegian retail real estate

    Sektor – a leader in Norwegian retail real estate Norway’s 2nd largest shopping centre company 100% shopping centres Focused on the three main urban economic centres: Oslo, Bergen and Stavanger regions Gross asset value: Proven management track record 1.5 bn EUR Footfall: 62 million p.a.1) Portfolio

  6. Slide 6: Key terms of the transaction

    Key terms of the transaction  NOK 12,320 million debt-free purchase price (EUR 1,467 million)  Net initial property yield of 5.2% Key acquisition terms  Potential to increase by +20bps by year-end 2015 due to developments coming online  Expected to be accretive to earnings per share as of first

  7. Slide 7: Following the transaction, Citycon has leading positions in all core markets

    Following the transaction, Citycon has leading positions in all core markets Pro forma Number of shopping Gross asset value centres1) Baltics & Denmark 7% Finland 35% Norway 20 21 Finland 31% Norway 10 3 Sweden Estonia 1 Sweden1) Denmark 27% Only Pan-Nordic listed retail pure-play Larger footprint a

  8. Slide 8: Norway is the wealthiest and fastest growing country in Europe

    Norway is the wealthiest and fastest growing country in Europe Population growth (2015-2030E) Nominal GDP per Capita vs. EU average (2014) Norway 13.4% Norway 271% Sweden 10.3% Denmark 167% UK 9.4% Sweden 164% France 6.6% Finland 137% Denmark 6.1% Germany 129% Belgium 4.3% UK 126% Austria 4.2% Franc

  9. Slide 9: An attractive acquisition moving Citycon to another league

    An attractive acquisition moving Citycon to another league Increased scale  Creation of a EUR 5 bn shopping centre company with a platform of 55 shopping centres Size  Immediate critical mass in Norway  Increased liquidity and added capital market visibility Consolidation as Nordic leader Largest

  10. Slide 10: Citycon and Sektor a perfect fit – ticks all the boxes

    Citycon and Sektor a perfect fit ‒ ticks all the boxes PAN-NORDIC  100% focused on Norway for Citycon to become a true Pan-Nordic player  Focused on capital city regions and cities with URBAN ENVIRONMENTS population growth  Linked to public transportation  Grocery-anchored shopping centres DAILY

  11. Slide 11: Citycon – a true Pan-Nordic leader

    Citycon – a true Pan-Nordic leader Retail GLA (thousand sq.m.)1) 340 Finland 140 125 120 105 280 Sweden 230 225 225 200 #3 #1 1 275 Norway #2 400 #1 305 200 95 110 95 Estonia 65 60 20 11 1) Source: Company reports, SEB analysis. Includes only majority-owned shopping centres. Includes some assumption

  12. Slide 12: Increased scale and visibility – Largest listed property company in the Nordics

    Increased scale and visibility – Largest listed property company in the Nordics Gross asset value (EUR bn)1) 6 5 4.9 4.2 4.1 4.1 4 1.5 3.6 3.4 3.3 3.3 3.2 3.1 3.1 3 3.4 2 1 0 Citycon + Castellum Olav Thon Balder Fabege Citycon Klövern Entra Wallenstam Sponda Atrium Sektor Ljungberg 2) Combined # of

  13. Slide 13: Summary

    Summary • Logical combination of two retail specialists • Entrance to the strong and growing Norwegian market • Creation of the #1 listed property company in the Nordics • Value-add potential through synergies European scale with a Nordic heartbeat 13

  14. Slide 14: citycon.com

    Cl CITYCON citycon.com

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