Slide 1: 2022 Full-Year Earnings
2 0 2 2 F U L L -Y E A R EARNINGS FE BR UAR Y 15, 2023
Slide 2: Disclaimer
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 DISCLAIMER This document was prepared by Klépierre S.A. (the “Company”) solely looking statements are subject to numerous risks and uncertainties, for the purpose of presenting Klépierre’s 2022 full-year earnings which could cause actual results to differ
Slide 3: Table of Contents
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 TABLE OF CONTENTS 01 02 03 OUR CSR LEADERSHIP GROWING CASH FLOWS & TRADING UPDATE STRONG BALANCE SHEET 04 05 06 2022 FULL-YEAR ENHANCING OUR PROPERTIES DISTRIBUTION & EARNINGS AND RISK PROFILE GUIDANCE 3
Slide 4: Our CSR Leadership
01 OUR CSR LEADERSHIP KLEPIERRE SHOP. MEET. CONNECT.*
Slide 5: Klépierre's global leadership in sustainability widely recognized again in 2022
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 KLÉPIERRE’S GLOBAL LEADERSHIP IN SUSTAINABILITY HAS BEEN WIDELY RECOGNIZED ONCE AGAIN IN 2022 1st WORLDWIDE “A” LIST CAC SBT 1.5 INDEX AAA RATING WELL BELOW 1.5°C 1st Global Retail Listed Klépierre is one of Integration of a new, Highest rating achieved In
Slide 6: Outstanding results of the first phase of Act for Good CSR strategy
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 THIS IS LARGELY THANKS TO THE OUTSTANDING RESULTS OF THE FIRST PHASE OF ITS ACT FOR GOOD® CSR STRATEGY 42% 82% reduction in reduction in 99.8% the energy intensity greenhouse gases emissions (GHG) of our portfolio scopes 1 and 2 average achievement rate In
Slide 7: The Group has announced its renewed CSR ambition for 2030
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 THE GROUP HAS ANNOUNCED ITS RENEWED CSR AMBITION FOR 2030 7
Slide 8: Achieving Net Zero by 2030
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 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 9: Building the most sustainable platform for commerce
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 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 10: Growing Cash Flows & Strong Balance Sheet
02 GROWING CASH FLOWS & STRONG BALANCE SHEET 10
Slide 11: We outperformed our 2022 guidance
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 WE OUTPERFORMED OUR 2022 GUIDANCE €2.30 - €2.35 €2.45 €2.62 (up 20.1% vs. 2021) 2022 NCCF per share 2022 NCCF per share guidance presented in updated guidance 2022 NCCF per share February 2022 presented in July 2022 +13% vs. mid-range initial guidance 11
Slide 12: A performance driven by strong fundamentals
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 A PERFORMANCE DRIVEN BY STRONG FUNDAMENTALS 1 We own a high quality portfolio 2 OUR VISION: SHOP. MEET. CONNECT. 3 Capital allocation • Prime shopping centers at the heart of Europe’s largest cities: 1 million inhabitants catchment area and 20% higher reve
Slide 13: Retailer sales continued to significantly progress
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 RETAILER SALES CONTINUED TO SIGNIFICANTLY PROGRESS 2022 retailer sales by region compared to 2021 45% 40% 29% 25% 26% 18% 17% Netherlands & Group France Italy Scan dinavia Iberia CE Netherland and German y Group France Italy Scandinavia Iberia Central Euro
Slide 14: We seized the growth momentum of expanding retailers
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 WE SEIZED THE GROWTH MOMENTUM OF EXPANDING RETAILERS 4 new stores 4 new stores 11 new stores 3 new stores 6 new stores 18 new stores 7 new stores 3 new stores 11 new stores 6 new stores 1 new store 2 new stores 3 new stores 2 new stores 3 new stores 14
Slide 15: All our operational fundamentals were on the rise
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 ALL OUR OPERATIONAL FUNDAMENTALS WERE ON THE RISE 1,360 leases signed 4.1% positive reversion, on top of a 3.7% indexation 26% of our stores relet to new tenants since 2020 High occupancy rate at 95.8%, up 110 basis points over one year 5.0 years of averag
Slide 16: Net rental income performance
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 NET RENTAL INCOME PERFORMANCE €1,035.3m Year-on-year comparison is affected €921.7m by 2021 store closures related to the pandemic. -€88.6m -€25.0m One-off items Excluding one-off contributions, 2022 net rental income amounted to €921.7 million and reflect
Slide 17: Sustained pace of disposals enhanced the portfolio
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 THE SUSTAINED PACE OF DISPOSALS ENABLED US TO FURTHER ENHANCE THE PORTFOLIO Keep adapting the portfolio to refocus on destinations sought after by retailers €1,475m of disposals(1) since January 1, 2021 of which Being active in many countries and on €602m
Slide 18: Highly concentrated on dominant malls
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 WHICH IS HIGHLY CONCENTRATED ON DOMINANT MALLS The largest 20 malls The largest 70 malls represent represent 54 % of the overall 92% of the overall shopping center shopping center value value 18
Slide 19: Opening of Gran Reno extension
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 THE MAIN DEVELOPMENT HIGHLIGHT OF 2022 WAS THE OPENING OF GRAN RENO EXTENSION Total investment of €142m for the 16,700 sq.m. of extension and renovation, fully let, with a 8% yield on cost. Footfall above our expectations +47% vs. 2019 Annual footfall to s
Slide 20: Grand Place extension due for completion by end of 2023
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 GRAND PLACE EXTENSION DUE FOR COMPLETION BY THE END OF 2023 Committed project Grenoble, France Widening our retail service and leisure offer. 16,200 sq.m extension Pre-letting: 89% Total investment: €65 million Yield on cost: c.8% 20
Slide 21: Maremagnum chosen by Time Out Market
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 MAREMAGNUM CHOSEN BY TIME OUT MARKET TO OPEN ITS SECOND LOCATION IN EUROPE Committed project Barcelona, Spain Maremagnum’s rooftop to host the first Time Out Market in Spain and create the new Barcelona’s leisure hotspot for food & beverage. 5,200 sq.m Ope
Slide 22: Strong credit metrics
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 STRONG CREDIT METRICS Loan-to-Value ratio: 37.7% Net Debt to Ebitda: 7.9x, Net debt down better than pre-Covid level (8.0x) €1.6 billion since January 1, 2021 Interest Coverage Ratio: 10.0x, well above pre-Covid level Average Debt Maturity: 6.5 years Full
Slide 23: Growing dividend and guidance
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 GROWING DIVIDEND AND GUIDANCE Proposed distribution 2023 guidance €1.75 Cash distribution in respect of 2022 €2.35 NCCF per share (+3% compared to 2021) (+5% vs. the €2.24 adjusted(1) figure for 2022) Paid in two installments: - €0.87 per share on March 30
Slide 24: Our ambition for 2023
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 OUR AMBITION FOR 2023 DELIVER GROWING CASH RETURNS TO OUR SHAREHOLDERS WHILE REMAINING AT THE FOREFRONT OF THE ESG BEST PRACTICES IN REAL ESTATE
Slide 25: Trading Update
03 TRADING UPDATE KLEPIERRE SHOP. MEET. CONNECT.*
Slide 26: Retailer sales back to pre-Covid levels in 2022
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 IN 2022, RETAILER SALES WERE BACK TO PRE-COVID LEVELS Like-for-like change in retailer sales compared to 2019, total share • On a like-for like basis retailer sales strongly rebounded in 2022. • The figures improved from April to December, pointing at 100%
Slide 27: Retailer sales: strong momentum across regions
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 RETAILER SALES: A STRONG MOMENTUM ACROSS REGIONS… 2022 retailer sales by region compared to 2019, total share 98% 98% 96% 96% 100% 105% 99% YoY change 108% 100% 101% 102% 103% 98% 97% Annual Group 93% average 98% 89% 89% 91% 92% 86% 85% Group France Italy
Slide 28: ...and across business segments
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 …AND ACROSS BUSINESS SEGMENTS • Over the last three quarters, 94% of the business segments were back or above 2019 levels. • Fashion proved its resumption rising from 83% of 2019 levels in the first quarter to 100% over the 3 last quarters. • Culture, gift
Slide 29: Strong retailer demand supported positive operational trends
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 THE STRONG DEMAND FROM RETAILERS SUPPORTED POSITIVE OPERATIONAL TRENDS Occupancy rate significantly improved 26% of Group’s stores relet to new tenants since January 2020 +110bps 95.8% +4.1% reversion 94.7% 5.0 years of weighted average left lease duration
Slide 30: Operating highlights
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 OPERATING HIGHLIGHTS LEASING ACTIVITY OCR (%) Occupancy rate (%) FRANCE 13.0% 94.5% ITALY 12.5% 98.3% SCANDINAVIA 13.0% 95.1% IBERIA 13.8% 95.5% NETHERLANDS & GERMANY 12.4% 95.6% CENTRAL EUROPE 15.4% 96.6% OTHER COUNTRIES 8.6% 96.4% GROUP TOTAL 12.9% 95.8%
Slide 31: Proactive actions to limit impact of energy price increase
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 WE TOOK PROACTIVE ACTIONS TO LIMIT THE IMPACT OF ENERGY PRICE INCREASE FOR RETAILERS Breakdown of service charges Service charges were up 15% compared to 2021 on a like-for- like basis. 2021 10% 90% Proactive actions have been engaged in 2022, to limit inf
Slide 32: Full-Year Earnings
04 2 0 2 2 F U L L -Y E A R E A R N I N G S 32
Slide 33: All earnings indicators strongly rebounded
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 ALL EARNINGS INDICATORS STRONGLY REBOUNDED Reported Like-for-Like Total share (in millions of euros) 2021 2022 change change Net Rental Income 879.5 1035.3 +17.7% +24.8% EBITDA 806.8 955.0 +18.4% NET CURRENT CASH-FLOW 718.9 851.0 +18.4% Group share NET CUR
Slide 34: 2022 net current cash flow, up 20.1%
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 2022 NET CURRENT CASH FLOW, UP 20.1% +€0.30 -€0.11 €2.62 +€0.36 -€0.03 -€0.08 €2.18 Like-for-like NRI Other NRI Other income, Cost of debt and 2021 Reversal of 2022 excl. reversal of impacts (forex, G&A and payroll current NCCF provisions(1) provisions(1)
Slide 35: Collecting 2020 and 2021 rents in 2022
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 WHILE WE CONTINUED TO COLLECT 2020 AND 2021 RENTS IN 2022 Collection rate on 2020 and 2021 rent and service charges (total share) as booked in 2022 accounts Collection rate as of December 31, 2022: 88.3% 2020 rents 86.7% 1.6% Collection rate as of December
Slide 36: Yield movement drove portfolio value at €19.6bn
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 YIELD MOVEMENT DROVE SHOPPING CENTER PORTFOLIO VALUE AT €19.6BN(1) Main appraisers’ assumptions as of December 31, 2022 Tightening credit environment and higher risk-free rate, €19,595m translated into: slightly down • Discount rates of 7.2% (up 40 basis p
Slide 37: Net debt decreased by €1.6 billion over 2 years
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 NET DEBT DECREASED BY €1.6 BILLION OVER THE PAST 2 YEARS And was down €527 million in 2022 €9,054m Sources Uses €1,570m €44m €7,479m €347m €1,394m €998m Net debt Net Current Net debt Disposals Distribution(1) Capex Other(2) December 2020 Cash Flow December
Slide 38: Credit metrics back to pre-Covid levels
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 ENABLING TO BRING BACK CREDIT METRICS TO PRE-COVID LEVELS Change in LTV and Net debt/EBITDA LTV stood at 37.7% at the end of the 46.00% 10.8x 12 year, down 180 bps over the last 6 44 .00% months. 8.0x 8.8x 8.6x 10 7.9x 42.00% 40.00% 41.4% 8 39.5% -180 bps
Slide 39: Large covenant headroom and strong BBB+ rating
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 WE HAVE LARGE COVENANT HEADROOM AND RELY ON A STRONG BBB+ CREDIT RATING Covenants applicable to Klépierre SA financing Bank and bonds covenants(1) December 2022 Klépierre’s ratios are commensurate with its current rating and are comfortably anchored Loan-t
Slide 40: Sound liquidity position covers 36% of gross debt
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 OUR SOUND LIQUIDITY POSITION COVERS 36% OF OUR GROSS DEBT €0.3bn Cash and equivalents At the end of 2022, liquidity position stood at €2.8 billion: €0.4bn Other Credit – €2.1 billion in unused committed revolving credit facilities (net of facilities €2.8bn
Slide 41: Well spread debt maturities with 6.5 years average
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 WELL SPREAD DEBT MATURITIES WITH A 6.5 YEARS AVERAGE MATURITY Debt maturity schedule (excluding Commercial papers) Financing breakdown by type of resource as of December 31, 2022 (utilizations, total share) 1,225 8% Bank loans 726 751 724 661 624 635 625 1
Slide 42: Long term spreads have significantly decreased
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 LONG TERM SPREADS HAVE SIGNIFICANTLY DECREASED RECENTLY Klépierre long-term spread (10Y) evolution 330 280 230 180 130 80 30 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 (1) Source: Bloomberg. 42
Slide 43: Low cost of debt and strong hedging profile
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 OUR COST OF DEBT IS LOW AND WE HAVE A STRONG HEDGING PROFILE AGAINST RATE FLUCTUATIONS Cost of debt evolution x14 2.4% Despite the sharp increase in interest rates, the average x12 2.2% cost of debt remained stable at 1.2% thanks to a prudent 10.0x and act
Slide 44: EPRA net asset value metrics
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 EPRA NET ASSET VALUE METRICS December June December EPRA asset valuations 2021 2022 2022 EPRA NRV €35.1 €34.5 €34.7 EPRA NTA 12-month reconciliation per share In euros per share EPRA NTA €31.2 €30.6 €30.9 EPRA NTA at 12/31/2021 31.20 EPRA NDV €27.1 €29.2 €
Slide 45: Enhancing Our Properties and Risk Profile
05 ENHANCING OUR PROPERTIES AND RISK PROFILE 45
Slide 46: We continued to streamline our portfolio
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 WE CONTINUED TO STREAMLINE OUR PORTFOLIO €1,475m(1) of total disposals since January 1, 2021 of which €602m in 2022 in line with appraised values(2) Norway Netherlands France (1) Disposal include assets under promissory agreement. On a total share basis, e
Slide 47: €1.9bn pipeline focused on calibrated investments
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 €1.9BN PIPELINE FOCUSED ON CALIBRATED INVESTMENTS ENSURING SIGNIFICANT VALUE CREATION Limited level of committed projects (€70m to Breakdown of the development pipeline spend by dates of delivery) with an average (in % of cash to spend) expected yield on c
Slide 48: Retail controlled projects: Grand Ouest
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 RETAIL CONTROLLED PROJECTS: A REJUVENATED CUSTOMER EXPERIENCE AT GRAND OUEST Lyon region, France Extension with exterior terraces, green areas and kids’ play premises. 5,110 sq.m. of extension Potential delivery in 2025 Potential investment: €24 million 48
Slide 49: Retail controlled project: Odysseum
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 RETAIL CONTROLLED PROJECT: THE OFFERING TO BE REINFORCED IN ODYSSEUM Montpellier, France New areas to densify the retail offer and welcome Primark. 15,300 sq.m. of retail restructuring, including 6,100 sq.m. of extension Potential delivery between 2024 and
Slide 50: Value creation in mixed-use projects
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 WE SEE ANOTHER SOURCE OF VALUE CREATION IN MIXED-USE PROJECTS Mixed-use opportunities by category (% of total sq.m.) Agile and opportunistic approach on land bank to 8% create synergies with urban projects. Others 10% Hotels Residential, hotels, offices… 2
Slide 51: Mixed-use controlled projects: Økern
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 MIXED-USE CONTROLLED PROJECTS: ØKERN, FROM AN INDUSTRIAL AREA TO A VIBRANT CITY CENTER Oslo, Norway In line with Oslo municipality’s development strategy to become greener, more inclusive and more creative, Økern will be transformed from an industrial area
Slide 52: Mixed-use controlled projects: Blagnac
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 MIXED-USE CONTROLLED PROJECTS: BLAGNAC, A NEW LIVING HEART ADJACENT TO THE MALL Toulouse region, France A mixed-use project with residential, offices, shops and services to transform this area directly connected to Toulouse’s dominant mall. 112,000 sq.m. (
Slide 53: Distribution & Guidance
06 DISTRIBUTION & GUIDANCE 53
Slide 54: Proposed 3% increase in cash distribution at €1.75 per share
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 WE PROPOSE A 3% INCREASE IN CASH DISTRIBUTION AT €1.75 PER SHARE Proposed distribution of €1.75 Based on the distribution capacity, the proposed distribution is composed of: up 3% compared to 2021 €1.75 Pay-out ratio of 75.4% (1) The proposed distribution
Slide 55: Expected 5% increase in NCCF per share in 2023
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 WE EXPECT TO GENERATE A 5% INCREASE IN NCCF PER SHARE IN 2023 Group share €2.62 -€0.30 -€0.08 +5% €2.35 €2.24 10% NCCF Reversal of Contribution of Adjusted NCCF NCCF 2022 provisions(1) disposed assets 2022 2023 (1) Related to 2020 & 2021 rents and charges
Slide 56: 2023 guidance: another year of growth
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 2023 GUIDANCE: ANOTHER YEAR OF GROWTH Over the course of 2022, Klépierre’s operations grew thanks to robust fundamentals: rebound in retailer sales and footfall, high rent collection, strong cash flow generation and improved credit metrics. In 2023, the Gr
Slide 57: Questions & Answers
QUESTIONS & ANSWERS KLEPIERRE SHOP. MEET. CONNECT.*
Slide 58: Agenda
AGENDA May 11, 2023 Annual General Meeting May 11, 2023 2023 first quarter trading update(1) (1) Before market opening
Slide 59: Profit & Loss
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 PROFIT & LOSS TOTAL SHARE In €m 12/31/2022 12/31/2021 Gross rental income 1,162.4 1,006.4 Rental & building expenses (127.1) (126.9) NET RENTAL INCOME 1,035.3 879.5 Management. administrative and related income 69.3 65.1 Other operating income 14.5 9.4 Sur
Slide 60: Net Current Cash Flow
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 NET CURRENT CASH FLOW 12/31/2022 12/31/2021 Change Total share, in €m Gross rental income 1,162.4 1,006.4 +15.5% Rental and building expenses (127.1) (126.9) +0.2% Net rental income 1,035.3 879.5 +17.7% Management and other income 83.8 74.5 +12.4% General
Slide 61: Portfolio Valuation (total share)
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 PORTFOLIO VALUATION (€m, total share, incl. transfer taxes) 12-month change 12-month change 12/31/2022 % of total portfolio 12/31/2021 Reported Like-for-like(1) France 8,031 40.5% 8,240 -2.5% -2.2% Italy 4,078 20.6% 4,003 +1.9% +1.2% Scandinavia 2,643 13.3
Slide 62: Portfolio Valuation (Group share)
2022 FULL-YEAR EARNINGS — FEBRUARY 15, 2023 PORTFOLIO VALUATION (€m, Group share, incl. transfer taxes) 12-month change 12-month change 12/31/2022 % of total portfolio 12/31/2021 Reported Like-for-like(1) France 6,468 37.9% 6,640 -2.6% -2.2% Italy 4,057 23.8% 3,979 +2.0% +1.3% Scandinavia 1,483 8.7%
Slide 63: Contact
L Contact investorrelations@klepierre.com +33 (0)1 40 67 51 37