14/02/2024 - Klépierre SA: Full-year 2023 - Supplemental Information to the earnings release

S U P P L E M E N T A L

I N F O R M A T I O N T O T H E

E A R N I N G S R E L E A S E

F U L L - Y E A R 2 0 2 3

The audit procedures on the full-year financial statements are in progress.

The Statutory auditors' audit report is in the process of being issued.

Net rental income

Net rental income (on a total share basis)

1. Excluding the positive non-recurring income statement impact related to the 2020 and 2021 account receivables (€88.6 million) and the net rental income generated by disposed assets (€29.9 million) and adding back the negative impact of Covid-19 rent concessions amortization (IFRS 16; -€9.8 million).
2. Excluding mainly the positive non-recurring income statement impact related to the 2020 and 2021 account receivables (€25.9 million) and other items (€2.7 million).

Net rental income amounted to €1,005 million in 2023, up 8.8% on a like-for-like(1) basis, outpacing the positive 5.8% indexation rate by 300 basis points. This record growth was fueled by the combination of a 110 basis-point increase in the collection rate to 97.5%, the delivery of a 21% like-for-like increase in additional revenues (turnover rents, car park revenues and specialty leasing) and disciplined management of property charges which translated into an improvement in the operating margin.

Chart 1 Breakdown of NRI by region for the year ended December 31, 2023 (on a total share basis)

Scandinavia

12%

Italy 23%

Operating performance

This solid sales performance, coupled with the Group's asset management and development initiatives designed to adapt its offering to a constantly evolving environment has been driving significant leasing tension

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1. Like-for-likedata exclude the contribution of new spaces (acquisitions, greenfield projects and extensions), spaces being restructured and disposals completed since January 2022.

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BUSINESS ACTIVITY BY REGION

France (36% of net rental income)

Net rental income in France

1. Excluding the positive non-recurring income statement impact related to the 2020 and 2021 account receivables and the net rental income generated by disposed assets.
2. Excluding the positive non-recurring income statement impact related to the 2020 and 2021 account receivables.

In a somewhat subdued environment along with a changing retailer landscape, the French portfolio stood out with retailer sales up 4% on average, outpacing core inflation by 60 basis points, and dominant regional malls posting solid figures, including Val d'Europe (Paris region, up 7%), Blagnac (Toulouse, up 7%) and Créteil Soleil (Paris region, up 5%). Similarly, Saint-Lazare (Paris region) continued to welcome ever more commuters and workers, with strong footfall increases and retailer sales up 6% over one year.

Retailers' demand for Klépierre's leading destinations remained strong as witnessed by several deals signed for larger units with Inditex, the expansion of Bestseller and the development of new leisure offers (Otium, La tête dans les Nuages, Fort Boyard) or new supermarkets (Lidl, Grand Frais). As part of its proactive mix curation strategy, the Group is gradually replacing legacy French fashion retailers by dynamic international brands (e.g., Normal, Rituals). With higher rent collection rates, additional revenues and improved occupancy, net rental income was up 4.5% on a like-for-like basis.

Lastly, the highlight of the year was the on-time and on-budget completion of the Grand Place extension in Grenoble in November. With a fully reshaped retail offering, the project is fully let. Further to the opening, footfall jumped 60% in December compared to December 2022. The portfolio transformation also included the disposals of convenience shopping galeries in Valenciennes and Metz as well as 30 other standalone retail assets throughout France.

Italy (23% of net rental income)

Net rental income in Italy

1. Excluding the positive non-recurring income statement impact related to the 2020 and 2021 account receivables and the net rental income generated by disposed assets.
2. Excluding the positive non-recurring income statement impact related to the 2020 and 2021 account receivables.

Klépierre's Italian platform confirmed its dynamism over the course of 2023. Despite a protracted weak economic growth at national level, retailer sales increased by 4% compared to 2022 driven, among others, by a strong affluence of customers, with footfall up 12%.

The local tenant base is very solid and leasing tension has been strong as confirmed by no major bankruptcies and a sharp increase in collection rates coupled with a historically high financial occupancy. In 2023, a large number of brands reinforced their presence in Klépierre's dominant assets with Primark opening its fourth store

Netherlands / Germany / Central Europe (16% of net rental income)

Net rental income in Netherlands / Germany / Central Europe

1. Excluding the positive non-recurring income statement impact related to the 2020 and 2021 account receivables and the net rental income generated by disposed assets.
2. Excluding the positive non-recurring income statement impact related to the 2020 and 2021 account receivables.

The Dutch portfolio enjoyed upbeat business levels in 2023, characterized by a strong increase in footfall. Highlights included Hoog Catharijne (Utrecht), the most visited mall in the Netherlands, reaching its all-time footfall record with an impressive 33 million visitors in 2023 (up 16%), bearing the fruits of Klépierre's leasing strategy. With the mall welcoming the flagship stores of international retailers, like-for-like growth in retailer sales for the Netherlands came out at 17% and strongly outperformed inflation. This growth allowed retailers to absorb high rental indexation and therefore maintain sustainable levels of occupancy cost ratio.

In Germany, the 7% increase in retailer sales also outstripped inflation. This facilitated the success of ongoing renewal campaigns, while strongly contributing to additional revenues, mainly driven by car park revenues and mall income.

In 2023, Klépierre also completed the first phase of the refurbishment of Alexandrium in Rotterdam which got a strong response from both visitors and tenants. It also disposed of a non-core asset in Germany, as the Group pressed ahead with streamlining the portfolio.

Meanwhile, retailer sales in Central Europe exceeded 2022 levels by 9%, benefiting from close-to-inflation wage increases in a tight labor market that supported consumption. On the leasing side, dealflow was dense at Nový Smíchov, the leading mall in Prague, which attracted several flagship banners including Nike and Lacoste. Klépierre continued to broaden its offering in the food & beverage segment by signing up Starbucks - the first point of sale in the Plzeň region.

Net rental income for the region as a whole was up 17.3% on a like-for-like basis, lifted by a high collection rate, an increase in occupancy and strong growth in additional revenues (turnover rents, car park revenues and mall income).

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NET CURRENT CASH FLOW

Net current cash flow

Net current cash flow(a)

1. The data used to calculate the net current cash flow are obtained by deducting from IFRS aggregates certain non-cash and/or non-recurring effects, mainly related to positive non-recurring income linked to the 2020 and 2021 account receivables, changes in the fair value of buildings (net of deferred taxes) of equity-accounted companies, and certain provisions and depreciations.
2. EBITDA stands for "earnings before interest, taxes, depreciation and amortization" and is a measure of the Group's operating performance.
3. Excluding treasury shares.

In 2023, net current cash flow per share increased by 10.7% year on year to €2.48(3). This recurring performance reflects the combined impact of the following indicators:

• Net rental income increased by 8.8% on a like-for-like(4) basis, mainly on the back of the 5.8% positive impact of indexation at Group level, a significant increase in rent collection rate (up 110 basis points) as well as higher additional income and further improvement of property charge management;
• EBITDA amounted to €921.4 million up 9.6% year on year, above growth in net rental income, notably thanks to tight control of payroll and general and administrative expenses;
• The cost of net debt increased to €131.9 million on a total share basis, mainly impacted by higher rates and spreads. Overall, the average cost of debt remained contained at 1.5% (see section 6.3 "Cost of debt");
• Current tax expenses amounted to €34.7 million on a total share basis, down €4.0 million year on year.

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1. Excluding the positive non-recurring income statement impact related to the 2020 and 2021 account receivables.
2. Like-for-likedata exclude the contribution of new spaces (acquisitions, greenfield projects and extensions), spaces being restructured and disposals completed since January 2022.

Contribution of equity-accounted companies

Contribution of equity-accounted companies

1. Excluding the positive non-recurring income statement impact related to the 2020 and 2021 account receivables and income generated by disposed assets.
2. Excluding the positive non-recurring income statement impact related to the 2020 and 2021 account receivables.
3. To determine the Group's share for Scandinavia, data must be multiplied by 56.1%.