intu properties plc•revaluation surplus £573 million (1), 7.6% like-for-like (ipd(2) capital...

Intu Properties plc Investor presentation – Winter 2014

(1) Including Group share of joint ventures

9 of UK’s top 20 shopping centres

Over

21m sq ft

of retail, catering and leisure space

Our centres attract

400m customer visits a year

2/3 of the UK’s population live within a 45 minute drive time of one of our centres

96% occupancy

£1.2bn development pipeline

30m unique customers

Intu at a glance

Intu - leading owner, developer and manager of prime UK shopping centres

Source: PMA (1) Top shopping centres on basis of PMA Retail Score (June 2014). Intu shopping centres highlighted orange (2) Acquired on 1 May 2014 (3) Adjoined by intu Milton Keynes

Centre Location Centre Location 1 Westfield London London - Shepherds Bush 23 intu Bromley Bromley 2 Bluewater Greenhithe 24 intu Eldon Square Newcastle 3 Westfield Stratford City London - Stratford 25 Victoria Square Belfast 4 Meadowhall Sheffield 26 intu Braehead Glasgow 5 intu Trafford Centre Manchester 27 Victoria Quarter Leeds 6 St David's Cardiff 28 Golden Square Warrington 7 intu Metrocentre Gateshead 29 Silverburn Glasgow 8 intu Lakeside Thurrock 30 White Rose Shopping Centre Leeds 9 Bullring Birmingham 31= The Oracle Reading 10 Arndale Centre Manchester 31= Trinity Leeds Leeds 11 The Mall at Cribbs Causeway Bristol 31= Thistle Centre Stirling 12= Brent Cross London 34 Buchanan Galleries Glasgow 12= Cabot Place, One Canada Square London 35 East Kilbride Shopping Centre Glasgow 14 Liverpool One Liverpool 15 Cabot Circus Bristol 16 intu Merry Hill(2) Brierley Hill 17 Highcross Leicester Leicester 43 intu Victoria Centre Nottingham 18 intu Derby(2) Derby 45 intu Chapelfield Norwich 19 intu Watford Watford 46 intu Potteries Stoke-on-Trent 20 thecentre: mk(3) Milton Keynes 59 intu Milton Keynes Milton Keynes 21 West Quay Southampton 69 intu Uxbridge Uxbridge 22 Festival Place Basingstoke 182 intu Broadmarsh Nottingham

Delivering change, delivering great experiences

• Strong revaluation surplus for super-prime shopping centres

• Successful integration of intu Merry Hill, intu Derby and Sprucefield acquisition

• Improved financial flexibility

• Letting progress as retailer demand strengthens for quality space

• Gaining momentum with £1.2 billion development pipeline

• Distinguishing Intu from competitors through brand and digital presence

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A long term business – 20 years of measured expansion

• Revaluation surplus £573 million(1), 7.6% like-for-like

(IPD(2) capital growth + 3.5%)

• Increasing NAV per share to 372p

• Total financial return (from pro forma NAV of 335p) 14

per cent in six months

• Investment properties £8.8 billion(1)

– May 2010 demerger £4.6 billion

Notable valuation movements:

Strong revaluation surplus for super-prime shopping centres

Market value(1) Surplus (deficit)(1)

£m £m % intu Trafford Centre 2,200 300 16 intu Lakeside 1,248 118 11 intu Metrocentre 922 33 4 Manchester Arndale 425 26 6 intu Milton Keynes 267 16 6 intu Eldon Square 265 11 5 intu Braehead 602 - - intu Potteries 162 (2) (1) intu Victoria Centre 299 (13) (4) Others 2,452 84

8,843 573

1) Including Group share of joint ventures 2) IPD monthly index, retail

• Increasing intu ownership to 9 of top 20 UK centres

• Initial indications positive and confirming investment case

• Impact of rebranding and World Class Service training

• Opportunities

– rental levels

– tenant repositioning/upsizing

– active management/development potential

Successful integration of intu Merry Hill, intu Derby and Sprucefield acquisition

Net debt to assets 44%

Improved financial flexibility

30 June 2014(1) 31 December 2013(1)

Total properties £8,843m £7,624m Net external debt £(3,924)m £(3,698)m Net debt to assets 44.4% 48.5% Cash £200m £235m Undrawn committed corporate facilities £310m £90m Net assets attributable to shareholders £4,546m £3,519m Adjusted net assets per share 372p 346p 335p NAV pro forma basis Weighted average cost of gross debt 4.7% 4.8% Weighted average maturity of gross debt 7.7 years 8.0 years

(1) Group including share of joint ventures

2014 debt funding activities

• £110m intu Trafford bond issue at 4.6% cost

• £40m raised on Parque Principado (Intu share of €95m)

• £146m loan repaid on intu Uxbridge

• Three new debt facilities totalling £424m to provide part-funding for the acquisition

– Weighted average all-in cost of debt 2.5 per cent for first year

– Margins step up after 12 months and thereafter at 6 month intervals

– LTV of transaction was 48.9% – broadly in line with Group LTV

– intu Merry Hill - £191m, initial LTV of 46.9%; maturity in 2016 with a one year extension option;

secured against equity stake

– intu Derby - £203m, initial LTV of 51.9%; maturity in 2016

– Sprucefield - £30m, initial LTV of 43.9%; maturity in 2016

Underlying earnings Including Group share of joint ventures

First half First half 2014 2013

£m £m Net rental income 189.2 181.0 Administration expenses (14.9) (13.9) Net finance cost (underlying) (100.3) (101.2) Dividend from US investment 3.0 3.3 Other (5.0) (1.1) Underlying earnings 72.0 68.1 Interest cover 1.76 1.63 EPRA cost ratio(1) 16.4% 16.3% Earnings per share (pence)(2) 6.4 6.8 Weighted average shares in issue (million) (2) 1,130 1,004 Dividend per share (pence) (2) 4.6 4.6

(1) The EPRA cost ratio presented excludes direct vacancy costs and is calculated in accordance with EPRA guidelines

(2) Adjusted for rights issue bonus factor

Lettings progress as retailer demand strengthens for quality of space

• 98 new long-term leases £15m +4% passing rent

•Occupancy 96% Vacancy UK “big shopping centres” * 11%

•Footfall +1% (Experian benchmark flat)

•Retailer sales (est.) +1½%

* PMA estimate – top 70 locations plus regional shopping centres.

• Projects on site in first half

• Soon to commence

– Barton Square, intu Trafford Centre

– intu Watford, Charter Place extension

• Other major extensions

– Design and pre-letting

• Foregoing some income ahead of redevelopment

Gaining momentum with £1.2 billion development pipeline

intu Metrocentre Platinum Mall enhancing tenant mix, Qube 2 45,000 sq ft extra catering

• Platinum Mall: - Mix: Aspirational lifestyle brands e.g. Kuoni,

Tessuti, Phase 8, Circle 360 champagne bar - Works completed June 2014 including new

ceilings, feature lighting, column treatments and quality finishes - Upper level rental tone increased

• “Qube 2” food court extension:

- Adjacent to successful cinema - 11 new catering outlets, 80% by rent agreed - Total expenditure £17m (Intu share £11m) - Construction starting this summer, to complete

2015

intu Eldon Square

• Mall refreshment has much improved overall appearance and ambience prompting good retailer interest

• Pre-letting underway of 23 new restaurants, to be known as Grey’s Quarter

• Total expenditure £17m (Intu share £12m)

• Works will commence in September 2014 for Autumn 2015 opening

Major refurbishment in progress, restaurant quarter now 2/3 pre-let by rent

intu Lakeside Creating more reasons to visit and stay longer

• Food court construction completed

- openings during summer - expenditure £9m,

incremental rent over £1m - new names include Five

Guys, Nandos, Thai Express and Patisserie Valerie

• Over 600,000 sq ft leisure and retail extensions consented

• 225,000 sq ft leisure extension - expenditure £80m, anticipated phased start from 2015 subject to pre-letting

intu Potteries Leisure extension fully pre-let, construction underway

intu Victoria Centre, Nottingham Implementing our plans

• Major refurbishment of intu Victoria Centre and cluster of 12 new restaurants

• Urban Outfitters and Superdry opened, interest from other retailers not currently represented in Nottingham

• Strong demand for restaurant units at pre-letting stage

intu Bromley Queens Gardens restaurants and boutique cinema

• 14,000 sq ft cluster of five restaurants

• Expected construction from Winter 2014/2015

• Planning application approved for five screen boutique cinema and further restaurants

Nationwide opportunities

Development pipeline

1) Represents net additional floor space of retail, catering and leisure 2) Indicative earliest start date - timing subject to change due to a number of internal and external factors 3) Total project cost £9m of which £6m has already been spent 4) Total project cost £42m of which £8m has already been spent 5) Total project cost £20m of which £2m has already been spent 6) Approved subject to conditions including partner commitment and pre-letting 7) Smaller committed and pipeline projects do not necessarily involve the creation of additional floor space 8) Total project £114m of which £14m approved, included in “Other approved” 9) Size excludes arena and hotel 10) Intu share 33% of total project cost £90m

Intu Size1 Indicative investment

‘000 sq ft timing2 £m Approved intu Lakeside food court refurbishment3 – 2013-14 3 intu Victoria Centre refurbishment and restaurants4 – 2014-15 34 intu Potteries leisure extension5 58 2014-15 18 intu Eldon Square 'Grey's Quarter’ redevelopment and restaurants6 – 2014-15 12 intu Metrocentre 'Qube II' restaurants6 – 2014-15 11 intu Trafford Centre - Barton Square courtyard enclosure and second floor retail 112 2015-16 45 intu Bromley Queen's Gardens restaurants 14 2015-16 4 Other approved7 41 2014-15 37 225 164 Other active management7 97 2015-18 130 Major projects intu Watford - Charter Place redevelopment8 380 2015-17 100 intu Broadmarsh redevelopment 51 2016-18 78 intu Lakeside leisure extension 225 2015-18 80 intu Lakeside Northern extension 438 2016-18 180 intu Braehead extension9 475 2016-18 200 Cribbs Causeway extension10 200 2018-20 30 intu Victoria Centre extension 505 2018-20 240 2,274 908

2,596 1,202

Distinguishing Intu from competitors through brand and digital presence

• Tell intu customer feedback programme brand driving dwell and frequency

• Wi-Fi

11 intu centres already installed ownership model – infrastructure and data over 1 million registrants to date 60% of intu Wi-Fi registrants “opted in”

• Intu.co.uk website upgrade

fully mobile enabled

• National mobile wayfinding app under development location-based messaging

• High quality nationwide commercial partnerships

• Progress profitable expansion through our £1.2 billion organic development pipeline

• Optimise performance of existing assets

• Continue to improve financial flexibility

• Further distinguishing intu for retailers and customers through brand and digital activities

Concluding remarks

Appendices

Super-regional centres

Top in-town centres

In-town centres

Parque Principado, Oviedo The prime regional destination for Asturias, Northern Spain

• Acquired October 2013 with CPPIB

• Occupancy increased to 98% from 97%

• Footfall 9 million

• 67% of catchment in CACI top 2 (Spain average 44%) • Potential developments at Malaga, Valencia and Vigo

Corporate responsibility highlights (1)

18% CO2 reduction 96% of waste diverted from landfill 22 Community projects

• Reduced our 2013 carbon emissions by 18% (like-for-like portfolio) compared with our 2011 emissions – saving enough CO2 in 2013 to cover the emissions of a medium car driving over 28 million miles

• Diverted 96% of waste from landfill in 2013, of which 71% was recycled – that’s over 23,000 tonnes of waste, or the equivalent of over 3,800 male African elephants, diverted from landfill

• One of only 44 UK companies to currently hold BitC CommunityMark

• 22 community partnerships currently running. Group-wide Employee Volunteering Scheme launched

• Included in FTSE4Good, Dow Jones Sustainability Index and JSE SRI

• Increased our CDP climate change survey score by 25% over past 4 years

(1) Statistics calculated in December 2013

David Fischel Chief Executive

Matthew Roberts Chief Financial Officer

Mike Butterworth Chief Operating Officer

David Fischel was appointed Finance Director in 1988, Managing Director in 1992 and Chief Executive in March 2001. During his 27 year career with Intu, David has gained significant executive experience in numerous aspects of the shopping centre industry including shopping centre acquisitions and developments. He has also been closely involved with the group’s corporate development including equity and debt financings and a wide range of other corporate transactions, including the 2010 demerger of Capital & Counties from CSC.

Matthew Roberts (FCA) joined Intu as Finance Director in May 2010 and was part of the team which acquired The Trafford Centre, Manchester, in the UK's largest ever single property transaction. In Spring 2013 he led the establishment of Intu’s Secured Group Structure with initial issue of £1.15 billion of bond and bank debt. Previously the Finance Director of Debenhams plc from 1996 to 2003, and Chief Financial Officer of Gala (subsequently Gala Coral Group) from 2004 to 2008.

Mike Butterworth was appointed Chief Operating Officer on 3 October 2011. He joined the Group as Chairman, CSC Trafford in January 2011. Mike was formerly the Property Director of Peel Holdings and the Managing Director of The Trafford Centre Limited and is a fellow of the Royal Institution of Chartered Surveyors.

Highly experienced executive management team

intu properties plc•revaluation surplus £573 million (1), 7.6% like-for-like (ipd(2) capital...

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