URBAN SHOPPING IN AN ONLINE WORLD

MARCEL KOKKEELYIT – KESTÄVÄT KAUPUNKIYMÄRISTÖT 25.11.2014 FINLANDIA-TALO

LEADING OWNER, MANAGER AND DEVELOPER

OF URBAN GROCERY ANCHORED SHOPPING CENTRES IN

THE NORDICS AND THE BALTICS

LEADING OWNER, MANAGER, AND DEVELOPER OF URBAN GROCERY-ANCHORED SHOPPING CENTRES IN THE NORDICS AND BALTICS

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KEY FIGURES • # OF SHOPPING CENTRES 1) 36• GROSS LEASABLE AREA, SQ.M. 950,000• OCCUPANCY RATE (ECONOMIC) 95.7%• TOTAL ASSETS, EUR BILLION1) 3.3• MARKET CAP, EUR BILLION 1.6• LOAN TO VALUE (LTV) 36,7% 1) Incl. Kista Galleria 100% O Number of shopping centres

FINLAND

SWEDEN

DENMARK

ESTONIA

LITHUANIA

URBAN LOCATIONS DRIVEN BY STRONG DEMOGRAPHICS

KEY ASSET CRITERIA: • URBAN ENVIRONMENTS, WITH STRONG POPULATION GROWTH• INTEGRATED WITH PUBLIC TRANSPORTATION• DAILY SHOPPING, GROCERY ANCHORED• SHARED ACCESS TO EDUCATION, HEALTHCARE, CULTURE, MUNICIPALITY SERVICES• CONCENTRATION OF NATURAL FOOTFALL

URBAN LOCATIONS DRIVEN BY STRONG DEMOGRAPHICS

CITYCON’S FIVE CORE ASSETS

SWEDEN – KISTA GALLERIA FINLAND – ISO OMENA SWEDEN – LILJEHOLMSTORGET GALLERIA

FINLAND – KOSKIKESKUS ESTONIA – ROCCA AL MARE

35% LESS INTERNATIONAL RETAIL

BRANDS IN THE NORDICS

CITYCON IS AN INTERNATIONAL PLAYER

INCREASED LEVEL OF: • INTERNATIONAL VISIBILITY • INTERNATIONAL INVESTORS/SHAREHOLDERS• INTERNATIONAL TENANTS• INTERNATIONAL MENTALITY AND CULTURE

INCREASED LEVEL OF: • INTERNATIONAL VISIBILITY • INTERNATIONAL INVESTORS/SHAREHOLDERS• INTERNATIONAL TENANTS• INTERNATIONAL MENTALITY AND CULTURE

CITYCON IS AN INTERNATIONAL PLAYER

INCREASED LEVEL OF: • INTERNATIONAL VISIBILITY • INTERNATIONAL INVESTORS/SHAREHOLDERS• INTERNATIONAL TENANTS• INTERNATIONAL MENTALITY AND CULTURE

CITYCON IS AN INTERNATIONAL PLAYER

INCREASED LEVEL OF: • INTERNATIONAL VISIBILITY • INTERNATIONAL INVESTORS/SHAREHOLDERS• INTERNATIONAL TENANTS• INTERNATIONAL MENTALITY AND CULTURE

CITYCON IS AN INTERNATIONAL PLAYER

INCREASED LEVEL OF: • INTERNATIONAL VISIBILITY • INTERNATIONAL INVESTORS/SHAREHOLDERS• INTERNATIONAL TENANTS• INTERNATIONAL MENTALITY AND CULTURE

CITYCON IS AN INTERNATIONAL PLAYER

CITYCON IS IN THE HEART OF URBAN COMMUNITIES

ISO KRISTIINA - THEATRE

KISTA GALLERIA - DIGITAL LIBRARY

ISO OMENA - WORKSHOP WITH YOUNG PEOPLE

WE BELIEVE IN URBAN CROSS-POINTS

THAT GROW ORGANICLY

IN HELSINKI: GROWTH OF RETAIL AREA ALMOST DOUBLES POPULATION GROWTH

ITÄKESKUSNew area 91 000 sqm

KALASATAMANew area 64 000 sqm

TAPIOLANew area 30 000 sqm

ISO OMENANew area 30 000 sqm

PASILANew area 65 000 sqm

LIPPULAIVANew area 20 000 sqm

KIVISTÖNew area 100 000 sqm

LOMMILANew area 110 000 sqm

TOTAL ADDITIONAL RETAIL GLA UNTIL 2020 – 546 000 SQMCURRENT SHOPPING CENTER GLA – 994 000 SQM PROJECTED GROWTH UNTIL 2020 – 55 %

CARS CREATED NON URBAN MALLS,

SMART PHONES WILL KILL THEM

E-COMMERCE KEEPS GROWING

• URBAN ENVIRONMENTS, LOCATED WHERE PEOPLE LIVE AND WORK• STRONG POPULATION GROWTH AND NATURAL FOOTFALL• INTEGRATED WITH PUBLIC TRANSPORTATION• BENEFIT FROM HIGH BARRIERS TO ENTRY, E.G., LAND CONSTRAINTS, ZONING RESTRICTIONS• SHARED ACCESS TO EDUCATION, HEALTHCARE, CULTURE, MUNICIPALITY SERVICES

Global Nordics

Retail sales online (as% of total) Expected annual growth

13%* 17%*

8% 10%

Daily goods Expected annual growth

1-3%** 20%** 0,5%

Smart phone penetration ≥30%*** ≥60%****

* ICSC** MARKETWATCH.COM/ RETAIL FUTURE 2018*** e MARKETER**** OUR MOBILE PLANET

THE NEXT DECADE WILL BE OWNED BY NEW DISRUPTORS

OMNI-CHANNEL SHOPPING NOWCOMMONPLACE ACROSS CATEGORIES

FASHION 65% OF THE PEOPLE SAYS: I’M BUYING OFFLINE AS WELL AS ONLINE

THE CUSTOMERDOESN’T CARE

WHERE THEY BUY, BUT WHAT THEY BUY

IN THE SHOPPING CENTRE INDUSTRY IT’S

ALL ABOUT EXPERIENCE OR CONVENIENCE

CITYCON’S POSITION: NECESSITY BASED RETAIL

SOURCE: PRESENTATION BY ANDREW PHIPPS IN ESTONIAN RETAIL CONGRESS 8.10.2014

FOR CITYCON:EVERY DAY IS

OUR MOST IMPORTANT DAY

THE FUTURE OF RETAIL

ONLINE, MOBILE AND PHYSICAL RETAIL ARE INTERCONNECTED

ONLINE MOBILE PHYSICAL

BY BRINGING OUR CENTRES ALIVE AS URBAN CROSS-POINTS, WE BUILD

ON COMMERCE AND COMMUNITIES