Klepierre : First-half 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 I R S T - H A L F 2 0 2 3

• TABLE OF CONTENTS

1 TRADING UPDATE	3
Retailer sales and footfall	3
Rent collection	4
Gross rental income and net rental income	4
Leasing update	5
2 BUSINESS ACTIVITY BY REGION	7
France (38% of net rental income)	7
Italy (21% of net rental income)	8
Scandinavia (12% of net rental income)	8
Iberia (13% of net rental income)	9
Netherlands & Germany (8% of net rental income)	9
Central Europe (7% of net rental income)	10
3 NET CURRENT CASH FLOW	11
Net current cash flow	11
Contribution of equity-accounted companies	12
4 INVESTMENTS, DEVELOPMENTS AND DISPOSALS	13
Development pipeline	13
Disposals	14
5 PORTFOLIO VALUATION	15
Property portfolio valuation	15
Management service activities	18
6 FINANCING POLICY	20
Financial resources	20
Interest rate hedging	22
Cost of debt	23
Credit ratings and covenants	24
7 EPRA PERFORMANCE INDICATORS	25
EPRA Earnings	26
EPRA Net Asset Value metrics	26
EPRA Net Initial Yield	29
EPRA Vacancy Rate	30
EPRA Cost Ratio	30
EPRA Capital Expenditure	31
EPRA Loan-to-Value ratio (EPRA LTV)	32
8 OUTLOOK	33

Limited review procedures on the interim condensed consolidated financial statements have been completed.

The auditors are in the process of issuing their report.

2	SUPPLEMENTAL INFORMATION TO THE EARNINGS RELEASE - FIRST-HALF 2023

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TRADING UPDATE

Retailer sales and footfall

Klépierre's operating performance continued to improve in the first half of 2023, as illustrated by solid like-for- like growth in retailer sales, up 8.0% compared to the same period last year.

Footfall also jumped by 10% during the period compared to 2022.

By geographic area, all countries contributed to the growth momentum and exceeded 2022 retailer sales levels. Southern regions were dynamic over the period with Iberia posting growth of 11.2% and Italy experiencing an 8.7% increase. Momentum was also very positive in the Netherlands & Germany (up 17.4%) and Central Europe (up 9.9%), while France was up 5.7% and retailer sales in Scandinavia expanded by 6.4%.

Retailer sales growth was strong across most segments, with increases ranging from 6.4% for fashion to 16.5% for food & beverage. Health & beauty outperformed the Group average with growth of 10.8% while household equipment was down slighlty (-1.6%) due to solid 2022 figures as this segment was the best performer during the pandemic.

Retailer sales by geography compared to 2022(a)

	Geography		Like-for-like change(a)	Share
	(in total reported retailer sales)
	France	+5.7%	40%
	Italy	+8.7%	25%
	Scandinavia	+6.4%	12%
	Iberia	+11.2%	10%
	Netherlands & Germany	+17.4%	7%
	Central Europe		+9.9%	6%
	TOTAL	+8.0%	100%

(a) Change on a same-store basis, excluding the impact of asset sales and acquisitions and excluding Turkey.

Retailer sales by segment compared to 2022(a)

			Like-for-like change(a)	Share
	Segment	(in total reported retailer sales)
	Fashion	+6.4%	34%
	Culture, Gifts & Leisure	+7.4%	21%
	Health & Beauty	+10.8%	15%
	Food & Beverage	+16.5%	13%
	Household Equipment	-1.6%	11%
	Other	+14.6%	6%
	TOTAL	+8.0%	100%

(a) Change on a same-store basis, excluding the impact of asset sales and acquisitions and excluding Turkey.

SUPPLEMENTAL INFORMATION TO THE EARNINGS RELEASE - FIRST-HALF 2023

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Rent collection

The Group collection rate is 96.5% for the first half of 2023, compared to 96.4% as of December 31, 2022.

Gross rental income and net rental income

Gross rental income (on a total share basis)

In millions of euros	06/30/2022	06/30/2022(a)	06/30/2023(b)
France	226.8	210.7	210.6
Italy	107.2	102.1	116.9
Scandinavia	75.9	67.1	66.4
Iberia	63.0	63.0	69.9
Netherlands & Germany	53.8	49.6	55.4
Central Europe	32.2	32.2	36.6
Other countries	7.5	7.2	8.1
TOTAL SHOPPING CENTERS	566.4	532.0	563.9
Other retail properties	10.9	2.8	2.6
TOTAL	577.3	534.7	566.5

1. Excluding the positive non-recurring income statement impact related to the 2020 and 2021 account receivables (€19.7m) and the gross rental income generated by disposed assets (€22.9m).
2. Excluding the positive non-recurring income statement impact related to the 2020 and 2021 account receivables.

Net rental income (on a total share basis)

				Like-for-like
In millions of euros	06/30/2022	06/30/2022(a)	06/30/2023(b)	change
France	198.1	172.4	181.4	+5.3%
Italy	98.6	88.3	103.5	+7.8%
Scandinavia	65.1	56.3	59.1	+5.0%
Iberia	57.2	54.9	63.4	+12.1%
Netherlands & Germany	36.9	32.6	36.5	+11.9%
Central Europe	30.1	29.8	31.9	+7.1%
Other countries	4.3	4.2	6.0	+41.5%
TOTAL SHOPPING CENTERS	490.3	438.6	481.8	+7.6%
Other retail properties	11.0	3.2	2.3
TOTAL	501.3	441.7	484.1	+7.3%

1. Excluding the positive non-recurring income statement impact related to the 2020 and 2021 account receivables (€38.6m) and the net rental income generated by disposed assets (€21.0m).
2. Excluding the positive non-recurring income statement impact related to the 2020 and 2021 account receivables.

Net rental income amounted to €484.1 million in the first half of 2023, a record 7.3% like-for-like(1) year-on-year.

The rebound in retailer sales as well as the sustainable occupancy cost ratio for tenants have allowed the Group to capture reversion through a weighted 6.1% positive indexation effect, and to deliver a remarkable 28% like- for-like increase in ancillary income (turnover rents up 36%, parking lot revenues up 32% and specialty leasing revenues up 13%). Growth was also supported by disciplined management of property charges which translated into an improvement in the ratio of gross to net rental income.

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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.

4	SUPPLEMENTAL INFORMATION TO THE EARNINGS RELEASE - FIRST-HALF 2023

Chart 1 Breakdown of shopping center NRI by region as of June 30, 2023 (on a total share basis)

Other countries

Central Europe 1%

Netherlands &	7%	France
	38%
Germany
8%
Iberia
13%

Scandinavia

12%

Leasing update

Italy 21%

Klépierre registered a dynamic leasing performance over the first half of the year, highlighted by the signing of 809 leases (up 16% compared to the first half of 2022), which confirmed the appeal of the Group's offering among retailers. Dealflow included 634 renewals and re-lettings, with a 5.3% positive reversion rate. Klépierre continued to create value by leveraging its key competitive advantages: (i) the high-quality portfolio in key locations, (ii) the strength of the leasing platform and (iii) the inherent agility of the Group's shopping malls, which are ideally adapted to dynamic banners that meet constantly-evolving customer expectations. In this context, the flight-to-quality strategy pursued by retailers over recent years is supporting demand for space in the Group's assets. Overall, this translated into a 100-basis point year-on-year increase in occupancy to 95.7% as of June 30, 2023 (vs. 95.8% as of December 31, 2022), while the occupancy cost ratio remained at the sustainable level of 12.8% versus 12.9% as of December 31, 2022.

Dealflow remained dense through the first half of the year with omnichannel and international retailers, materialized by the opening of two new Primark stores at Centre Deux and Nave de Vero in March, and the signing of the extension of Zara's flagship store at Odysseum to 3,000 sq.m. Calzedonia Group continued to expand in Italy and abroad, scaling up flagship banners Intimissimi, Intimissimi Uomo and Falconeri by opening four new stores at La Gavia (Madrid, Spain), Plzeň Plaza (Czech Republic) and Nave de Vero (Venice, Italy). The Italian group also inaugurated two new stores in France, further entrenching its footprint in the country. In addition, Klépierre accompanied Normal's expansion in Portugal (three deals) and Spain, where the brand is expected to make its market entry by the end of 2023. The first half of 2023 also illustrated the rapid rollout of on-trend fashion brands across Klépierre's portfolio. Denim brand Jack & Jones strengthened its positioning in France (seven deals signed) and in Italy (four deals signed), while fast-growing down jacket brand Jott, which already has six stores in France, is planning to expand its business internationally by opening its first Dutch store at Hoog Catharijne (Utrecht, Netherlands).

On top of this, the Group also supported the ramp-up of the services segment, notably through its collaboration with We Audition, which is expanding in France and unveiled five stores. Meanwhile, three renewals were signed with Medi Market pharmacies in Italy, bringing their total to five stores, four of which have opened this year.

Over the last six months, Klépierre has also capitalized on its strong partnerships in the very dynamic sneakers and sports vertical, strengthening its ties with JD Sports by signing three deals in Italy (Globo and Le Vele

SUPPLEMENTAL INFORMATION TO THE EARNINGS RELEASE - FIRST-HALF 2023

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