APRIL 28TH, 2017 CITYCON PRESENTATION LIPPULAIVA – STUDEN IDEA & DESIGN COMPETITION BREEFING MEETING THIS IS CITYCON LEADING OWNER, MANAGER AND DEVELOPER OF SHOPPING CENTRES IN THE NORDICS AND BALTICS – 51 shopping centres1) – 200 million visitors p.a. – 13 managed/rented assets – Market cap. EUR 2 billion – GLA 1.2 million sq.m. – Credit ratings: Baa1 & BBB FINLAND PORTFOLIO VALUE Estonia and Denmark NORWAY SWEDEN 20 7% 2 Finland 9 Sweden1) 19 ESTONIA 27% 36 % 5 EUR billion DENMARK 1 Norway 30% 3 Key figures 31 March 2017 1) Including Kista Galleria Number of shopping centres TRUE PAN-NORDIC LEADER 340 140 125 95 90 FINLAND SPONDA ELO KEVA IDEAPARK 300 260 210 155 150 #1 SWEDEN ATRIUM UNIBAIL- OLAV THON STEEN &STROM LJUNGBERG RODAMCO 970 #2 #3 #2 340 205 140 95 NORWAY OLAV STEEN & STROM SALTO SCALA THON 145 100 80 ESTONIA ASTRI LINSTOW Retail GLA (thousand sq.m.) Source: Company reports, Pangea Property Partners analysis, as per April 2017 and Finnish Shopping Centres 2017. Includes only majority-owned 4 shopping centres. Includes some assumptions on retail proportion out of total GLA, where retail data not available. URBAN CROSSPOINTS DRIVEN BY STRONG DEMOGRAPHICS CORE ASSETS: –Urban environments, located where people live and work –Strong population growth and natural footfall –Integrated with public transportation –Shared access to education, health care, culture, municipal services 5 STRONG GROCERY-ANCHORING ‒ OVER 100 GROCERY STORES1) 2% 1% 9% 24% 9% Home and leisure Fashion Rental income Groceries Services and offices 269 Health and beauty 13% Cafés and restaurants MEUR Specialty stores Department stores 24% 18% As per 31 December 2016 6 1) Including Kista Galleria (50%) 90% OF CITYCON’S SHOPPING CENTRES ARE LOCATED IN CAPITAL OR MAIN CITIES ISO OMENA, KISTA GALLERIA, LILJEHOLMSTORGET KOSKIKESKUS, HERKULES, HELSINKI AREA STOCKHOLM2) GALLERIA, STOCKHOLM TAMPERE SKIEN GLA, sq.m. 1) 101,000 92,500 40,500 33,100 49,300 Visitors, million 9 19 10 6 3 Sales, MEUR 230 241 186 130 143 Note: Figures are for 2016 1) GLA updated as per April 2017 7 2) Kista Galleria (100%) HISTORY OF CITYCON +25 YEARS OF RETAIL EXPERIENCE AND NORDIC EXPANSION From Finnish office assets To international retail premises To a true Pan-Nordic leader 1988 2003 2011 . Founded by Sampo Pension Ltd, . Strategy to include also (re)development . New management and redefined strategy Imatran Voima Oy, Rakennustoimisto of assets 2013 A. Puolimatka Oy and Postipankki . Ownership base internationalised . Acquisition of Kista Galleria in Stockholm . Listed on Helsinki Stock Exchange 2005 in JV with CPPIB . Office assets . International expansion starts: first . Investment-grade credit ratings by S&P 1998 acquisitions in Sweden and Estonia and Moody’s . Focus shifted to retail properties 2007 2014 1999 . Acquisition of Iso Omena in Helsinki area . CPPIB becomes strategic shareholder, . Finland's leading listed property 15% ownership investment company specialising 2015 in retail premises . Acquisition of Norwegian Sektor Gruppen for EUR 1.5 billion 8 OUR STRATEGY FASHION FOOD & beverage Enriching Health & beauty URBAN Entertainment & enjoyment GROCERY crosspoints anchored Municipal Linked to services public transport WHAT WE BRING TO THE MARKET: ATTRACTIVE URBAN VENUES OWN MANAGE DEVELOP ‒ Strong portfolio of everyday ‒ Inhouse retail expertise throughout ‒ Improved commercial shopping centres the shopping centre value chain attractiveness and competitiveness ‒ Located in growing urban areas ‒ 290 retail experts in 5 countries ‒ Development investments of in Nordic and Baltic cities ‒ Pan-Nordic approach with a cross- MEUR 150-200 p.a. and smaller ‒ Long-term investor border leasing team refurbishments WE ARE Passionate, Solution- oriented, Together One 11 CREATING GREAT AND CONSISTENT EXPERIENCES AT EVERY STEP OF THE CUSTOMER JOURNEY DECISION 1 TO GO 2 3 GETTING THERE ENTRY 5 EXIT 6 4 FEEDBACK/ ATMOSPHERE/ LOYALTY EXPERIENCE 12 WE LOOK AS ONE BRAND AND SPEAK WITH ONE VOICE URBANISATION & OMNICHANNEL DRIVE RETAIL GROWING URBAN FOCUS ON ONLINE & CITIES LIFESTYLE SUSTAINABILITY OFFLINE 14 GROWING CITIES +600,000 MOVING TO STOCKHOLM AREA BY 2030 URBAN LIFESTYLE 31% OF PEOPLE VISIT A SHOPPING CENTRE JUST TO EAT AND DRINK Source: CBRE Food & Beverage 2015 2/3 OF GLOBAL CONSUMERS SAY THEY ARE WILLING TO PAY MORE FOR SUSTAINABLE BRANDS FOCUS ON A SURVEY BY NIELSEN N.V. SUSTAINABILITY IN 2015 PROPERTY PORTFOLIO AND DEVELOPMENT PIPELINE STABLE AND SOLID OCCUPANCY WITH STRONG ANCHOR TENANTS 97% 96% 96% 96% 96% 29 stores 20 stores 95% 6.6% of rental income 4.5% of rental income 110 stores 24 stores 4.4% of rental income 2.2% of rental income 21 stores 2.0% of rental income 2012 2013 2014 2015 2016 19 ATTRACTIVE TENANT MIX OF NORDIC AND INTERNATIONAL BRANDS GROCERIES & CAFÉS & LEISURE & HOME & HEALTH, BEAUTY FASHION DAILY NEEDS RESTAURANTS SPORT DESIGN & SERVICES 20 KEY INITIATIVES 2016 FORERUNNER IN SUSTAINABILITY – Energy consumption, kWh/sq.m. -6% since 2014 Largest shopping centre portfolio with BREEAM In-Use certification in the Nordic countries (target -10% by 2020) – Within top 5% of globally reviewed companies 100% – Citycon’s Buskerud unique in using >80% CO2 instead of freon as a refigrerant, 80% 74% cooling the entire shopping centre – Finland's first pop-up shopping centre, 60% Pikkulaiva, will be built from recyclable 49% modules 40% – Iso Omena to have the largest solar power plant realised in a Finnish retail property 20% – Jakobsbergs Centrum shifted to 0% geothermal heating & cooling reducing 0% the overall energy consumption by up Dec. 2014 Dec. 2015 Dec. 2016 Target 2017 to 65% 21 THE SUSTAINABLE SHOPPING CENTRE ENERGY & WATER WASTE MANAGEMENT LOCAL ENGAGEMENT SAFETY EFFICIENT SOLUTIONS & MAINTENANCE & SERVICES & SECURITY – Effective heat recovery – Reducing, reusing and –Part of the local community –Design and building materials – LED lightning recycling as well as with various services and technology PROXIMITY disposing of waste –Natural meeting places –Procedures & training AND EASY ACCESS – Lo-flow water fixtures and toilets – Location in urban hub – Seamless access to public transportation ENVIRONMENTALLY FRIENDY ACCESSIBILITY FOR ALL & HEALTHY MATERIALS ENVIRONMENTALLY FRIENDLY –People with disabilities, youth, elderly, children, families & HEALTHY TRANSPORTATION ENERGY PRODUCTION –Reducing carbon footprint of the building by low-carbon materials –Continuous dialogue with local – Ample bicycle parking –Partly produced locally, –Wood, low-carbon concrete, residents and other stakeholders – Good pedestrian access fossil fuel free production recycled building elements – Parking spaces and charging stations –Solar panels 22 for electric vehicles and bicycles –Geothermal heating and cooling URBAN DEVELOPMENTS PROGRESSING – ISO OMENA PHASE 2 TO OPEN 98% LEASED ONGOING PROJECTS Expected Cumulative Area before/ Yield on cost1), Pre-leasing, Completion City investment, investment, after, sq.m. % % target MEUR MEUR Phase 2: 1 Iso Omena Helsinki area 63,300/101,000 270.0 258.6 6.0 Total SC: 98% April 2017 2 Porin Asema-aukio2) Pori 18,800/23,000 40.0 38.1 - 100% Q2/2017 3 Mölndal Galleria Gothenburg - /24,000 60.0 (120.0) 32.9 7.0 70% Q3/2018 4 Lippulaiva Helsinki area 19,200/42,000 200.0 27.9 6.5-6.8 60% 2020 1) Expected stabilised yield (3rd year after completion). Calculated on total development costs, also including financing and Citycon internal costs. 2) New campus for the Satakunta University of Applied Sciences. Citycon has signed an agreement to sell the property at completion of the project. Citycon has also signed an agreement with TK Development regarding the forward purchase of Straedet in Köge in the greater Copenhagen area for MEUR 75 (Q2/2017-Q1/2018). 1 2 3 4 23 ISO OMENA HAS BECOME THE LEADING SHOPPING AND LEISURE DESTINATION IN THE HELSINKI AREA – Second phase opening 20.4. Addition of quality F&B and leisure – Zara opening early April – Strong tenant demand, 98% leased – The 6,000 sq.m. service square of Espoo has attracted >1 million visitors since opening in August – Citycon’s HQ to move to Iso Omena in May 2017 – Information on metro opening expected in May 24 MÖLNDAL GALLERIA BECOMES A TOP CLASS COMMUNITY SHOPPING CENTRE IN THE HEART OF GROWING AREA – Part of Mölndal’s new city centre, expected annual visitors of 5-6 million after opening in Q3/2018 – 70 shops, restaurants and cafés –Strong tenant demand with several major chains signed e.g. H&M, Systembolaget, Lindex, KappAhl and a large ICA grocery store – 50% JV with NCC PD, Citycon to purchase NCC’s share after completion 25 LIPPULAIVA – FROM A MONOFUNCTIONAL CENTRE TO A MIXED-USE URBAN CROSSPOINT –Demolition of current shopping centre and rebuilding a completely new, modern and urban shopping centre. Target opening 2020 –Temporary 10,000 m2 centre fully leased –Daily shopping concept with strong grocery focus (>35%) –New metro line to be integrated in the centre and housing to be built on top –Wealthy catchment population with strong population growth (+18% in 10 yrs) 26 DEVELOPMENT PIPELINE – URBAN LOCATIONS IN CAPITAL CITIES Area before/ Expected Target – Development investments of City after, investment, initiation/ MEUR 150-200 p.a. sourced sq.m. MEUR completion through recycling COMMITTED of capital Down Town Porsgrunn 38,000/46,000 75 2017/2019 PLANNED (UNCOMMITTED) Tumba Centrum Stockholm 23,400/32,000 50 2018/2020 Kista Galleria Stockholm 92,500/111,000 801) 2019/2021 Oasen Bergen 31,300/43,300 80 2019/2021 Liljeholmstorget Galleria Stockholm 40,500/63,000 120 2020/2022 Trekanten Oslo 23,900/45,000 110 2020/2022 1) Citycon’s share MEUR 40 (50%) 27 DOWN TOWN – SHOPPING CENTRE EXTENSION IN THE HEART OF THE CITY BY THE RIVERSIDE – Strong existing shopping centre of 24,000 sq.m. with an integrated bus terminal – (Re)development and extension of 9,000 sq.m. retail with more shopping, restaurants and cafés – Additional residential to be built – Total development investment of 75 MEUR 28 ACQUISITION IN BERGEN – CREATING AN URBAN FLAGSHIP OF OASEN – Sale and leaseback with insurance company Tryg (10 yrs contract) – Potential for retail extension 31,300 => 43,300 sq.m.