13 May 2015 Westfield Corporation Level 29 The Manager 85 Castlereagh Street Company Announcements Office Sydney NSW 2000 ASX Limited GPO Box 4004 Sydney NSW 2001 Level 4, Exchange Centre Australia 20 Bridge Street Telephone 02 9273 2000 SYDNEY NSW 2000 Facsimile 02 9358 7241 Internet www.westfieldcorp.com Dear Sir/Madam WESTFIELD CORPORATION (ASX: WFD) SHAREHOLDER REVIEW Attached is the 2015 Shareholder Review for Westfield Corporation. Yours faithfully WESTFIELD CORPORATION Simon Tuxen Company Secretary Encl. Westfield Corporation Limited ABN 12 166 995 197 Westfield America Management Limited ABN 66 072 780 619 AFS Licence 230324 as responsible entity of Westfield America Trust ABN 27 374 714 905 ARSN 092 058 449 and as responsible entity of WFD Trust ABN 50 598 857 938 ARSN 168 765 875 WESTFIELD CORPORATION 2015 ICONIC RETAIL DESTINATIONS WESTFIELD WORLD TRADE CENTER, NEW YORK $28.5 BILLION IN ASSETS UNDER MANAGEMENT WE DEVELOP AND OPERATE ICONIC RETAIL $11.4 BILLION DEVELOPMENT PROGRAM DESTINATIONS $17 BILLION IN ANNUAL RETAIL SALES IN MAJOR CITIES AROUND THE WORLD PORTFOLIO ANNUAL SPECIALTY SALES OF $700 PSF Flagship centres annual specialty sales of $855 psf 7,400 RETAIL OUTLETS 435 MILLION CUSTOMER VISITS ACROSS 40 MALLS 16 FLAGSHIP CENTRES Representing 77% of the portfolio 24 REGIONAL CENTRES Representing 23% of the portfolio Front Cover: Artist Impression, Westfield World Trade Center This Page: Artist Impression, Westfield Century City WESTFIELD ICONIC SHOPPING CENTRES IN THE WORLD’S GREATEST CORPORATION CITIES INTEGRATING THE BEST IN FASHION, FOOD, LEISURE, ENTERTAINMENT AND DIGITAL TECHNOLOGY PORTFOLIO WITH THE WORLD’S LEADING RETAILERS SUMMARY ASSETS UNDER MANAGEMENT ASSETS UNDER MANAGEMENT BY GEOGRAPHY 19% 29% 4% 77% 71% FLAGSHIP 77% REGIONAL 19% UNITED STATES 71% REGIONAL NON CORE 4% UNITED KINGDOM 29% Flagship Regional Regional/ Non Core Total Centres 16 18 6 40 Retail Outlets 3,712 2,751 946 7,409 Gross Lettable Area (million sqf) 23.2 20.1 6.8 50.1 Assets Under Management (billion) $21.9 $5.4 $1.2 $28.5 Westfield Corporation Interests (billion) $13.3 $3.2 $1.2 $17.7 JV partner interests (billion) $8.6 $2.2 na $10.8 WFD Share 61% 59% 100% 62% As at 31 December 2014, Adjusted for the $925 million joint venture with O’Connor over three regional assets in February 2015. CONTENTS Balance Sheet 31 December 2014 ($ billion) WESTFIELD CORPORATION PORTFOLIO SUMMARY 2 CHAIRMAN’S REVIEW 4 Property Investments 18.1 CO-CHIEF EXECUTIVE’S REVIEW 6 Cash and Other Assets 1.5 ICONIC RETAIL DESTINATIONS 8 Total Assets 19.6 FASHION, FOOD, LEISURE AND ENTERTAINMENT 18 TECHNOLOGY AND INNOVATION 19 Interest Bearing Liabilities 7.4 BOARD OF DIRECTORS 20 Other Liabilities (including deferred tax liabilities) 4.2 OUR PEOPLE 22 PROPERTY PORTFOLIO 24 Total Liabilities 1 11.6 WESTFIELD CORPORATION PORTFOLIO MAP 26 Net Assets 8.0 Westfield Corporation Limited ABN 12 166 995 197 CORPORATE DIRECTORY 28 All amounts in US dollars unless otherwise specified Gearing 2 35.1% This report contains forward-looking statements, including statements regarding future earnings and distributions. These forward-looking statements are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of 1. Excludes $235m of convertible preference securities classified as minority interest given their equity characteristics. which are beyond our control, and which may cause actual results to differ materially from those 2. Pro forma for the $925 million joint venture with O’Connor over three regional assets in February 2015. expressed in the statements contained in this release. You should not place undue reliance on these forward-looking statements. These forward-looking statements are based on information available to us as of the date of this report. Except as required by law or regulation (including the ASX Listing Rules) we undertake no obligation to update these forward-looking statements. PAGE 2 WESTFIELD CORPORATION 2015 / PAGE 3 It is with great pleasure that I present this inaugural report for We are forging ahead by integrating technology, using online and Westfield Corporation. Our Annual Financial Report was sent to mobile services and all kinds of other digital applications to make shareholders in February 2015. Our new company, just ten visiting our centres easier and more fun. Our aim is to connect the months old, has already exceeded expectations in every respect, retailer with the shopper more closely than ever and help retailers and its future promises to be as exciting and successful as those build a lasting and meaningful relationship with their customers both first few months. physically and digitally. The purpose of this report is to give readers a deeper understanding This theme of innovation is being promoted throughout our of our business and the role we see Westfield Corporation playing in business, including at board level where we welcomed as a the future of global retailing. non-executive director Don Kingsborough, a respected technology entrepreneur and pioneer of the digital retail world. In late 2015 we will begin the planned staged opening of an historic development on the site of the World Trade Center in New York. This innovation will be evident at Westfield World Trade Center when Westfield World Trade Center will be the premier landmark retail it opens soon. We see it already at Westfield London and Westfield and leisure destination in downtown Manhattan. It will attract Stratford City in the UK and we’ll see the next manifestation of a global audience and display the very best of what Westfield our strategy unfold at Westfield Milan in Italy and a new centre in does – bringing together traditional retail formats, including the Croydon in South London. Planning for redevelopments at Century world’s leading retailers, with the best in dining, events and digital City in LA, UTC in San Diego and Valley Fair in San Jose in the technology. In many ways, it will provide a window on the future in US is also underway. Over the coming years $11.4 billion will be terms of the kind of centres Westfield Corporation will create and invested in our development program, of which Westfield’s share is manage in the world’s leading cities in the years ahead. approximately $6 billion, and this is expected to generate significant capital value and growth in earnings over the long term. We will Westfield Corporation is a new company. But it is steeped in also continue to divest non-core assets and reinvest the proceeds the history and tradition of Westfield, the company I co-founded into high quality development opportunities. To the extent this 55 years ago. It emerged as part of a major corporate restructure in occurs investors should expect that short term earnings growth 2014 which saw Westfield Corporation’s business separated from will be impacted but this will be more than offset by the expected the former Westfield Group’s Australian and New Zealand portfolio significant capital appreciation as the development projects which was merged with Westfield Retail Trust to create Scentre complete. Group, an independent company which now owns and manages Westfield Centres in Australia and New Zealand. As at February All of this will call for even greater commitment and collaboration 2015, the combined market capitalisation of these two entities is within our executive team. There is already a great exchange of over A$41 billion, representing A$12 billion of value creation for the ideas and know-how between our US and European colleagues. securityholders who participated in the restructure – underscoring This will intensify as we continue to encourage a “one-company” the rationale of the transaction. approach to our global operations. This international collaboration, taking the best-of-the-best and applying lessons learned from one Westfield Corporation now owns and manages an international market to another, has always been a Westfield strength. It will be portfolio in the United States and United Kingdom. These centres even more important in the future. are valued at $28.5 billion and are home to 7,400 outlets generating $17 billion in annual retail sales. I am excited about our prospects. The great cities of the world are growing and changing in ways that open up enormous While our core business of creating and operating high quality opportunities for us to provide the essential and valuable shopping centres has never changed, the way we go about it infrastructure and services that people need. Westfield Corporation has. It has been a continuing evolution by which our centres have will be at the forefront of these changes and I am proud to be improved in many different ways. Over time, leading edge design leading the company into this new era. has become more important and customer service, the kinds of retail offer, the introduction of fine dining and entertainment have all contributed to the change. With Westfield Corporation, this evolution is accelerating. The world’s great cities are now our focus. Providing vibrant, interesting places in these densely populated, downtown locations for people to visit, shop, be entertained and socialise is paramount. Frank Lowy AC Chairman CHAIRMAN’S REVIEW FRANK LOWY, AC WESTFIELD CORPORATION 2015 / PAGE 5 We have already achieved pleasing results for our first six months Our close relationships with global retailers is unique and provides operating as Westfield Corporation. Reflecting on the restructure us with the ability to work with these retailers at the highest quality of Westfield Group into Westfield Corporation and Scentre locations on multiple continents. This interaction has accelerated Group in June 2014, our rationale was clear. We believed that the evolution towards creating the very different kinds of shopping by creating two separate geographic groups we would unlock centres from those we traditionally developed.