Note: Photographic content has been commissioned post-impact of Covid-19 Positioning Landsec for growth Landsec – Strategy review 2020 4 Overview Mark Allan Our strategic priorities Mark Allan Marcus Geddes Colette O’Shea David Heaford Culture, capability and organisation Mark Allan Financial implications Martin Greenslade Summary Mark Allan Landsec – Strategy review 2020 5 Six key findings that inform our strategy Our strategic review identified six conclusions which shaped the development of our strategy London portfolio Talent Balance sheet Very high-quality Significant capability We have a strong London portfolio and expertise balance sheet in the business Resilient and liquid With an uncertain Clear opportunity outlook due to Covid-19 Strong foundation to leverage this, through and Brexit we cannot for new growth developing the right afford to be complacent opportunities culture Landsec – Strategy review 2020 6 Six key findings that inform our strategy Our strategic review identified six conclusions which shaped the development of our strategy Retail Portfolio mix Covid-19 Not all retail is the same Some elements of the Long-term implications of portfolio are subscale with Covid-19 are unclear and Structural challenges are little or no competitive our strategy will adapt as the significant, but limited primarily advantage picture becomes clearer to our regional shopping centres (only 13% of our portfolio) Structural growth areas We are managing near-term under-represented challenges proactively and We need to be realistic in our focused on positioning the outlook and proactive in our business for the undoubted decision making post-pandemic opportunity Balance sheet strength gives us the ability to withstand short-term rental pressures Landsec – Strategy review 2020 7 Our approach to strategy Combining the best of Landsec with fresh thinking Operational risk = opportunity Customers are the top priority Culture is as important as strategy Positioning Landsec Supported by long-term macro trends for growth A clear, authentic purpose Sustainable competitive advantage Landsec – Strategy review 2020 8 Six ‘Global Forces of Change’ will impact our business over the next 10+ years Macro trends shaping our future markets, customers and competitors Demographic and Technologically Climate change and Borderless Shifts in global Rapid urbanisation social change advanced living resource scarcity access economic power One in three A global population The digital Growing energy, The liberalisation Political unrest, people will live in boom, paired with landscape will water and food of global economic populism, trade cities of at least people living continue to disrupt demands, alongside policy and the wars and mounting 500,000 habitants longer and having how we live, work, rising weather and accessibility of air recessions are by the year 2030 fewer children, will communicate, health events show travel has opened reshaping the map (source: UN) drive significant shop and beyond the global need to borders, supply of economic power demographic shifts reverse chains and trade and driving new environmental patterns culture clashes degradation Covid-19 impact Landsec – Strategy review 2020 9 We have a clear, authentic purpose Our purpose articulates what we want to Our purpose is… achieve, how we will do Sustainable places. To create places that make a lasting positive contribution to our it and the benefits this Connecting communities and our planet. will bring to our communities. stakeholders To bring people together, forming Realising potential. connections with each other and the spaces we create. To provide our customers, partners and people with a platform to realise their full potential. Landsec – Strategy review 2020 10 Landsec’s six key areas of competitive advantage The quality of Our track record, Our scale our portfolio reputation and relationships Our ESG Our people Our development leadership expertise Landsec – Strategy review 2020 11 Four strategic priorities Our strategy Our central Our retail business Capital from subscale Through urban opportunities will comprise London business (shopping centres and outlets) sectors four priority — London will remain a — Structural shifts are putting — Our portfolios of subscale — Urban mixed-use is a gateway city retail rents under pressure sectors have been growth area for Landsec areas as we but not all parts of the earmarked for disposal in — — look to High quality, best-in-class sector affected in the the medium-term Our analysis of portfolio same way megatrends shows there is — Lack of scale or structural support for this reshape the — Portfolio should provide — Understanding where competitive advantage are area resilience in the down- sustainable rent levels reasons for exit portfolio — cycle currently sit is fundamental We have attractive existing — We will reinvest proceeds opportunities, but will also to position — to our approach New opportunities will into higher growth areas use a number of Landsec emerge post-Covid — We will apply lessons approaches to expand — We will align the business learned from the outlets and accelerate progress for growth model to shopping centres to growth sectors and — We have a proven skillset geographies — We will re-evaluate the — We will consider urban — Creating value through type and volume of space at our centres regeneration opportunities development and a greater in large regional centres range of propositions — New leasing models will over time — Targeted recycling be based on alignment can fund long-term growth and affordability – a customer-centric approach is key Landsec – Strategy review 2020 12 How do we think about risk and return? Positioning the business for growth with an appropriate level of risk Total Generating The Leverage return “alpha” cycle We intend to focus on A greater focus on Our tolerance for We operate in a total return through the value creation financial leverage cyclical market cycle and position the will be guided by business to deliver Taking on more the level of Understanding and above market returns risk but doing so operating risk in the responding to the in a managed, business and our cycle is a key part Income is a key part of proactive way view of the cycle of generating and the property return, protecting alpha but should not be the key driver Landsec – Strategy review 2020 1 2 3 4 14 Our central London portfolio Other 5% Retail 11% £8.2bn portfolio 83% Office High-quality portfolio 83% office sector in central London weighting Like-for-like office High liquidity Southwark and other 11% WAULT 8.1 years1 in core markets Mid-town 21% 5.6m sq ft 50% West End office City 18% 1 As at 31 March 2020 Landsec – Strategy review 2020 1 2 3 4 Strong defensive characteristics Central London portfolio High-quality customers Stable and secure income Growth potential Bubble size reflects total asset value Income quality Low capex requirements City Victoria Southwark and other West End Mid-town Landsec – Strategy review 2020 1 2 3 4 16 Delivering growth Myo, 123 Victoria Street, SW1 Targeted submarket and sector exposure Judicious development across a diverse pipeline CGI of Portland House, SW1 Southwark Customer-led products responding to changing needs CGI of Lavington Street, SE1 Landsec – Strategy review 2020 1 2 3 4 17 London will continue to be a magnet for global capital, talent and tourism Top 15 global business districts (as per EY and Urban Land Institute index score) London Other Europe Non-Europe 59 58 55 52 52 49 46 46 46 46 43 43 40 40 38 London New York Tokyo Paris London New York Beijing Seoul Singapore Chicago Toronto San Hong Kong Sydney Amsterdam The City Midtown Marunounchi La Canary Financial CBD Gangnam Downtown The Loop Financial Francisco Central CBD Defense Wharf District Core District Financial District District Points movement since 2017 -2.5 -1.2 2.7 1.5 1.9 0.4 4.7 n/a -0.1 -0.8 n/a n/a 3.7 n/a 1.5 Source: “The Attractiveness of Global Business District (GBD)” Report Ernst & Young / Urban Land Institute (May 2020) Note: (1) 84% of respondents consider this factor the most important in determining the attractiveness of GBD; n = 349; (2) City of London and Canary Wharf ranked 1st and 2nd respectively Landsec – Strategy review 2020 1 2 3 4 18 Investment volumes Covid constrained, but set for strong end to the year £bn 20 15 10 5 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD Q1 Q2 Q3 Q4 10-year average Source: CBRE Research Landsec – Strategy review 2020 1 2 3 4 19 Five occupier themes Tech remains Deferred Strong pre-let Grey space Hybrid of active decision- momentum pushing up physical making vacancy rate and digital 1 2 3 4 5 Landsec – Strategy review 2020 1 2 3 4 20 Partnering with customers —Creating Covid secure workplaces —Qualitative and quantitative research from existing and prospective customers — 82% maintaining or increasing space — 81% believe office-based work boosts productivity —Supporting the ground floor to survive and evolve 80 Victoria Street, SW1 Landsec – Strategy review 2020 1 2 3 4 21 Office customer proposition We form partnerships We offer great experiences We create healthy and with customers for clients and employees sustainable spaces Landsec – Strategy review 2020 1 2 3 4 22 Blank Canvas Customised Myo Self contained offices completed Self contained offices fitted and Private serviced offices with to a Cat A or Shell condition with managed by Landsec ‘on-demand’ communal facilities and traditional pricing fitout delivery dedicated on-site team