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Premium outlets Investor and analyst visit 3 July 2017 Batavia Stad, Amsterdam

Today’s agenda

01

Introduction/welcome

02

Outlets investment market overview

03

Delivering the outlets experience to brands

04

VIA Outlets strategy

Timon Drakesmith – CFO and MD Premium Outlets, Hammerson

Richard Ching – Partner, Retail & Outlet Malls, Cushman & Wakefield

Octavia Overholser – Business Director, VIA Outlets Wilco Wortelboer – Head of Outlet, PVH Netherlands

Duncan Agar – Chief Operating Officer, Value Retail Patrick Jansen – Centre Director, Batavia Stad Fashion Outlet

Tour of Batavia Stad Fashion Outlet

2

The only listed European REIT with strategic exposure to premium outlets

One of a kind European outlet platform accumulated over 19 years, hard to replicate High-growth sector, aligned with consumer preferences and retailer channel orientation Valuable, long-standing partnerships sharing complementary expertise Consistent returns provided by diversity of centre locations and customer origination Attractive upside through repositioning of VIA Outlets

Meaningful strategic exposure

18%

Hammerson portfolio

(1)

Leading European platform

424,000m2

Future growth drivers: •

Tourism

•

New brands

•

Extensions

•

Targeted acquisitions

Lettable space

3 (1) As at 31 December 2016, proforma for full completion of IRUS acquisition

Through-thecycle organic sales growth

Value Retail: sales density growth (EUR/m2)

(1)

€18,000 €16,000

Sales density 11% CAGR

€14,000 €12,000 €10,000 €8,000 €6,000 €4,000 €2,000 €0

2007 (1) (2)

2008

2009

2010

2011

2012

Sales density CAGR 2007 to 2016 across Value Retail current portfolio of nine Villages (opened since 2007) Growth run rate for 2017 YTD to May

2013

2014

2015

2016

2017 YTD (2) 4

A platform of considerable scale – leading market position

£1.9bn

Gross asset value

(1)

Value Retail - £1.4bn

(1)

Europe’s leading operator of luxury outlet villages Hammerson 40% ownership Growth through extensions VIA Outlets - £0.5bn

(1)

Partnership between Hammerson, APG, Value Retail and Meyer Bergman

19

Villages

13

Countries

60m

Visitors p.a.

Hammerson 47% ownership Acquisition and turnaround strategy

(1) Hammerson share. Includes VIA Outlets acquisitions of Zweibrücken, Porto, Seville, Wroclaw and Festival Park

5

Operating in two categories of the European outlet market

Value Retail

€30,000+

International fashion and luxury brands

Increasing sales densities €/sq m

€2,000–€10,000

Mainstream fashion brand outlets

VIA Outlets

<€2,000

Low-end discount outlets

6

Working collaboratively with capital and operational partners

Hammerson

Value Retail

Retail and investment market experience

Luxury brand relationships

Organisational structure and governance

Retail management expertise

Operations, finance and IT

Tourism marketing

APG

Meyer Bergman

Long history investing in outlets

Retail property focused

Insight into off-market acquisition pipeline

Outlets acquisition experience

Breadth of property expertise

Acquisition/disposal execution

7

Significant contribution to Hammerson’s performance

5 year value creation (£m)

(1)

3.4x

1,400

capital return

1,200 1,000 800 600 400 200 0

Premium outlets NAV 2011

26%

Capital invested

5 year IRR

Income distribution

Valuation uplift

Premium outlets NAV 2016 La Roca Village, Barcelona

(1) NAV of Value Retail and VIA Outlets 31 December 2011 to 31 December 2016. Capital invested includes acquisition of VR investment stakes and VIA Outlet acquisitions. Excludes Zweibrücken and Villa de Conde NAV and Seville and Wroclaw debt.

8

The future: confidence in continued track record of delivery

10 years consistent sales density growth

Organic growth

Structural tourism growth

New retailers realising outlets opportunity

Value-add asset management

VIA Outlets acquisitions

Target IRR +10% Selective further acquisitions

Value Retail extensions

Bicester, opening October 2017 34 new boutiques YoC 15%

Potential increase in Value Retail ownership

Value Retail economic ownership now 40% from 20% in 2011

9

Appendices

Premium outlets portfolio Value Retail Villages

VIA Outlets centres

Bicester Village, UK GLA: 22,700m2 Boutiques: 135

Batavia Stad Amsterdam Fashion Outlet GLA: 31,000m2 Units: 110

(1)

La Roca Village, Barcelona GLA: 23,400m2 Boutiques: 141

Fashion Arena Prague Outlet GLA: 24,100m2 Units: 98

Las Rozas Village, Madrid GLA: 16,500m2 Boutiques: 105

Freeport Lisboa Fashion Outlet GLA: 29,500m2 Units: 98

La Vallée Village, Paris GLA: 21,400m2 Boutiques: 111

Hede Fashion Outlet, Gothenburg GLA: 16,300m2 Units: 53

Maasmechelen Village, Brussels GLA: 19,500m2 Boutiques: 106

Landquart Fashion Outlet, Zurich GLA: 20,700m2 Units: 71

Fidenza Village, Milan GLA: 20,900m2 Boutiques: 122

Mallorca Fashion Outlet GLA: 33,100m2 Units: 52

Wertheim Village, Frankfurt GLA: 21,100m2 Boutiques: 121

Sevilla Fashion Outlet GLA: 16,300m2 Units: 67

Ingolstadt Village, Munich GLA: 20,500m2 Boutiques: 120

Wroclaw Fashion Outlet, Poland GLA: 13,700m2 Units: 85

Kildare Village, Dublin GLA: 16,800m2 Boutiques: 99

Zweibrücken Fashion Outlet, Germany GLA: 29,400m2 Units: 113 Vila de Conde Fashion Outlet, Portugal GLA: 27,800m2 Units: 125

(1) (2)

Not including extension opening October 2017 Including extension opened May 2017

11

Bicester Village

Commenced trading 1995 Extended: 1997, 2000, 2002, 2008

98%

Occupancy

46%

Hammerson ownership

October 2017: 34 new boutiques £100m development cost YoC 15% 6 million footfall Third most visited tourist landmark in UK Tax free sales (non-EU visitors) account for 31% of total Village sales Largest visitor groups: China, Hong Kong, Malaysia, Saudi Arabia, India, Thailand

12

Tourism is a key driver of outlets sales growth

Top 10 source markets represent 68% of sales in EU destinations, and is forecast to grow by 8%

Non-EU arrivals will see growth of c.5% in 2017. All European destination markets are predicted to see gains

Top tax free nationalities sales growth 2017 (%)

Growth non-EU arrivals to EU countries 2017 (%)

(1)

(1)

Source: Premier Vision Annual Review 2016/2017 (data from Oxford Economics)

(1)

13

Hammerson 2016 Premium Outlets operational metrics

Operational summary

Brand sales (€m)

(2)

Brand sales growth (%) Footfall (millions)

Value Retail

(3)

(2)

Average spend per visit (€)(2) Average sales densities (€000/m2) Average sales densities growth (%) Occupancy (%)

(1) (2) (3) (4)

(4)

VIA Outlets

(1)

(1)

Year ended 31 Dec 2016

Year ended 31 Dec 2015

Year ended 31 Dec 2016

Year ended 31 Dec 2015

2,562

2,380

437

374

8

11

7

10

34.6

33.3

12.7

10.2

74

71

34

37

15.1

14.3

3.9

3.3

6

8

19

6

96

96

92

87

Figures reflect overall portfolio performance, not Hammerson’s ownership share and 2015 figures have been restated at 2016 exchange rates 2016 VIA Outlets figures include Festival Park since July 2016. VIA Outlets figures six months of Festival Park sales for both 2016 and 2015 Average sales densities have been calculated as a weighted average based on the average occupied GLA. Festival Park has been excluded for both 2016 and 2015 due to information being unavailable.

14

Hammerson’s total investment in Value Retail: 40%

(1)

Hammerson is the second largest shareholder in holding company after management. Largest owner of VR as a whole. Other shareholders include APG, SPG, private investors (family and friends)

Holding companies 25% equity

Hammerson €2m(2) shareholder loan

Bicester Village

La Roca Village

Las Rozas Village

La Vallée Village

Maasmechelen Village

Fidenza Village

Wertheim Village

Ingolstadt Village

Kildare Village

33

23

19

11

13

20

31

0

27

46

36

32

23

26

33

VR ownership

(1)

GAV Participative loans

(3)

GAV plus participative loans

Village ownership via LPs (%)

Other assets Total liabilities

Total Village ownership (%)

Investment in associate excl. goodwill

(1) (2) (3)

Hammerson’s share of Value Retail’s net assets, excluding goodwill Excludes €23m loans secured against Fidenza Largely represent the economic interests in Spanish Villages, structured as loans rather than equity

44

12

40

Hammerson share (£m)

Value Retail 100% £m

%

1,387.3

4,095.9

34

113.7

0

100

1,501.0

4,095.9

37%

113.9

404

28%

(732.8)

(2,308.0)

32%

882.1

2,191.9

40%

15

Hammerson accounting treatment for premium outlets Due to the nature of control over these externally managed investments, Value Retail is accounted for as an associate and VIA Outlets is accounted for as a joint venture Value Retail: share of results of associates (2016 annual report & accounts) – Note 13

16

Hammerson accounting treatment for premium outlets VIA Outlets: investment in joint venture (2016 annual report & accounts) – Note 12

17

Summary tables: Value Retail and VIA – Tables 12 & 13

(a)

(b)

(e) (c)

(e) (d) (c)

(a) IFRS profit of Hammerson proportional share of VR and VIA, as per notes 12 and 13 of 2016 annual report & accounts. (b) Other adjustments include £16.6m revaluation gains of Hammerson’s investor stake in La Roca and Las Rozas Villages held through Participative Loans, £0.2m loan facility costs written off, £0.2m fx gain on intercompany funding loans and £0.1m loss on disposal of Excalibur. (c) As at 31 Dec 2016 Group had provided loans of £21.6m to Value Retail - of which £19.9m (€23.3m) was to VR Milan SRL, secured on Fidenza Village, and £1.7m (€2.0m) was a working capital facility to Value Retail European Holdings BV - for which the Group received interest of £4.2m in 2016 which is included within finance income. These loans were cancelled in 2017 in order to part fund a VIA Outlets acquisition and simplify the investment structure. (d) Hammerson’s investment in VR China was sold in 2016 (proceeds <$10m) in order to simplify the investment structure. (e) Premium Outlets earnings feed into the group P&L and investment to group balance sheet 18