BUSINESS FOR THE YEAR Business activity by region 2 2.1.6.2 Lease expiry schedule 3 SHOPPING CENTER LEASE EXPIRY SCHEDULE Average lease Country/Area ≤2017 2018 2019 2020 2021 2022 2023 2024 2025+ Total length left France 13.5% 5.3% 7.7% 7.8% 10.0% 11.6% 10.8% 7.5% 25.8% 100.0% 4.7 Belgium 0.0% 2.0% 9.8% 1.1% 1.1% 3.2% 58.2% 5.8% 18.7% 100.0% 5.6 France-Belgium 13.0% 5.2% 7.8% 7.5% 9.6% 11.3% 12.7% 7.4% 25.5% 100.0% 4.7 Italy 8.6% 10.4% 14.5% 11.8% 12.9% 13.1% 7.2% 3.9% 17.5% 100.0% 4.1 Denmark* Norway 1.9% 21.5% 21.1% 12.9% 13.1% 10.0% 5.9% 3.8% 9.7% 100.0% 3.3 Sweden 3.1% 18.7% 23.0% 18.1% 11.7% 14.0% 1.8% 2.2% 7.4% 100.0% 2.8 Scandinavia 2.4% 20.4% 21.9% 15.0% 12.5% 11.7% 4.2% 3.2% 8.8% 100.0% 3.1 Spain 0.0% 6.3% 8.5% 7.3% 10.1% 9.4% 11.6% 8.0% 38.8% 100.0% 7.0 Portugal 0.5% 5.3% 6.6% 8.0% 15.5% 12.2% 16.4% 5.8% 29.7% 100.0% 6.0 Iberia 0.1% 6.1% 8.1% 7.5% 11.3% 10.0% 12.7% 7.5% 36.8% 100.0% 6.8 Poland 2.1% 10.4% 11.9% 25.0% 14.7% 18.8% 3.8% 0.9% 12.3% 100.0% 3.2 Hungary 0.8% 21.5% 16.5% 22.5% 14.9% 14.2% 2.6% 2.1% 5.0% 100.0% 3.0 Czech Republic 0.9% 18.2% 10.3% 9.5% 18.7% 25.3% 7.2% 3.1% 6.9% 100.0% 3.6 Turkey 6.5% 27.0% 9.7% 10.1% 10.5% 14.5% 8.8% 2.7% 10.3% 100.0% 3.2 CEE and Turkey 2.8% 19.3% 11.6% 16.0% 14.6% 18.5% 6.0% 2.2% 9.0% 100.0% 3.3 The Netherlands 2.5% 20.8% 11.1% 2.2% 6.4% 5.1% 7.6% 6.5% 37.8% 100.0% 5.6 Germany 0.0% 10.3% 11.0% 1.1% 8.8% 34.0% 10.4% 5.2% 19.2% 100.0% 5.2 TOTAL 7.5% 10.3% 11.5% 9.6% 11.2% 13.0% 9.6% 5.5% 21.7% 100.0% 4.5 * Under Danish law, lease contracts are open-ended. 2.2 Business activity by region 2.2.1 France-Belgium (35.7% of net rental income) 3 NRI & EPRA VACANCY RATE IN FRANCE-BELGIUM Current-porfolio NRI Like-for-like portfolio NRI EPRA vacancy rate In €m 12/31/2017 12/31/2016 Change 12/31/2017 12/31/2016 Change 12/31/2017 12/31/2016 France 378.0 372.4 1.5% 370.4 362.2 2.3% 3.5% 3.3% Belgium 16.8 15.7 7.5% 16.8 15.7 7.5% 0.2% 0.5% FRANCE-BELGIUM 394.9 388.0 1.8% 387.2 377.9 2.5% 3.3% 3.2% Economic growth in France was robust in 2017, with GDP increasing Entertainment and fashion were the best performing segments, by 1.8%, which marks a significant acceleration compared to 2016 growing by 9.0% and 4.6%, respectively, over the last 12 months. Food (+1.1%), on the back of strong private consumption, robust business & beverage (+1.5%), culture & leisure (+1.5%), and health & beauty confidence, and an improved labor market (unemployment dropped (0.8%) recorded good results, while the household equipment segment to 9.4% from 10.1% in 2016). was slightly lagging (-0.6%). In 2017, Klépierre’s retailer sales were up by 2.4% on a like-for-like Net rental income increased by 2.5% on a like-for-like basis over basis (+0.9% excluding the extension of Val d’Europe), corroborating 2017, outperforming indexation by 240 basis points. This performance the improved consumption environment in France (+0.2% in 2016). For derived from the recent leasing actions and the positive reversion, the first 11 months of 2017, retailer sales at Klépierre malls outpaced especially at Val d’Europe and Saint-Lazare (Paris), where the Group (1) the national index by 370 basis points , compared to a 150 basis- benefited from the first renewal campaign (see below), capturing the point outperformance in 2016. In the last quarter, retailer sales were remarkable success of the shopping center since opening. Additionally, particularly strong, boosted by the successful Black Friday campaign the recent renegotiation of the Clear Channel contract generated (+19% over three days). higher revenues and lower operating costs through procurement Sales at Val d’Europe (Paris) posted a 19% increase, benefiting from initiatives, which also contributed to the solid like-for-like growth. its extension (opened in April 2017) and the inauguration of Primark (in September 2017). (1) The CNCC index was down 1.1% for the first 11 months of 2017, year-on-year. KLÉPIERRE 2017 REGISTRATION DOCUMENT 47