Altarea

Earnings Release • Jul 30, 2015

DISCLAIMER

• This presentation has been prepared for general information purposes only, as a complement to the informations already released by Altarea Cogedim, which the lectors are kindly invited to refer to. It does not constitute an offer to sell or a solicitation of an offer to sell or exchange securities, nor does it represent a recommendation to subscribe to or sell Altarea Cogedim securities.
• The distribution of this document in some countries may be restricted by law or regulation. As such, persons into whose possession this presentation may come are obliged to inform themselves of and to observe any such restrictions. To the extent permitted by applicable law, Altarea Cogedim disclaims any responsibility or liability for the violation of any such restrictions by any person.

CONTENTS

INTRODUCTION	P. 4
2015 HALF-YEAR ACHIEVEMENTS	P. 7
FINANCE		P. 16
CONCLUSION		P. 23
APPENDICES		P. 27

3

INTRODUCTION

HALF-YEAR ACHIEVEMENTS

RETAIL	 Portfolio turnover  Strengthened leadership in rail station retail (bid for Paris-Austerlitz)  Good operational peformance
RESIDENTIAL	 Strong sales growth (26% in volume, 20% in value terms)  Agreement with SNI (~500 units under agreement and ~800 units under negotiation at the end of July)  Return to profit growth
OFFICES	 Extremely dynamic activity with €233 million investments (+83%)  Strategy in line with the market
	 Very significant improvement in financing structure

2015 HALF-YEAR FINANCIAL RESULTS RETURN TO GROWTH

		Real estate income	(1)	Consolidated income	(2)
	Revenue	€600.5 mil.	+24.5%	€724.7 mil.	+19.5%
RESULTS	Operating income	€116.9 mil.	+7.5%	€104.8 mil.	+2.9%
	Consolidated FFO (3)	€100 mil.	+11.3%	€89.8 mil.	+7.3%
	FFO Group share	€77.5 mil.	+11.1%	€67.3 mil.	+5.8%
	FFO per share after dilution	€6.22/share	+3.9%	€5.40/share	-1.0%
	Going-Concern NAV (4)			€1,583.4 mil.	-2.5%
NAV	NAV per share			€126.5/share	-2.5%
	(5) Consolidated equity			€2.2 bil.
BALANCE	LTV			41.1%
SHEET	Duration of debt			6.3 years
	Average cost			2.15%

(1) Results of Shopping centers, Residential, Office and other corporate business lines.

(2) Including results of Rue du Commerce.

(3) Net income at 100%, excl. changes in value, estimated expenses, transaction costs, and changes in deferred tax.

(4) Going concern NAV: Market value of equity from the perspective of operations as a going concern / EPRA NAV: €120,0/share (-8.2%) / EPRA NNNAV (liquidation NAV): €120.9/share (-2.9%).

(5) Group share and other.

2015 HALF-YEAR ACHIEVEMENTS

SHOPPING CENTERS PORTFOLIO ROTATION

• Continuation of the strategy of concentrating on premium assets
• Disposal of non-core assets

QWARTZ ACQUISITION OPENINGS DISPOSALS IN ITALY

Northwest Paris / 165 shops 925,500 ft² (86,000 m²) / 1st regional connected shopping center

Successful launch since the Grand Opening in April 2014 (Digital Factory) (1)

100% acquisition (2) (valuation ~€400 million)

Marque Avenue®, Aubergenville: In addition to the existing center 138,850 ft² (12,900 m²) / 61 shops

Jas-de-Bouffan, Aix-en-Provence: Renovation / extension 127,000 ft² (11,800 m²) / 69 shops

Acquirer: Tristan Capital Partners

Price: €122 million for the 4 assets

(1) At June 30, 2015, Qwartz recorded a 11% increase in footfall and a 10% rise in tenant revenue, excluding opening impacts. (2) Qwartz was developed and previously owned through a 50/50 joint venture with Orion.

RAIL STATION RETAIL LEADERSHIP IN TRAFFIC RETAIL

• Confirmed expertise

• Return per m² among the highest in France

• Large-scale modernization project (60 million travelers forecast compared to 22 million today)

• Creation and operation of the retail spaces (~ 325,000 ft², ~30,000 m²)
• Bid won thanks to the Group's differentiating concept of "connected traffic retail"

PARIS-AUSTERLITZ: 4th BID WON LEADER IN RAIL STATION RETAIL IN PARIS

300 million travelers / year (ultimately ~450 million) Gross rental income expected to reach ~€55 million

SHOPPING CENTERS A CONCENTRATED PORTFOLIO

• Objectives set in 2010 have been achieved
• Good performance of the main operational indicators

(1) Like-for-like revenue development for shopping center tenants over the first six months of the year, in France.

(2) Calculated as rent and expenses charged to tenants (incl. taxes) in H1 2015 (including rent reductions), in proportion to revenue over the same period (incl. taxes) at 100% in France. Excluding property being redeveloped.

(3) Net amount of allocations to and reversals of provisions for bad debt plus any write-offs during the period as a percentage of total rent and expenses charged to tenants, at 100 % in France. Excluding property being redeveloped.

• (4) France and International.
• (5) Excluding impact of commissioning, acquisitions, divestitures and restructurings.

PROPERTY DEVELOPMENT STRONG RECOVERY IN ALL SECTORS

• Property development as a driver of value creation
• Leveraging on the Group's multi-product offering to initiate major mixed-use programs (fast growing segment)

GROWTH IN RESERVATIONS AND NEW ORDERS				MAJOR MIXED-USE PROGRAMS
	Reservations (1)	New orders (2)
Volume	2,717 units (+26%)	5 programs
Value	€641 million (+20%)	€233 million (+83%)	€874 million (+32%)	BEZONS – CŒUR DE VILLE 700 units 215,250 ft² (20,000 m²) of retail spaces	VILLEURBANNE – LA SOIE 600 units 43,000 ft² (4,000 m²) of retail 200,000 ft² (18,500 m²) of offices

(1) Reservations in number of units, consolidated method, except for jointly controlled operations, which are recognized in proportion to the interest held. Histoire & Patrimoine reservations are recognized at 55%.

(2) H1 new orders: Lyon – Sanofi, Marseille – Michelet, Massy – Cinema, Marseille – Euromed Center Ph. 1, Paris – Rue des Archives.

• An offering specially designed for institutional investors
• A successfull strategy initiated few years ago for the major players (insurance companies, pension funds, etc.)

(1) Reservations as number of units, consolidated method, except for jointly controlled operations, which are recognized in proportion to the interest held. Histoire & Patrimoine reservations are recognized at 55%.

• Increased revenue driven by entry-level and midscale ranges (1)
• Growth in operating cash flow due to volumes

(1) Programs priced at under €5,000/m² in the Paris Region and under €3,600/m² outside of Paris.

(2) The backlog comprises revenues excluding tax from notarized sales to be recognized on a percentage-of-completion basis and individual and block reservations to be notarized.

(3) Properties for sale include units available for sale and are expressed as values including tax. The breakdown of the offering does not include the Histoire & Patrimoine renovation product offering (€22 million including tax). The future offering is made up of secured programs (through sales commitments, almost exclusively unilateral in nature) that have yet to be launched. It is expressed as values including tax.

• H1 new orders: €233 million (+83%) on 5 programs (1)

Acquisition of the Pascal Towers

683,500 ft² (63,500 m²)

Major renovation

An AltaFund (2) project via a 50/50 joint venture with Goldman Sachs

Signature of an OPL with Capgemini for Ivoire Tower (Lyon Gerland)

Off-plan sale in late July + signature of a PDC with the Group

81,250 ft² (7,550 m²) 3 rd program in Lyon Gerland

Delivery in mid-2016

Sale of the head offices of Sanofi Pasteur and Merial (Lyon) to Predica

162,500 ft² (15,100 m²)

Real estate complex made up of 4 HQE buildings currently being built

Delivery in early 2017

(1) H1 new orders: Lyon Sanofi, Marseille Michelet, Massy Cinema, Marseille Euromed Center Ph. 1, Paris Rue des Archives.

(2) AltaFund is a discretionary investment fund with €650 million in equity. The Group is the fund's exclusive operator and one of its main shareholders, holding an interest of 17% on projects carried out before 2015 and 30% on projects carried out as from 2015 (including Tours Pascal).

• Stable H1 results not representive the 2015 trends

TOULOUSE BLAGNAC

Tenant: Safran (regional head office spanning 269,000 ft² or 25,000 m²)

Investor: Predica (property development contract signed with the Group)

Construction launch: Q3 2014 Delivery: End-2015

(1) Mainly Altafund

RESULTS

Net property income (property development)	€6.6 mil.
Fees (service provider)	€8.7 mil.
Share of equity method Associates (1) (investment)	€1 mil.
Total Revenue	€16.3 mil.	+15%
Operating cash flow	€8.5 mil.	-1%

2015 HALF-YEAR RESULTS 15

• Rising income
• Per share indicators do not reflect yet the recovery recorded at the operational level
• Very significant improvement of the debt structure

RESULTS			INDICATORS PER-SHARE			DEBT RE-PROFILING
Real estate operating profit (1)	€116.9 mil.	+7.5%	Real estate FFO (1)	€6.22/s.	+3.9%	 €1.4 billion in financing signed
Consolidated operating profit (2)	€104.8 mil.	+2.9%	Consolidated FFO(2)	€5.40/s.	-1.0%	 Duration increased to 6.3 years
Real estate FFO (1)	€100 mil.	+11.3%	(3) NAV	€126.5/s.	-2.5%	 Extension of rate hedges
(2) Consolidated FFO	€89.8 mil.	+7.3%

(1) Operating profit of shopping center, residential, office and other corporate business lines.

(2) Including contribution of Rue du Commerce.

(3) Going concern NAV: Market value of equity from the perspective of operations as a going concern / EPRA NAV: €120,0/share (-8.2%) / EPRA NNNAV (liquidation NAV): €120.9/share (-2,9%).

• Renewed growth of real estate activities
• Negative contribution of the e-commerce business line

REVENUE				OPERATING PROFIT
Shopping centers	€96.8 mil.	+2%		Shopping centers	€82.7 mil.
Residential	€450.8 mil.	+22%		Residential	€24.5 mil.
Offices	€52.9 mil.	+170%		Offices	€8.5 mil.
Real estate revenue (1)	€600.5 mil.	+24.5%
				% revenue
Consolidated revenue (2)	€724.7 mil.	+19.5%
				% revenue

Shopping centers	€82.7 mil.
Residential	€24.5 mil.
Offices	€8.5 mil.
Real estate operating profit (1)	€116.9 mil.	+7.5%
% revenue	19.5%
Consolidated operating profit (2)	€104.8 mil.	+2.9%
% revenue	14.5%

(1) Operating profit of shopping center, residential, office and other corporate business lines. (2) Including contribution of Rue du Commerce.

• Double-digit increase in the real estate FFO
• Adjustment of the RDC value

(1) 2014 data restated for the effect of application of interpretation IFRIC 21 – Levies. As this interpretation is applied retroactively, the financial statements presented herein for the purpose of comparison have been restated (slight impact).

(2) Operating profit of shopping center, residential, office and other corporate business lines.

(3) Deferred tax, income from disposals and estimated expenses and adjustment of the RDC value.

• Per share indicators do not reflect yet the growth recorded at the operational level
• 8.5% FFO/NAV ratio

(1) FY2013 dividend payout in shares, creation of 922,692 new shares at €108.3/share.

(2) Going concern NAV: market value of equity from the perspective of operations as a going concern / EPRA NAV: €120.0/share (-8.2%) / EPRA NNNAV (liquidation NAV): €120.9/share (-2.9%). The diluted NAV and NAV continuation liquidation NNNAV includes the market value of the financial instruments (net increase) contrary to the EPRA NAV. Hence, the decrease in EPRA NAV is more important than the continuation diluted NAV and NAV liquidation NNNAV

(3) Other changes in value: Other unrealized capital gains, fixed-rate market value of debt, taxes, transfer duties and partners' share.

20

• The Group sized a of very favorable market window to reprofile its debt structure

IMPORTANT RESULTS ACHIEVED NEW HEDGING PROFILE (2)

• €1.4 billion of new financing (1):
• ‒ 20 assets financed / refinanced (mostly with mortgages)
• ‒ Average Duration: 8.4 years

• ‒ Average Spread: 112 bps

• Long duration, reduced cost

• Long-term visibility
• Very solid debt ratio

COST OVER THE NEXT 6 YEARS	A VERY SOLID FINANCING STRUCTURE
	Net debt	€2.042 mil. +€270 mil.
 Average spread for the existing debt: ~100 / 140 bps  Hedged nominal: ~ 75% to 50%  Hedging rate: ~1.04%	Duration	6.3 years
	Average cost	2.15%
	LTV (1)	41.1%
	ICR (2)	7.5 x

Cash and cash equivalents €539 mil.

• Creation of a structure dedicated to innovation: AltaFuture

• Assertion of Altarea's leadership as a Connected Retail REIT

• (1) Through the Group's many channels: Wi-Fi and geolocation, loyalty programs, shopping center websites and applications, social networks, "Opt-in" data base, etc.

• (2) Using a system dedicated to data processing (Data Management Platform or "DMP").
• (3) In order to use the information gathered (automatic data analysis, reporting, etc.) and establish targeted action plans.

• (4) The Qwartz shopping center opened in April 2014. At June 30, 2015, it recorded a 11% increase in footfall and a 10% rise in tenant revenue, excluding opening impacts.

• Through its multi-product offer, the expertise of its teams and its cross- organization, Altarea Cogedim has been able to build a unique pipeline projects by its size and quality

• This pipeline founds the Group perspectives for the long-term

Group's consolidated pipeline
Number of projects and units (1)	13 -	- 22,300	25 -	38 22,300 units
Surface areas (m²) (2)	490,000	1,285,000	523,000	23.7 million ft² (2.3 million m²) (+4.2%)
Investment Return	(3) €2.2 bil. 8.2%	-	-	-
Potential value (4)	€3.3 bil.	€5.3 bil.	(5) €1.8 bil.	€10.5 bil. (+7.6%)

(1) Number of development projects for Shopping centers, Ground-floor shops and Offices, and number of units for residential property.

(2) Retail: m² GLA created. Residential: Inhabitable surface area. Office property: Net floor area or useful surface area. Charge calculated vs. 12/31//2014

(3) Investment amounts at 100% (€1.7 billion on a Group share basis)

(4) Value of Shopping centers: rental income at 100% capitalized at 5.5% / Neighborhood shops valuated: €2,500/m² / Residential property value: properties for sale + portfolio assets (i.e. excluding programs under construction) / Office property value: Off-plan/property development contracts: Share of contract amounts, Delegated project management: Share of capitalized fees, AltaFund: cost price at 100%. Charge calculated vs. 12/31/2014

(5) O/w €660 million as Investor/AltaFund (total cost price of the program at 100%), €1.12 billion as Property developer (amount of signed contract) and €60 million as Service provider (capitalized fees).

Significant growth in 2015 income

2016 dividend > €10.00

DETAILED INCOME STATEMENT

€ millions	Funds from operations (FFO)		6/30/2015 Change in value, estimated expenses and transaction costs	TOTAL	Funds from operations (FFO)	(1) 6/30/2014 Change in value, estimated expenses and transaction costs	TOTAL
Shopping centers	96.8	2%	-	96.8	94.6	-	94.6
Online retail	124.2	(0)%	-	124.2	124.3	-	124.3
Residential	450.8	22%	-	450.8	368.3	-	368.3
Offices	52.9	170%	-	52.9	19.6	-	19.6
REVENUE	724.7	19%		724.7	606.7		606.7
Shopping centers	82.7	(2.0)%	32.3	115.0	84.4	(27.8)	56.4
Online retail	(12.1)	77.0%	(33.6)	(45.7)	(6.8)	(0.5)	(7.3)
Residential	24.5	51.9%	(1.5)	23.0	16.1	(2.7)	13.4
Offices	8.5	(0.7)%	(0.3)	8.2	8.6	2.5	11.1
Other	1.1	-	(2.4)	(1.3)	(0.5)	(3.5)	(4.0)
OPERATING INCOME	104.8	2.9%	(5.5)	99.3	101.8	(31.9)	69.9
Net borrowing costs	(14.0)	(14.8)%	(3.0)	(17.0)	(16.5)	(2.7)	(19.2)
Change in value and income from disposal of financial instruments	-	-	(0.2)	(0.2)	-	(44.5)	(44.5)
Proceeds from the disposal of investments	-	-	7.8	-	-	(0.0)	(0.0)
Corporate income tax	(1.0)	-	(3.3)	(4.3)	(1.7)	82.5	80.8
NET PROFIT	89.8	7.3%	(12.0)	77.8	83.7	3.4	87.1
O/w Net profit (Group share)	67.3	5.8%	(14.3)	53.0	63.6	2.2	65.7
Average number of shares after dilution (in millions)	12.452				11.645
FFO ATTRIBUTABLE TO THE GROUP PER SHARE	€5.40	(1.0)%			€5.46

(1) 2014 data restated for the effect of application of interpretation IFRIC 21 – Levies. As this interpretation applies retroactively, the financial statements presented herein for the purpose of comparison have been restated.

DETAILED BALANCE SHEET (1/2)

€ millions	6/30/2015	12/31/2014
NON-CURRENT ASSETS	4,239.1	3,940.6
Intangible assets	233.5	244.7
o/w Goodwill	128.7	128.7
o/w Brands	95.9	96.8
o/w Other intangible assets	8.9	19.2
Property, plant and equipment	9.8	10.6
Investment properties	3,532.5	3,163.6
o/w investment properties measured at fair value	3,288.7	2,974.4
o/w investment properties measured at cost	243.8	189.2
Securities and investments in equity affiliates and unconsolidated interests	299.3	362.0
Receivable and other short-term investments	43.3	43.3
Deferred tax assets	120.7	116.4
CURRENT ASSETS	1,476.8	1,406.4
Non-current assets held for sale	1.7	0.7
Net inventories and work in progress	572.1	617.9
Trade and other receivables	498.6	392.5
Income tax credit	5.8	6.3
Receivables and other short-term investments	26.3	15.2
Derivative financial instruments	26.0	15.9
Cash and cash equivalents	346.4	358.0
TOTAL ASSETS	5,715.9	5,347.0

DETAILED BALANCE SHEET (2/2)

€ millions	6/30/2015	12/31/2014
EQUITY	2,155.6	2,169.2
Equity attributable to Altarea SCA shareholders	1, 180.0	1,249.5
Capital	191.2	191.2
Other paid-in capital	396.8	518.7
Reserves	538.9	425.2
Income associated with Altarea SCA shareholders	53.0	114.3
Equity attributable to minority shareholders of subsidiaries	975.7	919.8
Reserves associated with minority shareholders of subsidiaries	755.8	579.1
Other equity components, subordinated perpetual notes	195.1	195.1
Income associated with minority shareholders of subsidiaries	24.9	145.6
NON-CURRENT LIABILITIES	2,169.9	1,849.8
Non-current borrowings and financial liabilities	2,098.3	1,795.1
o/w Participating loans and advances from associates	54.9	50.8
o/w Bond issues	477.5	477.2
o/w Borrowings from lending establishments	1,565.8	1,267.1
Long-term provisions	36.3	21.3
Deposits and security interests received	28.6	26.2
Deferred tax liability	6.7	7.4
CURRENT LIABILITIES	1,390.4	1,327.1
Current borrowings and financial liabilities	394.3	448.3
o/w bond issues	4.2	4.3
o/w Borrowings from credit institutions (excluding overdrafts)	262.7	326.5
o/w Treasury notes	61.5	53.0
o/w bank overdrafts	16.5	2.1
o/w advances from the Group and associates	49.4	62.3
Derivative financial instruments	46.7	102.7
Accounts payable and other operating liabilities	805.9	757.4
Tax due	18.0	18.7
Amount due to shareholders	125.4	0.0
TOTAL LIABILITIES	5,715.9	5,347.0

NET ASSET VALUE

GROUP NAV	6/30/2015				12/31/2014 published
	€ millions	Change	€/share	Change/ share	€ millions	€/share
Consolidated equity, Group share	1,180.0		94.3		1,249.5	99.9
Other unrealized capital gains	281.8				276.8
Restatement of financial instruments	22.2				87.8
Deferred tax on the balance sheet for non-SIIC assets (international assets)	18.0				22.4
Provisions Italy	-				-
EPRA NAV	1,502.0	(8.2)%	120.0	(8.2)%	1,636.5	130.8
Market value of financial instruments	(22,2)				(87.8)
Fixed-rate market value of debt	(11.6)				(13.1)
Effective tax for unrealized capital gains on non-SIIC assets*	(6.6)				(17.6)
Optimization of transfer duties*	65.7				55.6
Partners' share**	(14.5)				(14.9)
EPRA NNNAV (liquidation NAV)	1,512.8	(2.1)%	121.9	(2.1)%	1,558.6	124.6
Estimated transfer duties and selling fees	71.3				65.9
Partners' share**	(0.7)				(0.6)
Diluted Going Concern NAV	1,583.4	(2.5)%	126.5	(2.5)%	1,623.9	129.8
* Varies according to the type of disposal, i.e. sale of asset or sale of shares.

** Maximum dilution of 120,000 shares.

*** Number of diluted shares 12,513,394 12,512,638