Altarea

Investor Presentation • Aug 6, 2020

2020 half-year results

6 August 2020

This presentation has been prepared for information purposes only, and is intended to supplement other information published by Altarea, to which readers are encouraged to refer. It is not, and must not be interpreted as a solicitation, recommendation or offer to purchase, sell, exchange or subscribe for Altarea securities or financial instruments.

Circulation of this document may be restricted in certain countries by law or regulations. Therefore, readers in possession of this presentation must make their own enquiries and adhere to these restrictions. Within the limits permitted by applicable law, Altarea Cogedim accepts no liability or commitment in the event of failure by any person to obey these restrictions.

This presentation is accompanied by a press release, the business review and the consolidated financial statements, available for download on the Finance page of Altarea's site, altarea.com, heading finance.

Half-year results: a successful end of lockdown

Acceleration in Residential as lockdown ends

Quick resumption of work on the 300 building sites CDC Habitat agreements Notarised sales doubled vs. 2019

Situation is stabilising in Retail

Providing support for retailers Adjustment of asset values Ongoing normalisation of activity

A resilient model

Diversified business mix Strong corporate culture Exemplary team mobilisation

1.OPERATIONAL PERFORMANCE

Residential: strong step-up in activity as the lockdown ends

Cycle almost fully interrupted during the lockdown

Halt of 300 building sites for two months

Closure of notary offices

Lower commercialisation (30% of regular level)¹

Remote work

Business resumption actively managed

Resumption of work on building sites in early May Return to a close to normal pace in June

CDC Habitat agreements

Actively managed notarised sales campaign

Progressive return to on-site work on May 11 and 100% on-site as the Group moved in its new headquarters

Outstanding results despite the current situation

New orders €1,921 m (+30%)

Notarised sales €1,883 m (+94%) +23% excl. CDC Habitat

Revenue €1,074 (+19.5%)

Revenue acceleration Margin preserved in volume Reduced debt

New orders: €1,921 m (+30%), ie. 6,667 units (+25%) Strong appetite from institutional investors supplanting individuals

Sales to individual investors 36% vs. 74% in 2019 €692 m 2,184 units Sales to institutional investors 64% vs. 26% in 2019 €1,228 m 4,483 units CDC Habitat agreement €825 m excl. VAT 3,500 units "Building permit delivered" for most units Intentional choice to sell available units quickly Steady margins in volume

Growth in Residential revenue (+19.5%) An outstanding achievement

Thanks to a remarkable mobilisation as the lockdown ended, Altarea has succeeded in doubling the number of notarised sales vs. 2019 €1,883 m vs. €1,074 m

This campaign resulted in a record level of collections¹

Sales completion rate have thus more than offset the delays in technical completion due to the lockdown

Potential remains strong: increase in backlog and pipeline

Retail: support tenants' recovery

Significant impact of the lockdown

Partial activity during 2 months

Essential services shops < 6% of rents

Successful resumption

Quick resumption of footfall and tenants' revenues

Figures slightly below 2019 levels (outperformance of Retail Parks)

The mutation of Retail

Increase in insolvency procedures resulting from Covid-19

Ready-to-wear to be reinvented

Support to retailers

Waive of rent for VSE and for shops in railway stations

Lease renegotiation (adjustments for 2020, extension & compensation)

Q2 rent invoicing: €63.9 m (€39.1 m in GS) A greater clarity

Ongoing negotiation on deferred rents

Rent waiver option Extension of contractual duration of leases Revised rental valuation A positive approach from retailers

Net rents: -€11.2 m impact recognised in interim results

Rents recognition

Unrecoverable and waived¹ rents recognised in expense in the financial statements as of 30th June Impact: -€11.2 m (€7.9 m in Group share)

Impact of tenants negotiations will be spread over the duration of the renegotiated leases (€3 to 4 m/year)

Portfolio value adjustment: -€117 m in Group share

Value adjustment: -3,8% in a l-f-l basis

An effect mainly due to yield increase (+10 bps to 5.16%)

Retail: operating KPIs show early signs of recovery

Overall, retailers' revenues are slightly below 2019 levels

Revenue generated per activity vs. June 2019	%
Food, restaurants	67%
Beauty, Health	95%
Culture, glfts, leisure	99%
Entertainment	39%
Equipment	82%
Home equipment	139%
Large shopping centers and retail stores	94%
Services	24%

Business Property: business resumption

Delays due to the halt of building sites

Delivery of Orange's future headquarters in Issy-les-Moulineaux postponed to 2021

A more vivid recovery in regional areas

Agreement signed with Unedic in Marseille and delivery of Enedis' headquarters in Limoges

Many discussions underway

A substantial pipeline with limited risk

67 projects €5.1 bn in potential value but limited risk exposure in Group share < €100 m¹

Delivery of Richelieu, Group's new headquarters

Richelieu: a new headquarters located in the heart of Paris Embodiment of Altarea's corporate culture

Exceptional quality of life in the workplace

Inspired from Residential standards

Terraces, catering, hyperconnectivity and services

« a better place than home »

2. FINANCIAL PERFORMANCE

Key figures as of 30 June 2020

Group share FFO: €118.2 m (+7.2%)

Retail -€11.2 m impact on net rents in financial statements

Residential Revenue growth Decrease in the average margin rate (-1.5 bps to 8.3%)

Business property Delivery of Richelieu

Effective management of overhead costs

Tax rate increase

FFO/share: €7.05 (+2.6%)

Going concern NAV: €163.1 €/share (-2.7% vs. 31/12/2019 excl. dividend)

-2.7% (-2.0% vs. 30/06/19)

Net debt decreased to €2,372 m (-€103.3 m)

In €m

Retail (Cap3000, Paris-Montparnasse train station…) Closing of the Italian deals Successful regularisation campaign in Residential Property development WCR represents 22% of the Revenue

Swap termination due to increasing amount of fixed-rate debt and decreasing of floating-rate debt

(-10 points)

Enhanced liquidity and capital increase resulting in strong ratios

3. OUTLOOK

Altarea is ready to tackle the crisis

An unprecedented crisis in terms of essence and magnitude

Deterioration of the macroeconomic situation

Priority given to liquidity

Risk mitigation

Manoeuvrability

Altarea stands by its convictions

Tremendous needs are forevermore calling for urban transformation

Ecological urgency Low carbon cities, inclusive cities Urban transformation, a complex business Platform of real estate expertise covering all asset classes Support Cities in their transformation New ways of experiencing cities Living, working, consuming and commuting

Carrying forward risk management policy, in line with the first semester of 2020

FFO expected for the 2nd semester of 2020 should be around the same levels as for the 1st semester

taking into account the postponed deliveries in business property, the consequences arising from delayed municipal elections and the progressive increase in tax burden

Resumption of FFO growth expected in 2021

(provided that the health situation will stabilise)

4. GLOSSARY AND APPENDICES

Glossary

• Appraisal value – Retail: Value of portfolio assets including transfer duties (at 100% or Group Share).
• Average total cost of the debt: Average total cost including related fees (commitment fees, CNU, etc.).
• Cash available: Cash and cash equivalents + undrawn revolving credit lines commercial paper.
• Residential Development Backlog : Revenue (excl. tax) from notarised sales to be recognised on a percentage-of-completion basis and individual and block reservations to be notarised.
• Business property Development Backlog : Notarised sales not yet recognised on a percentage-of-completion basis, new orders not yet notarised (signed PDAs) and fees to be received from third parties on signed contracts.
• FFO (Funds From Operations): Operating income after the impact of the net borrowing costs, corporate income tax paid and minority interests, for all Group activities. Group share.
• Financial vacancy: Estimated rental value (ERV) of vacant units as a percentage of total estimated rental value. France and International.
• •Going Concern NAV (Net asset value): market value of equity with a view to continuing the business taking into account the potential dilution from its status as an SCA (partnership limited by shares). NAV = Going Concern NAV unless otherwise specified.
• •ICR (Interest-Coverage-Ratio): Operating income/Net borrowing costs ("Funds from operations" column).
• Liquidity: cash and cash-equivalent (marketable securities, certificates of deposit, credit balances) plus drawing rights on bank credits (RCF, authorisations, etc.).
• LTV (Loan to Value): Net bond and bank debt/Restated value of assets including transfer duties.
• •Net debt: Bond and bank debt, net of cash and cash equivalents
• •Net debt / EBITDA : Net bond and bank debt / FFO operating income.
• •Net rental income: The Group now reports net rents charged including the contribution to the marketing fund, the rebilling of work and investments as lessor.
• •New orders Business Property: New orders incl. VAT at 100%, with the exception of jointly controlled operations (equity accounted) for which new orders are shown in Group share.
• •New orders (reservations) Residential: New orders net of withdrawals at 100%, with the exception of jointly controlled operations (Group share). € incl. tax
• Pipeline (in potential value): Residential: Properties for sale + future offering including VAT. Business property: potential market value excluding duties at date of sale for investment projects (at 100%), excluding VAT on off-plan/PDC signed or estimated for other development projects (at 100% or pro rata for co-developments) and capitalised delegated management contracts.
• Tenant sales: Change in merchant sales on the basis of the period stated
• The exit rate (or "capitalisation rate") is used by appraisers to capitalise rents in the terminal period of their DCF models It reflects the fundamental medium to long term quality of assets

Income Statement

In € million	Retail	Residential	Business Property	Other (Corporate)	Funds from operations (FFO)	Changes in value, estimated expenses and transaction costs	TOTAL
Revenue	109.7	1 074.2	199.2	0.1	1,383.2	-	1,383.2
Change vs. 30/06/2019	-3.1%	+19.5%	-25.3%	n.a.			+8.1%
Net Rental Value	82.2	-	-	-	82.2	-	82.2
Net property income	0.4	88.7	10.4	-	99.5	(0.3)	99.2
External services	8.4	4.7	2.7	0.1	15.9	-	15.9
Revenus nets	91.0	93.4	13.1	0.1	197.6	(0.3)	197.3
Change vs. 30/06/2019	-12.4%	+0.0%	-47.5%	n.a.	-10.8%
Own work capitalised and production held in inventory	4.0	76.3	5.6	-	85.9	-	85.9
Operating expenses	(21.5)	(100.9)	(14.9)	(0.3)	(137.6)	(7.5)	(145.1)
Net overhead expenses	(17.5)	(24.6)	(9.3)	(0.3)	(51.7)	(7.5)	(59.2)
Share of equity-method affiliates	1.7	7.5	29.6	-	38.8	2.6	41.5
Income/loss on sale of assets Retail						(4.7)	(4.7)
Change in value, calculated expenses and transaction costs – Retail						(291.0)	(291.0)
Calculated expenses and transaction costs - Residential						(9.0)	(9.0)
Calculated expenses and transaction costs - Business Property						(0.9)	(0.9)
Other provisions Corporate						(3.9)	(3.9)
Operating income	75.3	76.3	33.5	(0.3)	184.7	(314.8)	(130.0)
Change vs. 30/06/2019	-15.0%	+36.2%	+17.9%	n.a.	+8.7%
Net borrowing costs	(14.0)	(5.9)	(3.2)	-	(23.2)	(4.1)	(27.2)
Gains/losses in the value of financial instruments	(2.2)	(0.3)	(0.3)	3.8	1.0	(4.2)	(3.2)
Proceeds from the disposal of investments	-	-	-	-	-	(49.1)	(49.1)
Semmaris dividend	-	-	-	-	-	(0.2)	(0.2)
Corporate income tax	(2.7)	(3.7)	(9.0)	-	(15.5)	(24.5)	(40.0)
Net income	56.4	66.3	20.9	3.5	147.1	(396.9)	(249.9)
Non-controlling interests	(18.8)	(10.2)	0.1	-	(28.9)	144.0	115.0
Net income, Group share	37.5	56.1	21.0	3.5	118.2	(253.0)	(134.8)
Change vs. 30/06/2019	-25.2%	+51.0	-19.2%	n.a.	+7.2%
Diluted average number of shares					16,767,148
Net income, Group share per share (in €)					7.05
Change vs. 30/06/2019					+2.6%

Net asset value (NAV)

NAV - GROUP	30/06/2019		30/06/2019		31/12/2019 Published
	In €m	Change	€/share Change	In €m	€/share		In €m	€/share
Consolidated equity, Group share	1,859.8	-13.3%	111.4 -13.3%	1,979.5	118.8		2,144.4	128.4
Other unrealised capital gains	692.8			661.5			701.5
Deferred tax on the balance sheet for non-SIIC assets (a)	21.5			29.7			40.3
Fixed-rate market value of debt	11.8			(37.9)			(63.4)
Effective tax for unrealised capital gains on non-SIIC assets (b)	(19.4)			(23.7)			(21.9)
Optimisation of transfer duties (b)	90.5			92.5			92.0
Partners' share (c)	(19.0)			(19.3)			(20.6)
NNNAV (NAV liquidation)	2,638.0	-8.2%	158.0	2,682.2	161.0		2,872.4	172.0
Estimated transfer duties and selling fees	86.8			92.8			80.8
Partners' share (c)
	(0.6)			(0.7)			(0.6)
Going concern NAV (fully diluted)	2,724.2	-7.7%	163.1 - 7.7%	2,774.3	166.5		2,952.5	176.8
Number of diluted shares:	16,700,762			16,660,596			16,700,762

(a) International assets.

(b) Depending on disposal structuring (asset deal or share deal).

(c) Maximum dilution of 120,000 shares.

Loan to Value

As of 30/06/2020	In €m
Gross debt	3,557
Cash and cash equivalents	(1,185)
Consolidated net debt	2,372
Shopping centres at value (FC) (a)	4,226
Shopping centres at value (FC) intended for sale	-
Shopping centres at value (EM affiliates' securities) (b)	214
Investment properties valued at cost (c)	263
Business Property investments (d)	377
Enterprise value of Property Development	1,984
Other (e)	38
Market value of assets	7,102

Ratio LTV 33.4%

• (a) Market value (including transfer taxes) of shopping centres in operation recognised according to the fully consolidated method.
• (b) Market value (including transfer taxes) of shares of equity-method affiliates carrying shopping centres and other retail assets.
• (c) Net book value of investment properties in development valued at cost.
• (d) Market value (including transfer taxes) of shares in companies consolidated using the equity method holding investments in Office Property and other Office Property assets.
• (e) Other investments

Detailed balance sheet (1/2)

In € million	30/06/2020	31/12/2019 restated
NON-CURRENT ASSETS	5,555.4	5,455.4
Intangible assets	333.0	331.4
o/w Goodwill	209.4	209.4
o/w Brands	105.4	105.4
o/w Client relations	0.3	0.6
o/w Other intangible assets	17.9	16.1
Property plant and equipment	22.3	20.9
Right-of-use asset on plant, property and equipment and intangible fixed assets	151.5	23.4
Investment properties	4,373.4	4 472.1
o/w Investment properties in operation at fair value	3,946.9	3 826.2
o/w Investment properties under development and under construction at cost	260.7	509.3
o/w Right-of-use asset on Investment properties	165.8	136.7
Securities and investments in equity affiliates and unconsolidated interests	609.5	532,1
Loans and receivables (non-current)	46.3	44,3
Deferred tax assets	19.5	31.2
CURRENT ASSETS	3,558.4	3,632.4
Net inventories and work in progress	849.2	1,064.5
Contract assets	606.6	564.9
Trade and other receivables	833.5	799.9
Income tax credit	4.9	9.4
Loans and receivables (current)	77.1	27.3
Derivative financial instruments	1.8	1.2
Cash and cash equivalents	1,185.2	830.2
Assets held for sale	0.0	335.0
TOTAL ASSETS	9,113.7	9,087.9

Detailed balance sheet (2/2)

in € million	30/06/2020	1 31/12/2019 restated
EQUITY	2,938.5	3,335.5
Equity attributable to Altarea SCA shareholders	1,859.8	2,144.4
Capital	255.2	255.2
Other paid -in capital	171.4	311.8
Reserves	1,568.0	1,343.8
Income associated with Altarea SCA shareholders	(134.8)	233.7
Equity attributable to minority shareholders of subsidiaries	1,078.7	1,191.1
Reserves associated with minority shareholders of subsidiaries	998.7	994.2
Other equity components, Subordinated Perpetual Notes	195.1	195.1
Income associated with minority shareholders of subsidiaries	(115.0)	1.8
NON -CURRENT LIABILITIES	2,539.3	2,823.7
Non -current borrowings and financial liabilities	2,414.0	2,708.5
o/w Participating loans and advances from associates	78.9	77.9
o/w Bond issues	1,384.9	1,613.5
o/w Borrowings from lending establishments	580.8	837.5
o/w Negociable European Commercial Paper	55.0	30.0
o/w Lease liabilities	143.5	11.1
o/w Contractual fees on investment properties	170.9	138.5
Long -term provisions	25.3	25.1
Deposits and security interests received	34.6	36.7
Deferred tax liability	65.4	53.4
CURRENT LIABILITIES	3,636.0	2,928.6
Current borrowings and financial liabilities	1,741.9	1,016.0
o/w Bond issues	257.1	16.9
o/w Borrowings from lending establishments	488.6	95.4
o/w Negociable European Commercial Paper	788.5	709.5
o/w Bank overdrafts	2.2	27
o/w Advances from Group shareholders and partners	190.7	174.4
o/w Lease liabilities	9.4	12.1
o/w Contractual fees on investment properties	5.4	4.9
Derivative financial instruments	35.5	98.2
Contract liabilities	198.2	168.8
Trade and other payables	1,497.9	1,639.6
Tax due	11.1	6.1
Debts with Altarea SCA shareholders	151.4	0.0
TOTAL LIABILITIES	9,113.7	9,087.9

(1) Restated at December 31, 2019 for the change in presentation of current and non -current financial assets 2020 half