Altarea

Investor Presentation • Jul 27, 2017

2017 Half-year results

LEADING DEVELOPER IN FRENCH GATEWAY CITIES

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

AGENDA

INTRODUCTION ALTAREA, BUILDING GATEWAY CITIES RETAIL RESIDENTIAL OFFICE PROPERTY FINANCIAL PERFORMANCE OUTLOOK APPENDICES

3

INTRODUCTION

OFFICE PROPERTY Business model ramp up (new orders, rentals, deliveries)

FINANCE Strengthening financial resources (debt and equity)

2017 HALF-YEAR RESULTS 5

GROWTH(S)

BUILDING GATEWAY CITIES

A TAILOR MADE APPROACH TO EACH GATEWAY CITY

3.5 million m² under development, all products combined

€16.3 billion potential value

Targeting gateway cities A comprehensive answer 1. Urban areas: strengthening the existing urban fabric Montparnasse Austerlitz Issy Coeur de Ville

2. Greater Paris areas: Creation of city districts connected to transportation hubs

3. Regional gateway cities: support in development

figures at 100%

PARIS INNER CITY: MONTPARNASSE DISTRICT

GREATER PARIS: BUILDING THE NEW MASSY

850 residential units 1 conference centre 1 hotel 1 multiplex cinema 1 retail, services & restaurants complex 1 nursery 1 public car park with 550 spaces

Delivery: 2017

Programmes delivered in 2012

280 residential units 195 parking spaces 27 convenience stores Delivery: 2017

2017 HALF-YEAR RESULTS 10

GRAND LYON: VILLEURBANNE – LA SOIE

RETAIL

RETAIL

Portfolio: high-performing assets

Pipeline: strong creation of embedded value

figures at 100%

(1) Potential rents amounting to €142.5 million compared to a current portfolio generating €220.8 million in rent today (figures at 100%).

2017 HALF-YEAR RESULTS 13

PORTFOLIO: EXCELLENT PERFORMANCE

ENHANCING THE CUSTOMER EXPERIENCE

CAP 3000: EXTENSION UNDERWAY

April 2017

Opening of 9 stores over 2,100 m²: completion of refurbishments & launch of extension works

2018 2019

New iconic entry and high-end mall

Delivery of the extension's main section (+150 stores in total)

2017 HALF-YEAR RESULTS 16

MONTPARNASSE RAIL STATION: LETTING STARTED

50% of the retail units opened by the end of 2018

90 million users in 2020 A real urban hub for long-distance passengers, commuters, workers and residents of this key district

PROPERTY DEVELOPMENT

PROPERTY DEVELOPMENT (OFFICES & RESIDENTIAL)

RESIDENTIAL

RESIDENTIAL: BUSINESS AND FINANCIAL PERFORMANCE

NEW ORDERS: €1,199M, +25%

(1) Including 2% Serviced Residences and 3% Renovation. (2) Cogedim.

2017 HALF-YEAR RESULTS 22

STRONG EMBEDDED GROWTH

Today's portfolio creates tomorrow's new orders and the day forward's revenue

OFFICE PROPERTY

OFFICE PROPERTY: BUSINESS AND FINANCIAL PERFORMANCE

SIGNIFICANT LETTINGS

≥ €60m of rents (all combined together) and 115 300 m²

2017 HALF-YEAR RESULTS 26

A UNIQUE MODEL

54 projects

851,⁸⁰⁰ m²

€4.6bn potential value at 100%

(1) Ex Tours Pascal.

MEDIUM-TERM INVESTOR: VERY STRONG EMBEDDED VALUE CREATION

DEVELOPER: RECURRING ACTIVITY FLOW

SERVICE PROVIDER: SECURED ADDITIONAL INCOME

THE OFFICE OF THE FUTURE

in the heart of a district To serve user… … and stakeholders

Opening buildings up to the city (halls, gardens, terraces)

Mixing spaces (retail, showroom, cafeteria)

Design buildings adapting to usages Optimise employee comfort Create hubs for meeting and exchanging ideas

Embody the corporate brand

Design sustainable buildings

FINANCIAL PERFORMANCE

VERY STRONG IMPROVEMENT IN RESULTS

REVENUE: €912.3M, +26.1%

2017 HALF-YEAR RESULTS

RECURRING NET RESULT (FFO): €115.4M, +25.5%

1.77% average cost

ENHANCED FINANCIAL RESOURCES

Equity	Inaugural bond issue (unrated)
€157.1 m payment of scrip dividend	New step toward the credit market	€500 m July 2017
91.69% subscription rate	Confidence of major European investors i the n (REIT developer) Group's unique model and	7 years maturity
1,021,555 new shares created	Continuation of the diversification and disintermediation financing strategy	2.25 % fixed annual coupon

FFO/SHARE: GROWTH SUPERIOR TO DILUTION

GOING-CONCERN NAV: +€12.6/SHARE THROUGH VALUE CREATION OVER THE HALF-YEAR

GUIDANCE AND OUTLOOK

2017 targets confirmed	Operational targets	Outlook
€16.0 ≥	10,000+ recurring units	Strong visibility 2018 - 2019
FFO/share		40-45%
€11.5 ≥	Lease and sale	LTV
dividend/share	Implementing the pipeline	Dividend growth

APPENDICES

GLOSSARY (1/4)

AltaFund: A discretionary investment fund, created in 2011, with €650 million in equity of which Altarea Cogedim is one of the contributors alongside leading institutional investors. In March 2015, the Group increased its AltaFund capital allocation from €100 million to €150 million, thereby increasing its interest in new programmes initiated by AltaFund since 2015 to 30%.

Average cost of debt: Complete average cost, including arranging fees and commitment fees.

Bad debt: 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%. Excluding property being redeveloped.

BREEAM In-use: BRE Environmental Assessment Method in-Use. Certification for environmental performance of building operation. Developed by the Building Research Establishment (BRE), it is now applicable throughout the world through the BREEAM in-Use International pilot standard.

CAGR: Average annual growth rate.

Capitalisation rate: Net rent income / assessed value (excluding transfer taxes)

Change in rental income on a like-for-like basis: Change in rental income on a like-for-like basis, excluding assets under refurbishment.

CNCC: Conseil National des Centres Commerciaux, the French federation of shopping centres. French professional organisation of all shopping centre industry professionals, which publishes an index of revenue earned in the shopping centres of the member companies.

Cost price: Total development budget including interest expenses for the transaction and capitalised internal costs (including land price).

Entry-level and mid-range Residential: Programmes with a sale price below €5,000/m² in Paris Region and €3,600/m² in the regions, specifically designed to meet affordable housing and investment requirements (Pinel system).

Financial vacancy rate: Estimated rental value (ERV) of vacant units as a percentage of total estimated rental value. Excluding property being redeveloped and in arbitrage.

Footfall: Change in the number of visitors, measured by Quantaflow at equipped shopping centres, and by counting the number of cars in retail parks (excluding travel retail).

FPI: Fédération des Promoteurs Immobiliers, the French federation of real estate developers, which publishes a yearly index of its members' sales.

GLOSSARY (2/4)

Future offering (residential): Land portfolio consisting of controlled projects (through preliminary sales agreements, almost exclusively in unilateral form) which have not yet begun. (incl. taxes value when expressed in euros).

Gateway cities: Major conurbation concentrating the local population movements, activities and wealth of a regional urban area, with a population of over 300,000. On 7 August 2015, the law concerning the New Territorial Organisation of the Republic (NOTRe) entrusted new authority to the regions and redefined the authority allocated to each local government. The Group has operations in 12 gateway cities: Greater Paris, Nice Côte d'Azur metropolitan area, Marseille-Aix-Toulon, Toulouse metropolitan area, Greater Lyon, Grenoble-Annecy, Nantes metropolitan area, Bordeaux metropolitan area, Strasbourg Euro-metropolitan area, Lille European metropolitan area, Montpellier Mediterranean, Rennes metropolitan area and Bayonne.

Going concern NAV: Equity market value assuming a continuation in business, taking into account the potential dilution related to the SCA status.

GRESB: Global Real Estate Sustainability Benchmark. Reference ranking which evaluates the annual CSR performance of property companies worldwide (733 companies and funds ranked in 2016).

High-end residential: Residential units costing over €5,000 per m² in the Paris Region and over €3,600 per m² in other regions.

ICR: Operating income/Net borrowing costs. (Funds from operations column).

Loan to value (LTV): Debt ratio. Consolidated net debt/consolidated market value of the Group's assets.

Margin (property development): Operating income (FFO column)/Revenue.

Occupancy cost ratio: Ratio of rents and expenses invoiced to tenants (including reductions) to revenue. Calculated including tax and at 100%, excluding property being redeveloped.

Offices backlog: Consists of revenue (excl. tax) from notarised sales not yet recognised according to percentage of completion, new orders pending notarised deeds (signed PDCs) and fees pending receipt from third parties under signed contracts.

Open Innovation: Innovation methods based on sharing and collaboration between stakeholders.

Operating income: Recurring operating cash flow (FFO column in the consolidated P&L account).

GLOSSARY (3/4)

Pipeline (surface area): Shopping centres and convenience stores: m² GLA created. Offices: floor area or usable area. Residential: SHAB (properties for sale and future offering).

Pipeline (value): Estimated market value on the delivery date. Shopping centres: potential market value including tax of projects on delivery (net rental income capitalised at market rate). Convenience stores: revenue excluding development taxes. Offices: 100% of amounts (excl. tax) signed for off-plan sale/PDC, capitalised fees for DPMs and market value (excl. tax) for AltaFund. Residential: property for sale and portfolio (incl. taxes).

Pipeline Retail yield: Previsional gross rental income / cost price.

Portfolio asset value: Appraisal value including transfer duties at 30 June 2017.

Projects underway: Properties under construction.

Property developer (Office): The Groupe acts through off-plan or property development contracts

Property Development New Orders (Residential and Offices): Value (incl. tax). of Residential reservations and Offices orders (PDC development & off-plan contracts signed and DPM fees capitalised and AltaFund arbitrage items) signed over a period.

Property for sale: Units available for sale (incl. taxes value, or number count).

Recurring net result (FFO – Funds From Operations): Net result excluding changes in value, calculated costs, transaction fees and changes in deferred tax.

Renegotiation rate: Ratio between the number of existing or vacant leases renewed and relet over the year, compared to the number of leases at the beginning of the year (excluding refurbishments and assets managed for third parties). In France.

Residential backlog: Consists of revenue (excluding tax) from notarised sales to be recognised according to percentage of completion and individual and block reservations to be notarised.

Residential reservations: Reservations net of cancellations, with Histoire & Patrimoine reservations accounted for in proportion to the Group share of ownership (55%). (in € incl. tax when expressed as a value).

Residential revenue (€ excl. tax): Revenues recognised according to the percentage-of-completion method in accordance with IAS 18. The percentage of completion is calculated according to the stage of construction excluding land.

GLOSSARY (4/4)

Residential supply: Optional agreements for land signed and valued as potential residential orders (incl. taxes).

Retail pipeline rental income: Gross rent estimated at 100%.

Retailer revenue: Change in retailer revenue with the same locations over the first 5 months of the year. Excluding assets being redeveloped.

Secured projects: Projects either fully or partly authorised, where the land has been acquired or for which contracts have been exchanged, but on which construction has not yet begun.

Service provider: The Group acts as service provider through DPM contracts, leases, sales, asset and fund management.

Uplift rate: Ratio of rental income for existing or vacant leases renewed and relet over the year, compared to the rental income at the beginning of the year (excluding refurbishments and assets managed for third parties). In France.

Value creation – shopping centers: Change in value for investment properties group share (including transfer taxes)

BUILDING GATEWAY CITIES

Secured pipeline (by area) metropolitan	Surface areas (m²)(a)	Potential (€m)(b) value
Grand Paris	1 827 400 , ,	9 985 ,
Métropole Nice-Côte d'Azur	149 700 ,	1 374 ,
Marseille-Aix-Toulon	261 700 ,	1 019 ,
Toulouse Métropole	234 100 ,	764
Grand Lyon	194 500 ,	624
Grenoble-Annecy	116 600 ,	432
Métropole Nantes	900 77 ,	270
Bordeaux Métropole	242 700 ,	745
Eurométropole de Strasbourg	89 800 ,	318
Métropole Européenne de Lille	70 400 ,	155
Montpellier Méditerranée	92 700 ,	153
Métropole Métropole de Rennes area	1 300 ,	3
Italy	44 700 ,	200
Spain	22 400 ,	71
Other	43 500 ,	177
Total	3,469,400	16,290

(a) Shopping centres and convenience stores: m² GLA created. Offices: floor area or usable area. Residential: SHAB (properties for sale and future offering).

(b) Estimated market value on the delivery date.

Shopping centres: potential market value including tax of projects on delivery (net rental income capitalised at market rate).

Convenience stores: revenue excluding development taxes.

Offices: 100% of amounts (excl. tax) signed for off-plan sale/PDC, capitalised fees for DPMs and market value (excl. tax) for AltaFund.

Residential: property for sale and portfolio (incl. taxes).

RETAIL REIT - STANDING ASSETS AND PIPELINE

		Assets in operation			Projects under development
30 June 2017	GLA in m²	Gross rent current (€m)(d)	Value assessed by specialist (€m)(e)	GLA in m² created	Gross rent (€m) Estmated	Net investments (€m)(f)
Controlled assets (fully consolidated)(a)	720,800	192.6	4,231	378,400	134.9	1,790
Group share	564 100 ,	136 7	2 878 ,	353 300 ,	110 2	1 503 ,
Share of minority interests	156 700 ,	55 8	1 352 ,	25 100 ,	24 7	286
Equity assets(b)	132,300	28.3	426	58,400	7.6	78
Group share	62 900 ,	13 2	208	29 200 ,	3 8	39
Share of third parties	69 400 ,	15 1	218	29 200 ,	3 8	39
Total Standing Assets	853,100	220.8	4,656	436,800	142.5	1,868
Group share	627 000 ,	149 9	3 086 ,	382 500 ,	114 0	1 542 ,
Share of third parties	226 100 ,	70 9	1 570 ,	54 300 ,	28 5	325
Management for third parties(c)	167,700	34.8	611	-	-	-
Total Assets under management	1,020,800	255.6	5,268	436,800	142.5	1,868
Group share	627 000 ,	149 9	3 086 ,	382 500 ,	114 0	1 542 ,
Share of third parties	393 800 ,	105 7	2 181 ,	54 300 ,	28 5	325

(a) Assets in which Altarea Cogedim holds shares and over which the Group exercises operational control. Fully consolidated in the consolidated financial statements. (b) Assets in which Altarea Cogedim is not the majority shareholder, but for which Altarea Cogedim exercises joint operational control or a significant influence. Consolidated using the equity method in the consolidated financial statements.

(c) Assets held entirely by third parties who entrusted Altarea Cogedim with a management mandate for an initial period of three to five years, renewable.

(d) Rental value of leases signed at 1 July 2017.

(e) Appraisal value including transfer duties.

(f) Total budget including interest expenses and internal costs.

RETAIL REIT

Change in net rental income

	In €m
Net rental income at 30 June 2016	85.6
Acquisitions	0.9
Centres under refurbishment (a)	(0.5)
Like-for-like change	2.7 +4 1%
Net rental income at 30 June 2017	88.8 +3 7%
(a) Massy

	S1 2017	2016	2015
ratio(a) Occupancy cost	9,9%	9,9%	9,9%
ratio(b) Bad debt	2,0%	2,4%	1,9%
Financial vacancy(c)	2,6%	2,7%	2,9%

(a) Ratio of billed rents and expenses to tenants (including reductions) to sales revenue. Calculated including tax and at 100%, excluding property being redeveloped.

(b) 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%. Excluding property being redeveloped.

(c) Estimated rental value (ERV) of vacant units as ^a percentage of total estimated rental value. Excluding property being redeveloped.

NET ASSET VALUE

GROUP NAV		30/06/2017			30/06/2016 Published		31/12/2016 Published
	In €m	€/share(d) Change/ Change	share	In €m	€/share (d)	In €m	€/share (d)
Consolidated equity, Group share	1,775.9	110.8		1,459.0	97.1	1,620.9	107.8
Other unrealised capital gains Restatement of financial instruments Deferred tax on the balance sheet for non-SIIC	637.0 53.9			406.3 113.4		636.5 68.7
assets (a) EPRA NAV	26.8 2,495.6 +24	155.5 9%	16 9%	20.1 1,998.8	133.0	23.9 2,350.0	156.4
Market value of financial instruments	(53.9)			(113.4)		(68.7)
Fixed-rate market value of debt Effective tax on unrealised capital gains on non	(1.7) (26.8)			(19.2) (19.3)		(14.4) (27.2)
(b) SIIC assets Optimisation of transfer duties (b)	93.7			65.3		90.8
Partners' share (c) EPRA NNNAV (NAV liquidation)	(18.6) 2,488.3 +31	155.0 2%	22 8%	(15.1) 1,897.1	126.2	(18.5) 2,312.1	153.8
Estimated transfer duties and selling fees Partners' share (c)	80.1 (0.6)			96.9 (0.8)		86.7 (0.7)
Diluted Going Concern NAV	2,567.8 +28	160.0 8%	20 6%	1,993.2	132.6	2,398.1	159.6

(d) Number of diluted shares: 16,051,842 15,030,287 15,030,28

INCOME STATEMENT

In €m	Retail	Residential	Offices	Funds from operations (FFO)	Changes in value, estimated expenses and transaction costs	TOTAL
Revenue	105.1	640.8	166.4	912.3		912.3
vs 30/06/2016 Change	(0 .8)%	+26.6%	x1.6	+26.1%
Net rental income	88.8	–	–	88.8		88.8
Net property income	0.7	61.9	33.0	95.5		95.5
External services	8.6	0.6	4.3	13.6		13.6
Net revenue	98.1	62.5	37.3	197.8		197.8
vs 30/06/2016 Change	(0 .8)%	+48.8%	x 2.5	+28.5%
Own work capitalised and production held in inventory	2.6	61.6	10.6	74.8		74.8
Operating expenses	(27.5)	(86.7)	(18.4)	(132.6)		(132.6)
Net overhead expenses	(24.9)	(25.1)	(7.7)	(57.7)		(57.7)
Contribution of EM associates	10.6	4.2	3.4	18.2	5,8	24.1
Changes in value - Retail				–	125.4	125.4
Changes in value - Residential				–	(7.8)	(7.8)
Changes in value - Offices				–	(2.4)	(2.4)
Other				–	(2.9)	(2.9)
OPERATING INCOME	83.8	41.6	33.0	158.2	118.1	276.3
vs 30/06/2016 Change	(3 .7)%	+ 25 0% ,	x 2.4	+ 17.8%
Net borrowing costs	(13.9)	(3.2)	(1.3)	(18.4)	(2.5)	(20.9)
Other financial income/loss	4.0	–	–	4.0	4.7	8.7
Income/loss on financial instruments	–	–	–	–	14.1	14.1
Other	0.0	0.0	–	0.1	(0.5)	(0.4)
Tax	(0.2)	(2.5)	(1.8)	(4.5)	(9.9)	(14.4)
NET INCOME	73.5	35.9	29.9	139.4	124.0	263.3
Non-controlling interests	(20.1)	(4.0)	0.2	(23.9)	(63.4)	(87.3)
NET INCOME, GROUP SHARE	53.4	31.9	30.1	115.4	60.6	176.0
vs 30/06/2016 Change	+1.6%	+22.9%	x 2.5	+25.5%		x 19.8
Diluted of average number shares				230 125 15 , ,		230 125 15 , ,
NET INCOME, GROUP SHARE PER SHARE				7.58		11.56
vs 30/06/2016 Change				+9 0%		x 17 2

GROUP NET FINANCIAL DEBT: €2,578M

Breakdown of gross debt at 3,228m€

LOAN TO VALUE (LTV)

LTV calculation, at 30/06/2017	In €m
Gross debt	3,228
Cash and cash equivalents	(650)
Consolidated net debt	2,578
Shopping centres at value (FC)(a)	4,231
Shopping centres at value (EM securities) and Other(b)	392
Investment properties valued at cost(c)	480
Offices Investments(d)	116
Value of Property Development(e)	1,677
Market value of assets	6,897

LTV Ratio 37.4%

(a) Market value (incl. tax) of shopping centres in operation recorded using the fully consolidated method.

(b) Market value (incl. tax) of securities of equity-accounted affiliates carrying shopping centres and other retail assets.

(c) Net book value of investment properties under development valued at cost.

(d) Market value (incl. tax) of securities of equity-accounted affiliates

concerning investments in Offices and other Offices assets.

(e) Value assessed by specialist of Property Development (property value).

DETAILED BALANCE SHEET (1/2)

In €m	30/06/2017	31/12/2016
NON-CURRENT ASSETS	5,163.3	5,034.9
Intangible assets	258.7	257.9
o/w goodwill	155 3	155 3
o/w brands	89 9	89 9
o/w client relations	2 8	5 5
o/w other intangible assets	10 7	7 2
Property, plant and equipment	16.5	14.2
Investment properties	4,355.4	4,256.0
o/w investment properties in operation fair value at	3 875 5 ,	3 797 0 ,
o/w investment properties under development and under construction at cost	479 9	459 0
Securities and investments in equity affiliates and unconsolidated interests	447.3	412.0
Loans and receivables (non-current)	9.0	9.1
Deferred tax assets	76.4	85.7
CURRENT ASSETS	2,460.8	2,046.6
Net inventories and work in progress	1,102.4	978.1
Trade and other receivables	579.8	524.0
Income tax credit	3.3	9.4
Loans and receivables (current)	43.4	46.4
Derivative financial instruments	2.0	10.2
Cash and cash equivalents	649.9	478.4
Assets held for sale and from the discontinued operation	80.0	-
TOTAL ASSETS	7,624.1	7,081.4

DETAILED BALANCE SHEET (2/2)

In €m	30/06/2017	31/12/2016
EQUITY	2,979.4	2,758.3
Equity attributable to Altarea SCA shareholders	1,777.9	1,620.9
Capital	245.3	229.7
Other paid-in capital	563.2	588.3
Reserves	793.4	635.1
Income associated with Altarea SCA shareholders	176.0	167.8
Equity attributable to minority shareholders of subsidiaries	1,201.5	1,137.4
Reserves associated with minority shareholders of subsidiaries	919.1	840.5
Other equity components, subordinated perpetual notes	195.1	195.1
Income associated with minority shareholders of subsidiaries	87.3	101.8
NON-CURRENT LIABILITIES	2,436.4	2,337.6
Non-current borrowings and financial liabilities	2,378.0	2,280.7
o/w participating loans and advances from associates	82.6	82.3
o/w bond issues	428.3	428.0
o/w borrowings from lending establishments	1,867.1	1,770.3
Long-term provisions	19.7	20.0
Deposits and security interests received	32.2	31.7
Deferred tax liability	6,5	5.3
CURRENT LIABILITIES	2,208.3	1,985.5
Current borrowings and financial liabilities	1,006.7	799.9
o/w bond issues	104.8	104.4
o/w borrowings from lending establishments	148.5	240.0
o/w treasury notes	672.7	358.6
o/w Bank overdrafts	6.8	2.5
o/w from Group advances shareholders and partners	73.9	94.3
Derivative financial instruments	54.9	75.3
Accounts payable and other operating liabilities	1,141.6	1,109.9
Tax due	0.9	0.4
Payables owed to shareholders of Altarea SCA and to minority shareholders of subsidiaries	4.2	-
TOTAL LIABILITIES	7,624.1	7,081.4