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ANNUAL RESULTSfor the year ended 30 June 2019

ATTACQ SUMMARISED PROVISIONAL CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2019 1 /

NOTES1

A T T A C Q | A N N U A L R E S U L T S P R E S E N T A T I O N

2 OVERVIEW

5 SOUTH AFRICAN PORTFOLIO

16 DEVELOPMENTS AT WATERFALL

AGENDA

27 INVESTMENT IN MAS

32 REST OF AFRICA RETAIL INVESTMENTS

34 FINANCIAL RESULTS

43 ENVIRONMENTAL, SOCIAL AND GOVERNANCE

45 CONCLUSION

48 APPENDICES

Mall of Africa, Waterfall City

ANNUAL RESULTS for the year ended 30 June 2019

/ 2 ATTACQ SUMMARISED PROVISIONAL CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2019

3


01DEPS

2018: 80.7 cents

94.4 cents

STRATEGIC KPIs

05Interest cover ratio

2018: 1.78 times

1.85 times

02DPS

2018: 74.0 cents

81.5 cents

06Gearing

2018: 33.5%

37.7%

03DPS growth

Guidance: 7.5% to 9.5%

10.1%

07Trading density growth

2018: 5.1%

6.8%

04Waterfall bulk roll out*

2018: 103 541 m²

27 701 m²

08FTSE/JSE Responsible Investment Top 30 Index

2018: 3.9 rating

4.1 rating

* PGLA based on effective ownershipComparative figures have been restated – please refer to SENS announcement

2


Operating environmentWeak domestic economyIncreased competition for capitalLow business confidenceUncertainty

OPERATING CONTEXTProperty trendsOversupply of space in certain nodesTenant corporate failuresConstruction industry under pressureShopper and tenant behavioural changesIncreased focus on green buildingsIncreased focus on cost of occupancyThrough-the-cycle property valuations

Our responseFocused approachRecycling of capitalCash and debt managementCreating an experienceStakeholder relationshipESG investment

Keep our girls in school campaign, Attacq Foundation Attacq the future, MooiRivier mall Global Citizen / Mall of Africa, Waterfall City

The quality South African portfolio is dominant in its respective nodes,making it defensive in a subdued economy and sets Attacq apart.


NOTES

4


DEPS cents

2019 2018* Growth %

SOUTH AFRICAN PORTFOLIO 59.0 54.1 9.1

DEVELOPMENTS AT WATERFALL (3.8) (1.4) nmf

INVESTMENT IN MAS 26.9 19.5 37.9

REST OF AFRICA RETAIL INVESTMENTS 12.3 8.5 44.7

Distributable earnings per share 94.4 80.7 17.0

FOCUSED APPROACH FOR KEY DRIVERS

* Comparative figures have been restated – please refer to SENS announcement


6


SOUTH AFRICAN PORTFOLIO OVERVIEW

OFFICE AND MIXED-USE

INDUSTRIAL

HOTEL

Sector split by value (%)

RETAIL51.8

24.5

12.5

37.8

25.3

8.6 8.60.6

1.227.3

WATERFALLOTHER

GBCSA Green Building Council of South AfricaLEED Leadership in Energy and Environmental DesignEBP Existing Building Performance rating^ Primary gross lettable area

4 STAR GBCSA

5 STAR GBCSA

SILVER LEED

GREEN ELEMENTS

EBP IN PROGRESS

GOLD LEED60.6

3.4

3.6

5.5

4.9

15.3

3 STAR GBCSA1.8

4.91.8

Green elements based on PGLA^ (%)

NON-GREEN ELEMENTS

5


1ST KEY DRIVER: SOUTH AFRICAN PORTFOLIO

SOUTH AFRICAN PORTFOLIO R20.5 bnDEPS 59.0 cps

75.6%

Mall of Africa, Waterfall City


NOTES

7


Weighted on property value2 Eglin valued on income cap method, therefore excluded

VALUATION INPUTS FOR DCF METHODOLOGY

SECTOR% of total portfolio

%Discount rates

%Exit cap rates

%Cap rates

%Average value

R/m²

Retail 52.2 12.38 7.10 6.84 32 592

Office and mixed-use 37.3 13.13 8.05 7.63 29 699

Light industrial 8.6 13.51 8.32 7.51 9 714

Hotel 1.8 13.74 8.40 7.91 25 338

Total portfolio 100.0 12.78 7.58 7.21 26 185

La Parada, Waterfall Corner


10


* Rental escalation excluding rates# Weighted average

SOUTH AFRICAN PORTFOLIO: RETAIL01Value of total portfolio

2018: 52.5%

51.8%

05Rental reversion#

2018: (10.7%)

+1.6%

02Vacancy

2018: 1.2%

2.9%

06Rental escalation*#

2018: 7.2%

7.0%

03Arrears

2018: 0.5%

0.6%

07Trading density growth

2018: 5.1%

6.8%

04WALE

2018: 4.5 years

4.1 years

08Non-PGLA income

2018: R17.6 million

R16.1 million

9


SOUTH AFRICAN PORTFOLIO: LEASING UPDATEVACANCIES 2019 2018

% PGLA m2 % PGLA m2

Retail 2.9 8 562 1.7 4 946

Office and mixed-use 11.8 32 594 16.7 42 198

Light industrial 3.2 5 262 5.3 8 518

Hotel - - - -

Year end portfolio vacancy 6.2 46 418 7.7 55 662

Less: filled post year-end 0.9 6 594 3.0 21 791

Less: 2 Eglin 2.8 20 732 2.9 20 732

Adjusted portfolio vacancy 2.5 19 092 1.8 13 139

Waterfall 1.4 10 610 0.6 4 573

Other 1.1 8 482 1.2 8 566


NOTES

11


TRADING DENSITY* RENT TO TURNOVER#

CENTRE2019R/m2

2018R/m2

Growth%

2019%

2018%

Change%

Super-regional 3 202 2 832 13.1 9.1 9.6 (5.2)

Mall of Africa 3 202 2 832 13.1 9.1 9.6 (5.2)

Regional 2 733 2 631 3.9 7.3 7.1 2.8

Brooklyn Mall 3 033 2 900 4.6 10.7 10.1 5.9

Eikestad Precinct 2 659 2 490 6.8 7.0 7.0 -

Garden Route Mall 2 765 2 649 4.4 7.0 6.7 4.5

MooiRivier Mall 2 632 2 598 1.3 6.6 6.4 3.1

Convenience 4 963 4 939 0.5 5.5 5.2 5.8

Glenfair Boulevard 4 980 4 942 0.8 5.2 5.0 4.0

Lynnwood Bridge 4 940 4 935 0.1 5.9 5.5 7.3

Waterfall Corner 3 668 3 338 9.9 5.1 5.3 (3.8)

Portfolio 3 114 2 915 6.8 7.6 7.6 -

* Reported tenant turnover divided by PGLA based on a 12 month average # Gross rental including operating costs and rates divided by reported turnover based on a 12 month average

SOUTH AFRICAN PORTFOLIO: RETAIL | CONTINUED


13


SOUTH AFRICAN PORTFOLIO: OFFICE AND MIXED-USE01Value of total portfolio

2018: 38.3%

37.8%

05Rental reversion#

2018: (17.2%)

+2.8%

02Vacancy

2018: 16.7%

11.8%

06Rental escalation *#

2018: 7.8%

7.7%

03Arrears

2018: 0.2%

0.3%

07Tenant retention success rate

2018: 61.9%

89.4%

04WALE

2018: 7.8 years

6.8 years

08PGLA green certified

2018: 58.2%

59.0%


12


SOUTH AFRICAN PORTFOLIO: MALL OF AFRICA

* Reported tenant turnover divided by PGLA based on a 12-month average

2019 2018 2017

Trading density* (R/m²) 3 202 2 832 2 564

Annual foot count (million) 15.5 14.6 14.0

Rent to turnover (%) 9.1 9.6 9.9

Non-PGLA income (R’million) 7.1 5.9 4.3

Vacancy (%) 2.8 0.6 1.4

Arrears (%) 0.6 1.0 4.2

Voted “coolest” mall in SA


NOTES

14


SOUTH AFRICAN PORTFOLIO: LIGHT INDUSTRIAL01Value of total portfolio

2018: 7.4%

8.6%

04Vacancy

2018: 5.3%

3.2%

02Arrears

2018: 0.0%

0.0%

05PGLA of total portfolio

2018: 20.2%

22.5%

03WALE

2018: 11.4 years

10.0 years


2018: 4.9%

5.3%



16


2ND KEY DRIVER: DEVELOPMENTS AT WATERFALL

DEVELOPMENTS AT WATERFALL R2.3 bnDEPS (3.8) cps

8.6%

Deloitte Head Office, Waterfall City

15


SOUTH AFRICAN PORTFOLIO: HOTEL01Value of total portfolio

2018: 1.7%

1.8%

04Vacancy

2018: 0.0%

0.0%

02Arrears

2018: 0.0%

0.0%

05PGLA of total portfolio

2018: 1.9%

1.8%

03WALE

2018: 3.9 years

8.7 years


2018: 7.0%

7.0%



NOTES

17


WATERFALL CITY

PipelineCompleted

Under construction

Waterfall City

Netcare Hospital


19


COMPLETED DEVELOPMENTS YEAR TO DATE

+ Attacq has a 50.0% ownership

COMPLETED BUILDINGS Land parcelEffective PGLA m² % Let Lease commencement date

Waterfall CityWaterfall Corporate Campus – Accenture+ 10B 1 985 100.0 1 December 2018Waterfall Corporate Campus – Building 2+ 10B 3 230 52.4 1 August 2019Waterfall Logistics HubCummins Southern Africa Regional Office+ 9 7 649 100.0 1 March 2019Midi warehouse 8 5 262 - -Pirtek 8 2 815 100.0 1 May 2019Superga 8 4 710 100.0 1 June 2019Zimmer Biomet+ 8 2 050 100.0 1 August 2019Total 27 701 75.5

Cummins

Pirtek, Supergaand midi warehouse

ZimmerBiomet

CorporateCampus

Cummins, Waterfall Logistics Hub

18


WATERFALL BULK

Industrial 170 952m²

Total 170 952m²

TOTAL REMAINING BULK

COMPLETED - HELD

COMPLETED - SOLD

BULK - SOLD

2019(%)

2018(%)

UNDER CONSTRUCTION

50.6

24.6

8.7

12.1

4.0

WATERFALLCITYAN INTEGRATEDCITY THATWORKS

WATERFALLLOGISTICS HUBGAUTENG’SLOGISTICS HUBOF CHOICE

Retail 52 692m²

Residential 68 080m²

Office 593 101m²

Industrial 13 321m²

Hotel 50 640m²

Total 777 834m²

8.7

23.4

12.5

4.3

51.1

Total of 948 786m² remaining undeveloped bulk

• Joint venturewith Sanlam

• 686 054m² bulk• Attacq current

shareholding of 23.6%• Right to increase

shareholding to 50.0%

• Attacq appointed as› Development

manager› Property manager› Asset manager


NOTES

20


Deloitte Head Office

PGLA: ±42 500m²

Land Parcel 10

Sector: office

50.0% JV with Atterbury

Targeting Silver LEED certification (as built and commissioning)

Completion date: Quarter 3 FY20

Corporate consolidation

DEVELOPMENTS UNDER CONSTRUCTION

Deloitte


22


Waterfall Corporate Campus

PGLA: ±35 000m²

Land Parcel 10B

Seven buildings phased development

Sector: office

50.0% JV with Zenprop

All buildings targeting four-star GBCSAcertification (by design and as built)

Complete

• Building 1 (5 868m²) – fully let,multi-tenanted

• Building 2 (6 460m²) – 52.4% let

• Building 3 Accenture (3 970m²) – fully let

Under construction

• Building 5 ContinuitySA (5 530m²) – fully let

• Completion date: Quarter 2 FY20

Pipeline

• Building 4 (4 526m²)

DEVELOPMENTS UNDER CONSTRUCTION | CONTINUED

CorporateCampus

21


The Ingress

PGLA: ±20 500m²

Land Parcel 10

Sector: office

Targeting four-star GBCSA certification (by design and as built)

Five buildings phased development

Phase I consists of two buildings

Building 1 (4 371m²) fully tenantedby PSG WealthCompletion date: Quarter 1 FY20

Building 2 (4 360m²) specCompletion date: Quarter 2 FY20


The Ingress


NOTES

23


Ext 124 which includes Courtyard Hotel

PGLA: ±32 000m²

Land Parcel 10

Sector: office and mixed-use


Phased development

“New concept” 4-star Courtyard Hotelby the City Lodge Hotel Group

› 168 keys

› Completion date: Quarter 2 FY21› Lease term: 15 years

Three office buildings


Ext 124


25


Ellipse Waterfall

Develop to sell residential units

Land Parcel 10

50.0% JV with Portstone Developments


Sector: residential (sectional title)

Phased development

• Phase 1: two towers 272 units

• Phase 2a: one tower ±176 units

• Phase 2b: one tower ±175 units

Phase 1 >80.0% pre-sold

Phase 2a launching Quarter 2 FY20

Completion date Phase 1: Quarter 4 FY21

Under construction post year end

DEVELOPMENTS PIPELINE

Ellipse

24


Waterfall Point

PGLA: 9 356m²

Land Parcel 15

Sector: office (sectional title)

Building 1 (2 339m²):Inventory, held for sale 79.8% pre-sold

Building 2 (2 339m²):Investment property 100.0% pre-let

Building 3 (2 339m²):Inventory, held for sale 90.0% pre-sold

Building 4 (2 339m²):Investment property 100.0% pre-let

Completion date: Quarter 2 FY20


Waterfall Point


NOTES

26


Blue-chip tenant

Total PGLA: ±4 757m²

Land Parcel 8

Sector: light industrial

Estimated completion date: Quarter 4 FY20

Under construction post year end

DEVELOPMENTS PIPELINE | CONTINUED

Blue-chip tenant


28


€1 389.8 million Current: 33.9%Target: 40.0%

€365.2 million

06Interest-bearing debt

€456.5 million2.95% - 5.6 years

07Facilities

• Negotiated €98.0 million• Under negotiation €58.0 million

08Net rental income

€ 51.6 (up 59.6%)

09Total equity

€858.1 million

10Shares in issue

637.5 million

11DEPS

9.01 euro cps

MAS OVERVIEW

01Strategy

Generation of sustainable growth in distributable earnings per shareTargeted sectors: retail and residential

03Total assets

04LTV

05Available capital

02Asset split

Investment property€964.7 million (+52.4%)

Prime Kapital Dev JV€196.0 million

Listed portfolio€87.8 million

Cash€71.2 million

Land Bank and other€70.2 million

Focus on Central and Eastern Europe (“CEE”)Redeployment of capital invested in Western Europe into CEE

27


3RD KEY DRIVER: INVESTMENT IN MAS

INVESTMENT IN MAS R3.2 bnDEPS 26.9 cps

11.8%

Roman Value Centre, Romania


NOTES

29


01Financial highlights59.6% increase in net rental income

52.4% increase in investment property

Final dividend of 4.97 euro cpsFully underpinned by earnings

Dividend growth guidance over next three years of 30.0% (non-linear)

MAS RESULTS AND INCOME-GENERATING PORTFOLIO02Western Europe

Acquisition in GermanyFlensburg Galerie, Flensburg: 25 540m² €62.6 million (January 2019)

Recycling of capitalDisposal of New Waverley hotel assets€43.3 million proceeds at yield of 4.1%

03Central and Eastern Europe

Acquisitions in RomaniaMilitari Shopping Centre, Bucharest:56 200m² €95.0 million (July 2018)

Atrium Mall Shopping Centre, Arad:28 600m² €40.5 million (December 2018)

Retail portfolio, nine assets, Romania:67 900m² €109.1 million (February 2019)

Planned extensions and refurbishment23 800m² extension of Militari Shopping Centre15 000m² extension of Burgas Mall (Bulgaria)3 000m² extension of Nova Park (Poland)Major refurbishment and tenant reconfiguration of Stara Zagora Mall (Bulgaria)

Mall Moldova, Romania


31


3,0

3,1

3,2

3,3

3,4

Jun2018

Equityacc

Shareof OCI

Dividend FXimpact

Jun2019

MAS IN ATTACQ’S FINANCIALS

• Shareholding unchanged at 22.8% • Slight increase in equity accounted investment in associate from R3.1 billion to R3.2 billion• Strong increase in net operating income, NAVPS flat due to negative value adjustments on listed equities portfolio• Cash dividends received of R185.6 million during period (being final MAS’ FY18 and interim FY19 dividends)• 0.7% weakening of rand vs euro

R’million

3 145.8

204.0 (5.0) (185.6)

24.2 3 183.4

30


Secured developments by sector (‘000m² and €’million)

615

783

0

200

400

600

800

Size Cost

MAS AND PKM DEVELOPMENTS

CEE development pipeline€783.0 million total development pipeline include:• 100 000m² super-regional Mall Moldova in Iasi• Two dominant regional malls

› Arges Mall: 50 800m²› Dambovita Mall: 32 900m²

• Four value centres• Two residential developments

› Avalon Estate: 767 units› Marmura residence: 468 units

• Silk district (Iasi): Large scale mixed-use complex including 100 000m² offices, a hotel and 2 500 residential units

• Two year extension of development joint venture› Exclusivity extended to 2025 and venture to 2030


NOTES

32


4TH KEY DRIVER: REST OF AFRICA RETAIL INVESTMENTS

REST OF AFRICA RETAIL INVESTMENTS R0.8 bnDEPS 12.3 cps

3.0%

Rest of Africa presence


34


FINANCIAL RESULTS

Lynnwood Bridge, Lynnwood

33


REST OF AFRICA RETAIL INVESTMENTS BREAKDOWN

R’000Jun

2019 %Jun

2018 %

Attacq offshore cash on hand 180 624 22.0 68 238 5.9

Ikeja City Mall (equity and loan) 276 899 33.8 305 173 26.3

AttAfrica (loan) 362 545 44.2 787 304 67.8

Total Rest of Africa retail investments 820 068 100.0 1 160 715 100.0

• Note: Attacq has no debt against its Rest of Africa retail investments.


NOTES

35


R’000 Jun 2019 Jun 2018 % change

South African portfolio 415 429 380 041 9.3

Developments at Waterfall* (26 589) (10 149) 162.0

Investment in MAS 189 057 137 462 37.5

Rest of Africa retail investments 86 209 59 823 44.1

Distributable earnings 664 106 567 177 17.1

DISTRIBUTABLE EARNINGS PER KEY DRIVER

Increase mainly due to newly completed buildings contributing to rental income for the first time

Cents per share Jun 2019 Jun 2018 % change

South African portfolio 59.0 54.1 9.1

Developments at Waterfall* (3.8) (1.4) nmf

Investment in MAS 26.9 19.5 37.9

Rest of Africa retail investments 12.3 8.5 44.7

Distributable earnings 94.4 80.7 17.0

Interest received in cash from AttAfrica (12.7) (6.6) nmf

Adjusted distributable earnings 81.7 74.1 10.3

Distribution per share 81.5 74.0 10.1

Interim 40.5 - nmf

Final 41.0 74.0 nmf

Holding costs on development rights comprising rates and taxes and POA levies

Increase in the underlying euro-based dividends and gains from rand weakness net of euro interest paid

Interest received in cash from AttAfrica and Ikeja

Interest received from AttAfrica will be used to settle debt

* Includes developments under construction, development rights and infrastructure and services


37



South African portfolio 20 455 643 20 950 535 (2.4)

Developments at Waterfall* 2 329 199 2 258 698 3.1

Investment in MAS 3 192 978 3 145 828 1.5

Rest of Africa retail investments 820 068 1 160 715 (29.4)

Head office – South Africa 252 441 334 276 (24.5)

Head office – Global 72 3 002 (97.6)

Total assets 27 050 401 27 853 054 (2.9)

Total liabilities (11 462 669) (10 810 924) 6.0

Total equity 15 587 732 17 042 130 (8.5)

Progress on developments under construction, net of the negative fair value adjustment on development rights


BALANCE SHEET PER KEY DRIVER

Impairments to AttAfrica and Ikeja

Increase in interest bearing debt in respect of developments and unfavourable MTM

Remaining proceeds received from disposal of Nova Eventis

Impairment of intangible asset

Cash decreased due to dividends paid

36


• Buildings included for 12 months in both periods# Excludes net operating income impact of 2 Eglin

NET OPERATING INCOME LIKE-FOR-LIKE

1 100

1 200

1 300

1 400

1 500

Jun 2018 Rental incomecompletedbuildings*

Rentalincomebuildings

completedFY18

Rentalincomebuildings

completedFY19

Net otherincome

Propertyexpenses

completedbuildings*

Propertyexpensesbuildings

completedFY18

Propertyexpensesbuildings

completedFY19

Jun 2019

R’million

Like-for-like net operating income per sector % Change

Retail 4.6

Office and mixed-use# 3.5

Light industrial 5.4

Hotel 7.4

1 210.2

89.8

134.4 12.0 (33.2)(72.1)

(27.5)1 308.4(5.2)


NOTES

38


EQUITY MOVEMENT

18

19

20

21

22

23

24

25

Jun2017

Decon-solidation of

NT / MAJ

Shareissues

A-F-Sreserve

Distributablereserve

FCTR Settlementof share-

basedpayments

Share-based

paymentreserve

Jun2018

IFRS 9transition

adjustment

Shareissues

A-F-Sreserve

Distributablereserve

Dividendpaid

FCTR Settlementof share-

basedpayments

Share-based

paymentreserve

Jun2019

R per share

19.84 0.06 0.00

0.01

3.64

0.72 (0.04) 24.24 (0.03) 0.130.00 (1.08)0.03

(1.14)

0.04 0.03(0.03) 22.16


40


* Loan advanced to 25.0% co-owners of the PwC Tower

INVESTMENTS

3 183 3 146

363

787

332 332 277 305 241 337112 144

0 91 32 40 0 3 52 46 0

500

1 000

1 500

2 000

2 500

3 000

3 500

Jun2019

Jun2018

Jun2019

Jun2018

Jun2019

Jun2018

Jun2019

Jun2018

Jun2019

Jun2018

Jun2019

Jun2018

Jun2019

Jun2018

Jun2019

Jun2018

Jun2019

Jun2018

Jun2019

Jun2018

MAS AttAfrica PwCTower*

Ikeja CityMall

NewtownPrecinct

Attacq SanlamJVs

Attacq EquitesJV

Wingspan Stenham Other

Equity Loan

R’million

39


INVESTMENT PROPERTIES MOVEMENT

16 000

17 000

18 000

19 000

20 000

21 000

Jun2017

Sold Capex DUC* DR** Completedbuildings

Heldfor sale

Inventory Jun 2018 Capex DUC* DR** Completedbuildings

Heldfor sale

Inventory PPE *** Other Jun2019

R million

18 243.9 (62.6)

(48.9) 60.6368.5

468.8 24.6 19 791.1

950.4 92.2 (384.1)

736.2

(373.2)

70.1 23.7(102.4) 13.7 20 081.5

* DUC: Developments under construction** DR: Development rights*** PPE: Property, Plant and Equipment

Fair value adjustments Transfers Fair value adjustments Transfers


NOTES

41


INVESTEC BANK

NEDBANK

RMB

SANLAM

ABSA

STANDARD BANK

BANK OF CHINA

MMI

LIBERTY

OMSFIN

INTEREST-BEARING DEBT

Funding mix (%)

2019

29.90.5

4.42.9

4.52.9

38.4

7.5

3.0

6.0

* Calculated as interest bearing debt / (total assets - (goodwill + intangible assets + deferred initial lease expenditure + straight line lease adjustment + receivables + deferred tax asset))

Group covenants Covenant Actual

Gearing ratio* (%) 60.0 41.2

Minimum net asset value (R’bn) 7.0 15.6

2019 2018

Gross interest-bearing debt (R’000) 10 516 731 10 065 586

ZAR debt (R’000) 9 061 281 8 634 578

EUR debt (R’000) 1 455 450 1 431 008

Weighted average loan term (years) 3.6 4.2

Gearing (%) 37.7 33.5

Total hedged as a percentage of total committed facilities (%) 78.7 94.2

Weighted average term of hedges (years) 3.4 3.7

Total weighted average cost of debt (%) 8.8 8.9

ZAR weighted average cost of debt (%) 9.9 10.0

EUR weighted average cost of debt (%) 1.9 2.4

Interest cover ratio (times) 1.85 1.78


43


ENVIRONMENT, SOCIAL AND GOVERNANCEKeep Our Girls in School campaign Waterfall fun run, Waterfall park

42


37,733,5

0

10

20

30

40

Jun 2019 Jun 2018

8,89,9

1,9

8,910,0

2,4

0

4

8

12

Total Rand-denominated Euro-denominated

2019 2018

9,0 8,8

0,9 1,2

INTEREST-BEARING DEBT | CONTINUED

1,85 1,78

0,0

0,8

1,6

2,4

Jun 2019 Jun 2018

Interest cover ratio (times) and Gearing (%) Weighted average cost of debt (%)

260

4 317

1 008

2 833

2 099

990

1 7642 323

1 4291 884

0

1 000

2 000

3 000

4 000

5 000

Within 1 year 1 to 2 years 2 to 3 years 3 to 4 years > 4 years

Debt maturity Hedge maturity

Debt and hedge maturity (R’million)

11 91410 517

1 397

0

3 000

6 000

9 000

12 000

15 000

Committed facilities Drawn facilities Available facilities

Debt facilities (R’million)

Hedgingpremium

2,30,1


NOTES

44


EnvironmentalOur vision for sustainability is to betruly efficient resilient and smartThe reduced annual impact on carbon footprint of the Mall of Africa photovoltaic system is estimated at 8 180 t CO2e

ENVIRONMENTAL, SOCIAL AND GOVERNANCESocialLevel 4 B-BBEE rating

Concluded 2nd Phase rollout of UkukhulaProgram focusing on 30 people 12 months property development skills learnership

Main sponsor for Institute of Real Estate Management (IREM) South Africa Chapter’s Winter School Program for 20 black learners

Sponsoring 2019 school fees for qualifying employees

GovernanceIncluded in the FTSE/JSE Responsible Investment Top 30 IndexAll non-executive directors are independentExternal auditors - Deloitte Internal auditors - PwC

Photovoltaic system, Mall of Africa Keep our girls in school campaign, Attacq Foundation Johannesburg International Flower Show, Waterfall City


46


South Africa• Own and manage dominant nodes

anchored by retail• Focus on property fundamentals

› Tenant retention› Proactive in identifying tenant failures› Lowering cost of occupancy

• Roll-out developments in Waterfall City and Waterfall Logistic Hub

• Create work, live, play environment

STRATEGIC FOCUS - YEAR AHEADInternational• MAS: future cap raisings will not be

followed• Africa: no further investments to be made

but for operational needs • Africa: continue implementation of exit

strategy• Disposal proceeds to be used to reduce

debt

Balance sheet management• Recycling of assets • Improve interest cover ratio (ICR)• Long-term targets:

› Gearing <35.0%› ICR >2.0 times› Interest rate hedging >70.0%

• Guidance for FY20*› 8.0% to 10.0% growth in DPS

Pirtek, Waterfall Logistics Hub Atrium Mall, Romania MooiRivier mall, Potchefstroom

* Guidance has not been reviewed or reported onby Attacq’s auditors

45


CONCLUSION

Accenture, Waterfall City


NOTES

47


QUESTIONS AND ANSWERS

Eikestad Mall, Stellenbosch


49


* Gross rental including operational expenditure and rates

TOP 5 TENANTS PER SECTOR

Top 5 tenants

Attributable gross rentalas a % of total gross rent

R

RetailThe Foschini Group 3.3Edcon 3.1Mr Price Group 2.5Woolworths 2.5Shoprite Checkers 2.2Office and mixed-usePwC 5.6Cell C 5.3Aurecon 5.1Transnet 3.5Adams & Adams 2.9Light industrialMassmart 2.4Amrod 2.1BMW 2.1Cummins 0.7Torre Industries 0.6

Top 5 tenants

Attributable PGLAas a % of total PGLA

R

RetailWoolworths 3.3Edcon 3.1Shoprite Checkers 2.5Massmart 2.5The Foschini Group 2.2Office and mixed-usePwC 5.6Cell C 5.3Aurecon 5.1Transnet 3.5Adams & Adams 2.9Light industrialMassmart 2.4Amrod 2.1BMW 2.1Cummins 0.7Torre Industries 0.6

48


APPENDICES

Garden Route Mall, George


NOTES

50


LEASING RENEWALS PER SECTOR

SECTORExpired PGLA

m²Success rate

%Reversion rate

% Escalation rate

%

Retail 14 944 79.0 1.6 4.5

Office and mixed-use 3 476 89.4 2.8 7.6

Total 18 420 80.6 0.7 5.0

Attacq Kick off 2019, Waterfall City


52


* Percentage of total Attacq PGLA as at 30 June 2019# Contractual rent excludes CNA which does not form part of the Edcon recapitalisation

%FY20

12 months#FY21

9 months#FUTURE IMPACT ON DISTRIBUTABLE EARNINGS%

Total contractual rent 100.0 36.0 27.5

Net cash to be received 59.1 21.3 16.3

Equity subscription 40.9 14.7 11.2

MALLEffective share

%

Effective PGLAbefore restructure as

at 30 Jun 2018

Effective PGLAafter restructureas at 1 Oct 2019

% Edcon exposureper mall PGLA

after restructureas at 1 Oct 2019

Mall of Africa 80.0 13 855 9 350 9.4

Brooklyn Mall 25.0 1 893 1 587 8.5

Eikestad Precinct 80.0 1 793 605 1.6

Garden Route Mall 100.0 4 796 4 299 8.0

MooiRivier Mall 100.0 4 955 4 955 10.0

Glenfair Boulevard 100.0 223 223 1.4

Total 27 515 21 019 2.8*

SOUTH AFRICAN PORTFOLIO: EDCON RESTRUCTURE

51


RETAIL CATEGORY % of area % of total turnover% trading density

growth

Apparel 25.8 21.3 4.0

Department stores 23.6 20.7 12.1

Food 11.9 13.2 (1.5)

Health and beauty 5.4 11.7 3.3

Food services 8.4 9.6 13.0

Homeware, furniture and interior 4.9 4.7 7.6

Sportswear and outdoor 6.8 4.3 9.5

Entertainment 3.4 4.4 8.9

Speciality 2.4 4.6 12.4

Electronics 1.1 2.1 (0.1)

Books, cards and stationery 1.8 1.5 (4.5)

Accessories, jewellery and watches 0.5 0.7 1.1

Eyewear and optometrists 3.5 0.6 5.9

Luggage 0.3 0.4 (2.2)

Services 0.2 0.2 9.8

Total 100.0 100.0 6.8

SOUTH AFRICAN PORTFOLIO: RETAIL | CONTINUED


NOTES

53



South African Portfolio 10 321 064 11 382 117 (9.3)

Developments at Waterfall* 2 329 199 2 258 698 3.1

Investment in MAS 1 969 099 1 952 162 0.9

Rest of Africa Retail Investments 803 851 1 160 715 (30.7)

Head office – South Africa 164 447 285 436 (42.4)

Head office – Global 72 3 002 (97.6)

Net asset value 15 587 732 17 042 130 (8.5)


NET ASSET VALUE PER KEY DRIVER

CENTS PER SHARE Jun 2019 Jun 2018 % change

South African Portfolio 14.67 16.19 (9.4)

Developments at Waterfall* 3.31 3.21 3.1

Investment in MAS 2.80 2.78 0.8

Rest of Africa Retail Investments 1.14 1.65 (30.8)

Head office – South Africa 0.23 0.41 42.4

Head office – Global - - 97.6

Net asset value per share 22.16 24.24 (8.6) 340 000 shares issued due to LTI scheme


55


2nd 3rd and 4th key drivers

PORTFOLIO AND INVESTMENTS OVERVIEW | CONTINUED

REST OF AFRICA RETAIL INVESTMENT %

ATTAFRICA^

Accra Mall, Accra, Ghana 15.0

West Hills Mall, Accra, Ghana 14.3

Kumasi City Mall, Kumasi, Ghana 23.9

Manda Hill, Lusaka, Zambia 15.9

GRUPPO^

Ikeja City, Mall Lagos, Nigeria 25.0

INVESTMENT IN MAS %

MAS Real Estate Inc^ 22.8

DEVELOPMENTS UNDER CONSTRUCTION %

Waterfall City

Deloitte Head Office# 50.0

The Ingress Phase I 100.0

Waterfall Corporate Campus – ContinuitySA# 50.0

Ext 124, which includes Waterfall Courtyard 100.0

Waterfall Point 100.0

DEVELOPMENT RIGHTS %

Waterfall City and Waterfall Logistics Hub, Waterfall 100

KEY

^ Accounted for as an investment in associate# Undivided share

All shareholdings represent Attacq’s effective interest

54


1st key driver

PORTFOLIO AND INVESTMENTS OVERVIEW

INDUSTRIAL PORTFOLIO %

Amrod, Waterfall 100.0

BMW Group SA Regional Distribution Centre, Waterfall 100.0

Cummins SA Regional Office, Waterfall# 50.0

Dimension Data, Waterfall 100.0

Dis-Chem warehouse, Waterfall 100.0

Massbuild Distribution Centre, Waterfall 100.0

Midi warehouse, Waterfall 100.0

Pirtek, Waterfall 100.0

Superga, Waterfall 100.0

Torre Industries, Waterfall 100.0

Zimmer Biomet, Waterfall# 50.0

HOTEL PORTFOLIO %

City Lodge, Newtown^ 50.0

City Lodge, Pretoria 100.0

City Lodge, Waterfall 100.0

RETAIL PORTFOLIO %

Brooklyn Mall, Pretoria# 25.0

Eikestad Mall, Stellenbosch# 80.0

Garden Route Mall, George 100.0

Glenfair Boulevard, Pretoria 100.0

Lynnwood Bridge Retail, Pretoria 100.0

Mall of Africa, Waterfall# 80.0

MooiRivier Mall, Potchefstroom 100.0

Newtown Junction, Johannesburg^ 50.0

Waterfall Corner, Waterfall 100.0

Waterfall Lifestyle, Waterfall 100.0

Westwood Mall, Durban^ 34.4

OFFICE AND MIXED-USE PORTFOLIO %

2 Eglin, Sunninghill 100.0

Allandale Building, Waterfall 100.0

Aurecon, Pretoria 100.0

Brooklyn Bridge Office Park, Pretoria 100.0

Cell C Campus, Waterfall 100.0

Gateway West, Waterfall 100.0

Lynnwood Bridge Offices, Pretoria 100.0

Transnet, Waterfall 100.0

The Majestic, Johannesburg^ 50.0

Maxwell Office Park, Waterfall# 50.0

Newtown Nedbank, Johannesburg^ 50.0

Novartis, Waterfall 100.0

PwC Tower, Waterfall* 75.0

Waterfall Corporate Campus – Building 1, Waterfall# 50.0

Waterfall Corporate Campus – Building 2, Waterfall# 50.0

Waterfall Corporate Campus – Accenture, Waterfall# 50.0

KEY

^ Accounted for as an investment in associate# Undivided share

* Co-ownership

All shareholdings represent Attacq’s effective interest


NOTES

56


Hotel portfolio

PROPERTY NAME LocationPGLA

m²Valuation

R’000ValueR/m²

City Lodge Hotel Lynnwood Pretoria 7 946 224 893 28 303City Lodge Hotel Waterfall City Waterfall 5 744 121 980 21 236TOTAL 13 690 346 873 25 338

Values provided above reflect Attacq’s undivided share in the property: *25.0%; **80.0%

SOUTH AFRICAN PORTFOLIO OVERVIEWRetail portfolio

PROPERTY NAME Location Key tenantsPGLA

m²Valuation

R’000ValueR/m²

Brooklyn Mall* Pretoria Checkers, Dis-Chem, Game, Woolworths 18 778 694 000 36 958 Eikestad Mall** Stellenbosch Checkers, Game Food Lover’s Market, Woolworths 38 227 930 880 24 351 Garden Route Mall George Dis-Chem, Edgars, Game, Pick n Pay, Woolworths 53 816 1 495 400 27 787 Glenfair Boulevard Pretoria Dis-Chem, Shoprite Checkers, SuperSpar 15 951 492 026 30 846 Lynnwood Bridge – retail Pretoria Planet Fitness, Safari and Outdoor Warehouse, Woolworths 11 378 377 089 33 142 Mall of Africa** Waterfall Checkers Hyper, Game, Edgars, Woolworths 99 770 4 358 165 43 682 MooiRivier Mall Potchefstroom Checkers, Dis-Chem, Edgars Game, Woolworths 49 696 1 235 500 24 861 Waterfall Corner Waterfall Checkers, Woolworths 9 582 202 985 21 184 Waterfall Lifestyle Waterfall Bounce, Virgin Active 7 139 132 866 18 611 TOTAL 304 337 9 918 911 32 592


58


Values provided above reflect Attacq’s undivided share in the building: *50.0%

SOUTH AFRICAN PORTFOLIO OVERVIEW | CONTINUED

Light industrial portfolio

PROPERTY NAME Location TenantsPGLA

m²Valuation

R’000ValueR/m²

Amrod Waterfall Amrod 37 937 426 367 11 239 BMW Group SA Regional Distribution Centre Waterfall BMW 31 987 282 871 8 843 Cummins SA Regional Office* Waterfall Cummins 7 649 117 587 15 373 Dimension Data Waterfall Dimension Data 8 291 97 866 11 804 Dis-Chem warehouse Waterfall Dis-Chem 8 518 85 848 10 078 Massbuild distribution centre Waterfall Massbuild 50 033 412 404 8 243 Midi warehouse (speculative) Waterfall - 5 262 39 804 7 564 Pirtek Waterfall Pirtek 2 815 29 868 10 610 Superga Waterfall Superga 4 710 41 983 8 914 Torre Industries Waterfall Torre Industries 9 357 77 000 8 229 Zimmer Biomet* Waterfall Zimmer Biomet 2 050 26 326 12 842 TOTAL 168 609 1 637 924 9 714

57


Office and mixed-use portfolio

PROPERTY NAME Location Key tenantsPGLA

m²Valuation

R’000ValueR/m²

2 Eglin Sunninghill Group Five 25 525 151 503 5 935 Allandale building Waterfall Cummins, Trans-Africa Projects, WiseTech Global 15 359 422 729 27 523 Brooklyn Bridge Office Park Pretoria Circle Chambers, SARS 23 525 490 000 20 829 Cell C Campus Waterfall Cell C 43 890 1 028 004 23 422 Gateway West Waterfall Sage South Africa, Spaces 13 803 344 021 24 924 Transnet Waterfall Transnet 24 354 630 743 25 899 Lynnwood Bridge – Aurecon Pretoria Aurecon 19 104 796 093 41 672 Lynnwood Bridge Pretoria Adams & Adams, Citadel, Sanlam, Water Research Commission 27 613 957 165 34 664 Maxwell Office Park* Waterfall Cipla Colgate, Golder Associates, Premier Foods 18 423 548 096 29 751 Novartis Waterfall Novartis 7 982 237 105 29 705 PwC Tower# Waterfall PwC 36 461 1 415 730 38 829 Waterfall Corporate Campus – building 1* Waterfall Isuzu Motors South Africa, Decision Inc 2 934 82 098 27 982Waterfall Corporate Campus – building 2* Waterfall SASSETA 3 230 69 093 21 391Waterfall Corporate Campus – Accenture* Waterfall Accenture 1 985 67 126 33 817TOTAL 264 188 7 239 506 27 403

Values provided above reflect Attacq’s undivided share in the building: *50.0%; Values provided above reflect Attacq’s effective co-ownership in the building: #75.0%

SOUTH AFRICAN PORTFOLIO OVERVIEW | CONTINUED


NOTES

59


Values provided above reflect Attacq’s undivided share in the building: *50.0%# Estimated PGLA for Attacq’s attributable share of development. Subject to change upon final re-measurement post completion^ The estimated value on completion of pre-sold and inventory is indicative of sales proceeds and not of an external valuation

DEVELOPMENTS AT WATERFALL OVERVIEWDevelopments under construction

Landparcel

Completion date

PGLA#

m²% Pre-let

PGLA

Estimatedcapital cost

R’000

Estimated valueon completion

R’000

Book value at30 Jun 2019

R’000PROPERTY NAME

WATERFALL CITYDeloitte Head Office* 10 Q3 FY20 21 250 100.0 738 247 812 075 458 550The Ingress – PSG Wealth 10 Q1 FY20 4 371 100.0 119 529 129 612 101 189The Ingress – Building 2 10 Q2 FY20 4 360 0.0 118 597 106 241 57 084Waterfall Corporate Campus – ContinuitySA* 10B Q2 FY20 2 765 100.0 62 856 81 031 29 468Waterfall Courtyard Hotel 10 Q2 FY21 6 236 100.0 176 535 200 091 37 634Waterfall Point^ – building 1, inventory 15 Q2 FY20 2 339 79.8 pre-sold 60 580 68 904 45 650Waterfall Point – building 2, investment property 15 Q2 FY20 2 339 100.0 60 580 59 777 53 114Waterfall Point^ – building 3, inventory 15 Q2 FY20 2 339 90.0 pre-sold 60 580 65 489 5 487Waterfall Point – building 4, investment property 15 Q2 FY20 2 339 100.0 60 580 61 133 54 274TOTAL 48 338 89.5 1 458 084 1 584 353 842 450


61


WATERFALL MASTER PLAN

60


Roll-out period 2019 2018

Year m² % m² %

Waterfall City

LP 10 Waterfall City (Retail, residential, office and hotel) 1-16 559 901 59.0 559 763 58.5

LP 10A Corporate City (Office) 16-20 150 000 15.8 150 000 15.7

LP 10B Corporate Campus (Office) 2-3 6 282 0.7 6 609 0.7

LP 12 Capital City (Office) 20-21 48 330 5.1 48 330 5.1

LP 21 Landmark Park (Office) 10 13 321 1.4 13 321 1.4

Sub total 777 834 82.0 778 023 81.4

Waterfall Logistics Hub

LP 8 Distribution Campus (Industrial) 9-10 24 905 2.6 32 938 3.2

LP 9 Logistics Precinct (Industrial) 1-7 128 365 13.5 128 365 13.4

LP 22 Commercial District (Industrial) 8 17 682 1.9 17 682 1.8

Sub total 170 952 18.0 178 985 18.6

Total remaining bulk 948 786 100.0 957 008 100.0

Attacq Sanlam joint venture (Industrial and retail) 686 054 686 054

Total remaining bulk including Attacq Sanlam joint venture 1 634 840 1 643 062

WATERFALL BULK


NOTES

62


DISCLAIMER

This presentation and any materials distributed in connection with this presentation may include certain forward-looking statements beliefs or opinions including statements with respect to the company’s business financial condition and results of operations. These statements which contain the words “anticipate” “believe” “intend” “estimate” “expect” “forecast” and words of similar meaning reflect the directors’ beliefs and expectations and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these statements and forecasts. Past performance of the company cannot be relied on as a guide to future performance. Forward-looking statements speak only as at the date of this presentation and the company expressly disclaims any obligations or undertaking to release any update of or revisions to any forward-looking statements in this presentation. No statement in this presentation is intended to be a profit forecast. As a result you are cautioned not to place any undue reliance on such forward-looking statements.

This document speaks as of the date hereof. No reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness accuracy or fairness. This information is still in draft form and has not been legally verified. The financial information included herein is in draft form and unaudited. The company its advisers and each of their respective members directors officers and employees are under no obligation to update or keep current the information contained in this presentation to correct any inaccuracies which may become apparent or to publicly announce the result of any revision to the statements made herein except where they would be required to do so under applicable law and any opinions expressed in them are subject to change without notice. No representation or warranty express or implied is given by the company or any of its subsidiary undertakings or affiliates or directors officers or any other person as to the fairness accuracy or completeness of the information or opinions contained in this presentation and no liability whatsoever for any loss howsoever arising from any use of this presentation or its contents otherwise arising in connection therewith is accepted by any such person in relation to such information.

Independent non-executive directorsP Tredoux (Chairman)HR El Haimer (Lead independent)MM du ToitIN MkhariBT NagleS Shaw-TaylorJHP van der Merwe

Executive directorsM Hamman (CEO)R Nana (CFO)JR van Niekerk (COO)

Interim Company secretaryPL de Villiers (CIO)

Attacq Limited (Incorporated in the Republic of South Africa)(Registration number 1997/000543/06)JSE share code: ATTISIN: ZAE000177218(Approved as a REIT by the JSE)(Attacq or company or group)

Registered officeATT House, 2nd FloorMaxwell Office Park37 Magwa CrescentWaterfall City2090

Postal addressPostNet suite 016Private Bag X81Halfway House1685

Transfer secretariesComputershare Investor Services Proprietary LimitedRosebank Towers, 15 Biermann Avenue, Rosebank, 2196(PO Box 61051, Marshalltown, 2107)

SponsorJava Capital

Company contact detailsHead of Investor Relations Head of MarketingBI Botha MPP PatelLandline number: 087 845 1112 Landline number: 087 845 [email protected] [email protected]

ATT House, 2nd Floor, Maxwell Office Park, 37 Magwa Crescent, Waterfall City, 2090

+27 87 845 1136 | +27 10 549 1050 | [email protected]

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