c r e at i n g the future of r...

C r e a t i n g

t h e f u t u r e o f

r e t a i l K l É P i e r r e , r e t a i l o n l Y ®

2 0 1 7

R E T A I L O N L Y ® 2 0 1 7K L É P I E R R E

E D I T O R I A L

J E A N - M A R C J E S T I N Chairman of the executive Board

“our company has a wealth of irreplaceable real estate assets , leading customer brands and, above al l ,

passionate employees focused on innovation . together with retai lers , we of fer our customers more experiences ,

commitment and renewed pleasure , for a loyalty that is truly connected to the new paradigms of retai l .”

“Retail is engaged in the fast transformation of both digital and consumption patterns. This transformation is radical and, in order to best serve it, stores are reinventing themselves to be the place where the physical and digital link between the brand and the customer takes shape. Stores are, par excellence, the place where the customer promise is expressed and brand loyalty is built. They are becoming more and more surprizing. They offer a wealth of new services.

Klépierre has stepped up the pace of its own transformation in order to support retailers as they modernize their stores. It has developed an unri-valled platform of leading shopping centers located in continental Europe’s most dynamic catchment areas. This geographically diversified portfolio is the result of a particularly active policy of asset rotation and balance sheet optimization with the additional goal of reducing our level of debt.

Our teams continue to work hard to ensure that the future of retail happens in our centers. And because our business is long-term in nature, we look far ahead so that we can anticipate societal changes and integrate the specificities of the regions and communities that welcome us.

In other words, we are committed daily and over the long term to create ever more value for our shareholders, our retailers and their customers, and our employees.”

C O N T E N T S

P R O F I L E

With a presence in 57 metropolitan areas and 16 countries, and privileged access to 150 million consumers, Klépierre is Continental Europe’s shopping center real estate specialist.

As of December 31, 2016, the valu- ation of its property portfolio amounts to 23 billion euros. Klépierre provides leading retailers with a unique shopping center platform that draws more than 1.1 billion visitors each year.

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On the cover and chapters' openingsPhotographs by photographer, artistic director, and influencer Olivier Morisse, who was given carte blanche by Klépierre to come up with a reinterpretation of the brand’s iconic monogram “K”. Through a series of photographs taken at Les Passages in Boulogne and Emporia in Malmö, Sweden, among other places, the artist offers a formal and architectural re-reading.

instagram.com/oliviermorisse

Our ambition: strengthen our leadership

And you, how do you see the future? Combine short-term performance and long-term visionPursue a responsible growth policyAccelerate our centers’ modernization

Our driving force: foster fast-growing brands

And you, how do you see the future? Design media-like shopping centers for retailersA customer experience that forges new usesInnovative and high-quality services

Our requirement: a trade-focused design

And you, how do you see the future?Portfolio

Our commitment: create sustainable shopping centers

And you, how do you see the future? Committed to reducing the environmental footprintReconcile fulfillment and individual excellenceA powerhouse in local development

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K L É P I E R R E 01r e t a i l o n l Y ® 2 0 1 7

E D I T O R I A L


“our company has a wealth of irreplaceable real estate assets , leading customer brands and, above al l ,

passionate employees focused on innovation . together with retai lers , we of fer our customers more experiences ,

commitment and renewed pleasure , for a loyalty that is truly connected to the new paradigms of retai l .”

“Retail is engaged in the fast transformation of both digital and consumption patterns. This transformation is radical and, in order to best serve it, stores are reinventing themselves to be the place where the physical and digital link between the brand and the customer takes shape. Stores are, par excellence, the place where the customer promise is expressed and brand loyalty is built. They are becoming more and more surprizing. They offer a wealth of new services.

Klépierre has stepped up the pace of its own transformation in order to support retailers as they modernize their stores. It has developed an unri-valled platform of leading shopping centers located in continental Europe’s most dynamic catchment areas. This geographically diversified portfolio is the result of a particularly active policy of asset rotation and balance sheet optimization with the additional goal of reducing our level of debt.

Our teams continue to work hard to ensure that the future of retail happens in our centers. And because our business is long-term in nature, we look far ahead so that we can anticipate societal changes and integrate the specificities of the regions and communities that welcome us.

In other words, we are committed daily and over the long term to create ever more value for our shareholders, our retailers and their customers, and our employees.”

v

01. France - Belgium 45 shopping centers, 39%

02. Italy 36 shopping centers, 16%

03. Scandinavia 19 shopping centers, 18%

04. Iberia 20 shopping centers, 8%

05. Central Europe and Turkey 26 shopping centers, 8%

06. The Netherlands 5 shopping centers, 5%

07. Germany 5 shopping centers, 5%

%, portfolio value

R E T A I L A D A P T A T I O N I S H A P P E N I N G I N O U R C E N T E R S

€23 billionValue of portfolio (total share, excluding transfer duties) as of 12/31/2016

€ 1,300 millionRevenues total share

100Number of leading centers in their catchment area in Continental Europe

4,651Number of retailers in the portfolio

K E Y F I G U R E S

G E O G R A P H I C B R E A K D O W N O F T H E S H O P P I N G C E N T E R P O R T F O L I O

L E A D I N G C E N T E R S I N C O N T I N E N T A L E U R O P E

01. Créteil Soleil Greater Paris area, France

02. Val d’Europe Greater Paris area, France

03. St.Lazare Paris Paris, France

04. Prado Marseille, France

05. Blagnac Toulouse, France

06. Rives d’Arcins Bordeaux, France

07. L’esplanade Greater Brussels area, Belgium

08. Porta di Roma Rome, Italy

09. Le Gru Torino, Italy

10. Campania Naples, Italy

11. Field’s Copenhagen, Denmark

12. Bruun’s Galleri Aarhus, Denmark

13. Emporia Malmö, Sweden

14. La Gavia Madrid, Spain

15. Plenilunio Madrid, Spain

16. Nový Smíchov Prague, Czech Republic

17. Hoog Catharijne Utrecht, The Netherlands

18. Boulevard Berlin Berlin, Germany

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K L é p I E R R E , T H E S H O p p I N G C E N T E R p U R E p L A Y E R I N E U R O p E

S E L E C T I V I T YE - S E R V I C E S

E M O T I O N

R I G H T S I z E

T R A N S F O R M AT I O N O F K L E P I E R R E C E N T E R S

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R E T A I L O N L Y ® 2 0 1 7K L É P I E R R E 0302

O U R A m b I T I O N : S T R E N G T H E N

O U R L E A D E R S H I pt h r o u g h d a i l Y C o n t a C t w i t h t h e B e s t

i n t e r n a t i o n a l B r a n d s , K l É P i e r r e i s i d e a l l Y P o s i t i o n e d t o d e C i P h e r n e w C o n s u m e r

t r e n d s a n d a C C o m P a n Y B r a n d s i n t h e i r t r a n s f o r m a t i o n . a n d t h a t ’ s h o w ,

d a Y a f t e r d a Y , K l É P i e r r e i s r e d r a w i n g t h e n e w f r o n t i e r s o f r e t a i l .

find the interview online at: brochure2017.klepierre.com

o u r a m B i t i o n

J E A N - M A R C J E S T I NChairman of the executive Board

“Klépierre is playing a leading role in the revolution observed in today ’s retai l . we do it by creating

centers that are ever more convenient , surprizing and connected, where the most attractive brands

compete through innovation .”

J E A N - M I C H E L G A U L Tdeputy Ceo

“our group demonstrates on a daily basis its abil ity to support retai lers and create the ideal

conditions for their transformation . together, we are writing a new page in retai l , where the word

‘retai l ’ rhymes with leisure and pleasure .”



( lef t )

J E A N - M I C H E L G A U L Tdeputy Ceo

(right)

What will the store of tomorrow look like?The transformation is already well under way! Stores are becoming the ultimate venue of experience. They are a unique point of contact because they are the place where the experience of the product, the brand and the services takes place. This in turn forces them to take on the major challenge of constantly reinventing themselves because, beyond the products they sell, stores are meant to forge a real and lasting link with shoppers to secure their performance over time.

Our observation is that retailers have a tremendous ability to rebound and adapt. We see it every day. The best, those that develop top-performing digital strategies, intensify their investments in their stores because their profitability remains in the points of sale. They evolve along with consumers, who inquire and buy on the internet, come to the store to collect their items, and complete their purchases. Physical commerce and digital form a virtuous circle, with the store as the highlight of a customer experience that now begins online.

While the trend among some brands is to reduce the density of their distribution network, they prefer qualitative shops. Our centers, because of their location and their modernity, offer a response to this new situation, where winning the customer entails an experience enhanced in store and more customized and less commercial CRM.

What does Klépierre bring to the challenge of supporting this evolution of retail? Our critical size allows us to enjoy unique exposure with our retailers and remain flexible in order to imagine the future of their stores with them. We maintain an ongoing dialogue so that we can offer them assets of the highest level of quality, and this is something we can do thanks to the power of our platform in the heart of the most dynamic regions of continental Europe.

Our priority is to ensure that our centers have their very latest store concept so that their brand promise is kept. This is essential because we represent “the last meter” between the brand and the customer. Our strength lies in our ability to allocate the right format for the retailer in the right place and in the shortest possible time frame.

Our ability to constantly innovate is essential in a universe where everything evolves quickly and constantly. This capacity translates into a richer, more immersive, more digital and more playful experience. Our shopping centers become places of “retailtainment”, where the notions of retail and leisure merge.

Our innovation is not only digital, architectural and event-driven, it is also responsible. We constantly seek to understand the new frontiers in terms of economic, societal and social responsibility. And this commitment did not begin today, as our relevant ratings attest.

J . - M . J E S T I N

J . - M . G A U L T

J . - M . J E S T I N

J . - M . J E S T I N

J . - M . J E S T I N

J . - M . G A U L T

J . - M . G A U L T

A N D Y O U , H O W D O Y O U S E E

T H E f U T U R E ? A R E T A I L P u R E P L A y E R , K L é P I E R R E

O f f E R S R E T A I L E R S A u n I q u E A u D I E n C E I n E u R O P E A S T h E S E C T O R E x P E R I E n C E S

A n I n T E n S E R E v O L u T I O n .


R E T A I L O N L Y ® 2 0 1 7K L É P I E R R E 0706 a m B i t i o n s

Seeing clearTo deliver its results, Klépierre relies on its expertise, the key to its operational excellence in the day-to-day management of its centers. This excellence is the outcome of multiple local adjustments and synergies at the Group level. Thanks to their in-depth knowledge of each center and the environment in which it operates, teams constantly optimize the relevance of the retail offer and the attractiveness of brands by supporting retailers in their development, streamlining the customer experience, pooling procurement, and optimizing energy consumption.

Seeing farReinventing its offer to adapt to the new requirements of its customers: this is the essence of Klépierre’s business. It requires dynamic asset management, the result of targeted disposals of non-strategic assets, renovation-extension

€ 3 . 3 b i l l i o n total amount

of investment projects

€ 2 3 b i l l i o n Value of real

estate assets as of december 31 , 2016

C O m b I N E S H O R T - T E R m p E R f O R m A N C E

A N D L O N G - T E R m V I S I O N

B y C O M B I n I n G O P E R A T I O n A L E x C E L L E n C E A n D A C T I v E M A n A G E M E n T

O f I T S P R O P E R T y P O R T f O L I O , K L é P I E R R E G u A R A n T E E S

S u S T A I n A B L E P E R f O R M A n C E .

“thanks to their in-depth knowledge of each center

and the environment in which it operates ,

Klépierre ’s teams constantly optimize

the relevance of the retai l of fer and the appeal

of the retai lers .”

P R A D O marsei l le (france)

operations, targeted acquisitions and, in some areas, exnihilo creations such as the Prado center in Marseille. It also requires both long-term vision, in a sector where antici-pation is key, and the ability to make the right decisions at the right time.

Securing the future financially robust, Klépierre can count on the continuous improvement of its financial profile to achieve its ambitions. This foundation gives it privileged access to the capital markets and therefore the resources needed to invest in modernizing its centers and deploying an attractive merchandising mix that is adapted to the local expectations of consumers. Klépierre’s strategy is to replace its short maturity loans with longer maturities at lower cost to enhance its financial performance.

T H E B E S T B R A N D S H A V E C H O S E N K L é P I E R R E

Zara , h & m, uniqlo, Primark , l’oréal , Bestsel ler, m .a .C, sephora . . . the world ’s greatest brand in

their respective sectors have taken up residence in Klépierre centers . these leading retailers are investing massively in the modernization and refurbishment of their stores in a bid to astonish and win their customers over long term.


p U R S U E A R E S p O N S I b L E G R O W T H

p O L I C YK L é P I E R R E R u n S A L O n G - T E R M B u S I n E S S .

T h I S A P P L I E S E q u A L L y T O T h E v A L u A T I O n O f I T S P R O P E R T y P O R T f O L I O A n D T O T h E D E v E L O P M E n T

O f T h E R E G I O n S I n W h I C h I T O P E R A T E S .

Everyone’s business for growth to be sustainable and beneficial to the greatest number, it must be responsible. This means sharing good practices, creating value, and ensuring the well-being of employees. Employee satisfaction, the involvement of management, and healthy emulation between teams condition the quality and sustainability of this growth. Supported by the Group, shopping centers are equipped with tools to measure and compare their performances, for example in the area of energy consumption, efficiency, and savings.

A winning approach Klépierre is a pioneer in its industry when it comes to its approach to CSR. Ambitious and operational, the Good Choices® program is widely recognized. In 2016, Klépierre was the second best real estate company in Europe according to the Global Real Estate Sustainability Benchmark (GRESB) and the top business worldwide for its environmental initiatives according to RobecoSAM. More than two-thirds of its property portfolio in terms of value are currently BREEAM or ISO 14001 certified in 13 countries. The approach is being deployed with 20 quantified targets for 2020, calling for solutions that are high performance, innovative and exemplary.

motivated teamsA demanding profession, retail is both a short- and long-term business. Achieving operational excellence on a daily basis and offering quality real estate assets require nothing less than an unfailing commitment and a vision shared by all. These are the prerequisites for sustainable growth. Through its unique exposure to the retail sector, Klépierre brings together talent from 16 countries. Employees are passionate about their profession and fully committed.

Inventing what’s next To revolutionize tomorrow’s retail, Klépierre promotes sharing ideas, the test-and-learn concept, and open innovation. This approach is evidenced by its digital platform KLéPIERRE ID, launched with Microsoft and dedicated to supporting the start-up companies that will revolutionize retail tomorrow. Start-up companies that develop projects designed to improve communication between brands, increase drive-to-store, imagine new phygital services, get to know visitors better, and make their experience more fluid. To create value for both retailers and Klépierre.

E M P O R I A malmö (sweden)

P A S S A G E S greater Paris area (france)

C A M P A N I A naples ( italy)

L ’ E S P L A N A D E greater Brussels area (Belgium)

O D Y S S E U M montpel l ier (france)



1 5 0 m i l l i o n number of consumers located

near i ts shopping centers

1 0 0 number of leading shopping centers

in 16 countries

A C C E L E R A T E O U R C E N T E R S ’

m O D E R N I Z A T I O NT h E f u T u R E O f T h E C E n T E R S

I S B E I n G W R I T T E n I n C O n j u n C T I O n W I T h B R A n D S T h A T W A n T T O I n v E S T

I n u P G R A D I n G T h E I R I n - S T O R E E x P E R I E n C E .

A platform aligned with retailer demandKlépierre selects real estate assets in the most dynamic areas of Europe in demographic and economic terms. Present in the largest cities in 16 European countries, its shopping centers offer brands the best exposure in Western Europe. True regional or interregional hubs, they offer access to more than 150 million consumers who want to experience fluid and memorable shopping experiences. They have invented a new form of retail, one that is neither purely e-commerce nor all in-store, but rather “all connec-ted.” for the customer, the promise is unique, whether digital or physical.

Rallying our customers to modernize centersIn close consultation with retailers, Klépierre is constantly modernizing its centers to offer unique moments to its visi-tors. Klépierre centers are the meeting places par excellence between brands and consumers. They host exclusive store concepts and brands that have embraced the digital transfor-mation. The strength of the Group lies in its ability to support them throughout their evolution by proposing, as rapidly as possible, the best site and the most relevant stores for every retailer in which to deploy their concepts. for the maximum retail performance, a customer promise kept, and brand loyalty strengthened.

Revealing retail personalityKlépierre works closely with each of its retailers to ensure that the format and design of each store is an accurate expression of their positioning. The store, a place of retail experience, is also a place for service and interaction that extends the retailer’s digital platform. here, brands invest to showcase their latest store concepts and create a permanent element of surprise. for a re-energized relationship.

E M P O R I A , N E W G E N E R A T I O N S H O P P I N G

At the crossroads of Scandinavian shopping located in the heart of the Øresund region, just five minutes from malmö and twenty-five minutes from Copenhagen, emporia reigns over a leading region of europe with a population of 3.6 million inhabitants and boasting strong demographic growth. every day, 25,000 shoppers visit its stores, restaurants, cafés, and ViP services.

Resolutely modern architectureConceived by the great swedish architect gert wingrdh, the building has a powerful attractiveness: its frontage curves at each entrance, like a huge wave, and opens up into two imposing esplanades. this new center attracts the most dynamic brands.

A balanced and varied retail mixspread out on three levels and a patio, emporia offers a specific positioning at each level, with a complete, modern and unique commercial offer.

P O R T A D I R O M A rome (italy)



t h r o u g h o u t t h e Y e a r , K l É P i e r r e o f f e r s a s t e a d Y

s t r e a m o f a n i m a t i o n a n d s u r P r i s e s a t i t s s h o P P i n g C e n t e r s t h a t

m a K e t h e m u n i q u e P l a C e s . w i t h i t s l e t ’ s P l a Y ® a n d C l u B s t o r e ®

C o n C e P t s , K l É P i e r r e e n s u r e s t h a t e a C h V i s i t i s a n

u n f o r g e t t a B l e e x P e r i e n C e .

O U R D R I V I N G f O R C E : f O S T E R f A S T -

G R O W I N G b R A N D S

o u r d r i V i n g f o r C e


B E Ñ A T O R T E G A group Chief

operating of f icer

“retail is becoming experiential . this has resulted in

store concepts changing at a faster pace and the development

of a phygital experience.”

L A U R E N C E W E Y D E R T Chief operating of f icer,

sweden

“ with a development pipeline whose investment value

is €3 .3 bi l l ion , Klépierre invests in some of the most dynamic cities in europe.”


L A U R E N C E W E Y D E R T Chief operating of f icer,

sweden

B E Ñ A T O R T E G A group Chief

operating of f icer


How does Klépierre decipher retail developments?Shopping is a social activity that has evolved a lot. from an individual act limited to a transaction, today it expresses membership in a community of individuals and evokes a more global experience. yesterday, we sought above all to own and we were satisfied with a standard product. Today, we share the goods and we are in search of customization.

Moreover, the act of purchase is no longer confined to a given place and time. It stretches out over time, from amassing information on the internet to the experience one seeks out in the store. All of these evolutions show that the relational and emotional dimensions now predominate in the purchasing experience. These are the expectations that our centers address today.

What is Klépierre’s role in this context?Our leadership in Europe is measured not only by the number of centers we own or the number of leases contracted with retailers. But also by our capacity to anticipate changes in consumer patterns, and to support and stimulate our retai-lers. This relational dimension, which Beñat mentioned, is also fueled by technology.

Digital also allows us to communicate about the news and current events at our centers and throughout the eco-system in which they are embedded. This is a valuable tool for getting to know our visitors better so we can offer them personalized services that improve and streamline their mall experience. In this way, technology contributes to the quality of our retail offer and the customer experience.


T H E f U T U R E ?D A y A f T E R D A y ,

I n T h E L A R G E S T C I T I E S O f E u R O P E , T h E f u T u R E O f R E T A I L I S W R I T T E n

I n T h E K L é P I E R R E C E n T E R S .

B . O R T E G A

B . O R T E G A

L . W E Y D E R T

L . W E Y D E R T


D E S I G N m E D I A - L I K E S H O p p I N G C E N T E R S

f O R R E T A I L E R S K L é P I E R R E S h O P P I n G C E n T E R S

A R E R E T A I L S h O W C A S E S T h A T O f f E R E v E R y O P P O R T u n I T y f O R B R A n D S T O S T A G E

T h E I R A T T R I B u T E S .

When brands are on displayIn shopping malls, the real stars are the retail brands on offer. Klépierre encourages retailers and helps them encounter the three million visitors who frequent its centers daily. Pop-up spaces are made available for targeted operations. To reveal products and strengthen the retailer’s relationship with customers, Klépierre organizes road shows and deploys exclusive, high-quality pop-up stores, like nespresso, where visitors are immersed in and interact with the brand’s universe.

The right format, the latest conceptWith the rise of e-commerce, the store has become the cornerstone of a multichannel shopping experience. Collect a product purchased online, test an item, have a unique shopping experience: the motives of the shopper are multiple. And so are those of the retailer. Some retailers, with jumbo stores located on the outskirts of cities, now set up compact stores in malls. Others prefer a more qualitative network of larger stores. Still others open their own outlets to regain control of the relationship with their customers. Retail is in constant motion and Klépierre responds to each move with the right solution.

€ 3 1 8 m i l l i o n investments committed in 2016

by retai lers for their stores in our shopping centers





A C U S T O m E R E x p E R I E N C E

T H A T f O R G E S N E W U S E S

S h O P P I n G C E n T E R S W h E R E P E O P L E G O T O h A v E f u n , E n R I C h T h E I R

S O C I A L L I f E , M E E T f R I E n D S , A n D D I S C O v E R T h E L A T E S T n O v E L T I E S .

A F E S T I V A L F O R E P I C U R E A N S A N D H I P S T E R S

Passages in Boulogne- Bi l lancourt hosted the let ’s Play® festival in september 2016 . on the program: surprizing animations and and fashion , food and l i festyle discoveries . shoppers got the chance to meet such exciting creatures as noir gaazol and fleurette Paquerette , as well as get their beards trimmed by the famous barber Big moustache, play more than 500 video games on an arcade console , and practice yoga or swedish gymnastics . an array of avant-garde and eclectic events inspired by the latest trends .

P A S S A G E S greater Paris area

(france)

C R é T E I L S O L E I L greater Paris area

(france)

make shopping a gameTo enhance their appeal, shopping centers must return to their vocation as a marketplace. With the Let’s Play® concept, Klépierre transforms shopping into genuine entertainment that is in a constant state of renewal in the form of a promenade punctuated with fun parentheses, designed to appeal to all sorts of shoppers. Exclusive shows, happenings, giant casting calls, games with prizes, creative workshops, offbeat communications… Let’s Play® adds a touch of emotion to the shopping experience, and a “retailtainment” dimension characterized by an inventive approach that encourages shoppers to write their own rules of the game.

from screen to window dressingWith retail taking a digital turn, the shopping experience becomes more personalized, experiential and immersive. The digital dimension is reinventing the relationship between brands and shoppers, while initiating an open-ended conversation via social networks. The smartphone creates an augmented and tailored reality shopping experience, offering innovative, targeted and interactive content and services. The iBeacon technology, which allows shoppers to figure out where they are in the shopping center, can be used to locate all the products they have preselected using the Klépierre mobile app offered by the various partnering retailers in the mall.


20

Clubstore® is more than a concept, it’s a signatureCreate exclusive shopping centers that win customers over by providing memorable moments of emotion: this is Klépierre’s ambition with its Clubstore® program. Designed for the cus-tomer, Clubstore® gives centers that extra soul that makes the shopping experience unforgettable and unique. Clubstore® centers feature surprising custom-designed spaces that make visitors want to linger and return. A musical escalator, trompe- l’œil walls, a lounge, comfy furniture, a free library and reading room, and all sorts of surprises in every corner… Each center offers a customer experience that reflects its personality. Launched at Passages in Boulogne-Billancourt and at jaude in Clermont-ferrand, Clubstore® will eventually be installed at every center. It has already been rolled out at Meridiano (Tenerife) and Porta di Roma (Rome).

places where shopping is fun Restaurants, cafés, cinemas... Klépierre centers offer eve-ryone the opportunity to enjoy friendly moments and fun with friends or family. for each sector, Klépierre attracts the best brands and the most innovative concepts. The catering offer, a factor that drives traffic, receives particular attention. At val d’Europe, the fully renovated food court hosts the restaurants Exki and factory & Co and two exclusive concepts: Indiana Café and Big fernand. At St.Lazare, the largest Burger King in france wins accolades from grilled-burger fans, while the Lazare run by the renowned chef of the Bristol hotel offers high-quality comfort food at reasonable prices. In Madrid, The Good Burger chain offers burger breaks to shoppers at the Principe Pio. In Copenhagen, new brands such as LOfT (an exclusive gourmet restaurant) and Dalle valle (a large restau-rant and bar) are increasingly popular with visitors at field’s shopping center.

I N N O V A T I V E A N D H I G H q U A L I T Y

S E R V I C E ST h E n O n - S T O P u P G R A D E O f I T S R E T A I L O f f E R I n G A T T E S T S T O K L é P I E R R E ’ S C A P A C I T y T O R E I n v E S T

I n I T S C E n T E R S T O W I n O v E R R E T A I L E R S A n D T h E I R C u S T O M E R S .

2 0 1 3 launching of

the Clubstore® concept

9 5 % ratio of customers who

love Clubstore®

P O R T A D I R O M A : A R E G I O N A L R E T A I L P O W E R H O U S E

at the heart of rome, Porta di roma is aptly named. indeed, i t is italy ’s largest shopping center and one of europe’s most modern . no fewer than 240 retai lers are on of fer, including fnac , Zara , Coin , media world , h&m, decathlon and apple , not to mention an auchan hypermarket and 14 movie theaters to please shoppers .



O U R R E q U I R E m E N T : A R E T A I L

f O C U S E D D E S I G Nt h e i n t e g r a t i o n o f t h e s h o P P i n g

C e n t e r i n t o t h e u r B a n s P a C e , t h e e a s e o f a C C e s s a n d n a V i g a t i o n ,

a n d t h e C l a r i t Y o f t h e r e t a i l o f f e r f o r s h o P P e r s a r e C l o s e l Y t i e d t o t h e q u a l i t Y

o f e a C h C e n t e r ’ s d e s i g n .

o u r r e q u i r e m e n t

L O U I S B O N E L L I group head of leasing

“as a structuring element of any region , the shopping center is as important as transport

infrastructure and public faci l ities . through design , older sites can reclaim their geographic

and human territories .”

“design, too of ten reduced to its esthetic dimension , nevertheless has a very functional role .

it faci l itates the ‘readabil ity ’ of the retai l mix and gives it its rhythm. it reveals the attention paid

to customers throughout their experience.”

D A N I E L A L A U R E Tgroup head of architecture ,

mal l Conception & design

R E T A I L O N L Y ® 2 0 1 7K L É P I E R R E24 25

D A N I E L A L A U R E Tgroup head of architecture ,

mal l Conception & design

L O U I S B O N E L L I group head of leasing


T H E f U T U R E ?D E S I G n I S n O T j u S T A B O u T E S T h E T I C S .

I T E n h A n C E S T h E v A L u E O f T h E R E G I O n W h E R E T h E C E n T E R I S L O C A T E D A n D P u T S

O u R f O C u S O n T h E C L I E n T .

What role does design play in leasing?As the act of purchasing becomes increasingly dematerialized, stores are redesigning in order to offer authentic experiences to their customers. Design is a big factor and represents a genuine vector for creating customer flow and traffic. for shopping centers too, while the esthetic function remains key, it is not just design, whose aim is to give each center a unique personality that generates attachment and preference in visitors. In the design of our centers, our goal is to showcase brands and pace the customer experience, making the pro-ducts and services offered easy to read and fun.

Design truly is the essential glue. Starting from the design of the center, it helps to shape the customer expe-rience and the retail configuration... More importantly, and because the stakes are much higher than mere distribu-tion, the shopping center now has to magnify and enhance the value of brands. It also and above all has to create the conditions that will allow them to innovate. This is why we are constantly dialoguing with our retailers and pushing them to offer the best of themselves to our shared customer.

D . L A U R E T

L . B O N E L L I



5 8 number of retai lers

6 m i l l i o n number of v is itors

2 3 , 1 6 5 s q . m . gross leasable area (gla)

C R é T E I L S O L E I L Greater Par is area

(france)

P A S S A G E S Greater Par is area

(france)

Located in the most dynamic regions of Continental Europe, the Klépierre centers are designed

to accompany the major trends and the evolution of the brands . The digitization of purchases involving

considering points of contact with renewed attention, design is put at the service of commerce

to enhance the of fer and make it more readable , consolidate the identity of brands and strengthen

their relationship with their customers .

p O R T f O L I O

2 3 0 number of retai lers

2 0 . 6 m i l l i o n number of v is itors

1 2 3 , 5 1 6 s q . m . gla


P O R T A D I R O M A Rome (Ita ly)

P O R T A D I R O M A Rome (Ita ly)

C A M P A N I A naples ( I ta ly)


P O R T A D I R O M A



7 2 , 4 7 8 s q . m . gla



9 2 , 2 1 8 s q . m . gla


E M P O R I A Malmö (Sweden)

F I E L D ’ S Copenhagen (Denmark)


7 . 8 m i l l i o n number of v is itors

7 9 , 3 0 0 s q . m . gla


6 . 7 m i l l i o n number of v is itors

7 7 , 7 0 0 s q . m . gla


K L É P I E R R E32 33

L A G A V I A Madrid (Spain)

L A G A V I A Madrid (Spain)


1 2 m i l l i o n number of v is itors

7 1 , 0 4 3 s q . m . gla

1 1 0 , 0 0 0 s q . m . gla

O D Y S S E U M Montpel l ier (france)

O D Y S S E U M Montpel l ier (france)


r e t a i l o n l Y ® 2 0 1 7K l É P i e r r e 3534 e n g a g e m e n t s

O U R C O m m I T m E N T : C R E A T E S U S T A I N A b L E

S H O p p I N G C E N T E R ST H E B A C K B O N E O F K L É P I E R R E ’ S

C O M M I T M E N T , T H E G O O D C H O I C E S ® A P P R O A C H F U E L S E V E R Y A S P E C T O F T H E B U S I N E S S .

W I T H T H E C H A L L E N G E S C L E A R L Y I D E N T I F I E D A N D Q U A N T I F I E D O B J E C T I V E S T O G U I D E

T H E W A Y F O R W A R D A N D M E A S U R E T H E P R O G R E S S M A D E D A Y T O D A Y B Y E A C H

A N D E V E R Y S H O P P I N G C E N T E R .

“The shopping center plays a key role in l ife and in regional planning and

development . A source of wealth, it creates social ties and offers entertainment .”

J U L I E N G O U B A U L TChief Communications

Off icer

C L é M E N T I N E P A C I T T ISustainable Development

Senior Manager

“Each center is actively engaged in the process of reducing its carbon

footprint . This process also takes into account the activity of the center ’s

suppliers and the transportation choices of its visitors .”




T H E f U T U R E ?B e i n g a l e a d e r C o n f e r s r e s P o n s i B i l i t i e s .

i t a l s o o f f e r s t h e P o s s i B i l i t Y o f P u s h i n g t h e e n V e l o P e . K l É P i e r r e e m B r a C e s B o t h

t h i s r o l e a n d t h i s o P P o r t u n i t Y .

Why is a long-term approach to retail necessary today?Retail is often misunderstood as a short-term business due to the daily pressure to perform. In fact, the retail sector is one where cultural barriers to innovation persist among many traditional players. Many of them wonder what the point is of imagining products and services that the customer has not asked for yet. As a leader, we see our role as anticipating new uses and new constraints and getting the major brands on board with us.

We are anchored both to the present—that is the demand for operational excellence—and to the very long term—meaning the duty of responsibility. On the one hand, because we manage real estate assets that are long term and whose value will increasingly depend on their environmental performance, and on the other, because we are constantly anticipating lifestyle shifts and consumer practices, in particular those that are linked to technological innovation.

What does this mean in concrete terms? Thinking about retail long term means questioning the meaning of our business and its impact. In terms of dynamics for the region, connection to the transportation grid and integration into the urban setting, but also the environmental footprint.

A shopping center is not an island that lives in autarky. This is why we trade ideas with all of the stakeholders who animate the regions, from local elected representatives, with whom we work to envision the improvement of transportation infrastructures to facilitate access, to the head of the local nonprofit organizations we provide with space for their initiatives. This dialogue also extends to the retailers in, and visitors to our shopping centers, in order to better understand their expectations and increase their satisfaction.

o u r C o m m i t m e n t36

J . G O U B A U L T J . G O U B A U L T

C . P A C I T T I

C . P A C I T T I

J U L I E N G O U B A U L TChief Communications

Off icer

C L é M E N T I N E P A C I T T ISustainable Development

Senior Manager

r e t a i l o n l Y ® 2 0 1 7K l É P i e r r e 39

C O m m I T T E D T O R E D U C I N G

T H E E N V I R O N m E N T A L f O O T p R I N T

K l É P i e r r e a C t s t o l i m i t t h e i m P a C t o f i t s a C t i V i t i e s o n t h e e n V i r o n m e n t

a n d t o C r e a t e V a l u e t h r o u g h s u s t a i n a B l e d e V e l o P m e n t .

38

A strategic commitment The Group takes every aspect of sustainable development into account, considering them to offer a genuine reflection of its performance over the long term. The Good Choices® program, which structures its action in this area, is based first and foremost on the search for operational excellence for each asset.

priority given to reducing the carbon footprint The carbon footprint issue is a key priority for Klépierre and includes the impacts of its retailers and suppliers in

this approach. Accordingly, most of its shopping centers are located at the heart of major multi-modal public transit hubs.

A winning approach Klépierre focuses particular attention on precisely measuring its energy consumption, achieving energy sobriety, improving technical facilities, and making targeted investments in its buildings. Two thirds of its real estate holdings are BREEAM or ISO 14001 certified. The Group is also considered by RobecoSAM as the world’s top real estate company in terms of environmental performance.

L E M I L L é N A I R E Greater Paris area

(France)


- 2 5% Ratio of reduction

in kWh/visit between 2013 and 2020

7 5% Ratio of electricity from

renewable sources in 2020

o u r C o m m i t m e n t

K l É P i e r r e r e t a i l o n l Y ® 2 0 1 7 41

R E C O N C I L E f U L f I L L m E N T

A N D I N D I V I D U A L E x C E L L E N C E

B e C a u s e t h e f u t u r e o f r e t a i l i s l i n K e d t o t h e f u t u r e o f t h e w o m e n a n d m e n w h o a r e w r i t i n g i t , K l É P i e r r e

e n C o u r a g e s t h e d e V e l o P m e n t o f K n o w l e d g e a n d t h e s h a r i n g

o f a C o m m o n C u l t u r e .

40

promoting diversity and mixTo better meet customer expectations, Klépierre encourages recruiting employees who live in the employment areas where its centers are located and integrating local demographic diversity. The Group also strives to ensure equality between women and men at all levels: in hiring, pay, and promotion.

Reinforcing employee engagement Because the level of employee engagement is a factor in operational excellence and collective performance, Klépierre strives to measure this indicator regularly through in-house surveys. To encourage engagement and enhance the work experience, the Group implements targeted actions, educates its teams on strategy, seeks to empower everyone in their work, and is strengthening middle management.

Developing talentsDeveloping talents and skills is a key to collective performance and dynamism. The heart and soul of the Group’s continuous education offering, Klépierre university is where employees meet, share good practices, and transmit the corporate culture. Its strength comes largely from the commitment of the in-house experts who together form an international network of instructors. To prepare for the future, Klépierre regularly updates its course offering and is stepping up digital development to train teams in new retail businesses and facilitate access to knowledge. Training is also a driver of geographic and functional mobility and a source of motivation and skills development.

O D Y S S E U M Montpell ier (France)

K L é P I E R R E H E A D Q U A R T E R S Paris (France)

1 , 3 0 0 Number of employees

2 . 5 Number of days

of training a year per employee

o u r C o m m i t m e n t K l É P i e r r e

R E T A I L O N L Y ® 2 0 1 7K L É P I E R R ER U B R I C A G E 4342 K l É P i e r r e 4342

Centers that drive local economies In terms of their size, attractiveness and the diversity of their retail mix, shopping centers shape local urban life, providing a guarantee of high-quality comfort, safety and cleanliness. They also help to create and sustain lively public spaces and boost local employment, whether direc-tly or indirectly.

Centers that forge ties Designed to serve as retail and social spaces, Klépierre’s shopping centers provide a setting for daily life, leisure, culture, and entertainment. In a high-speed digital world, they respond to the human need to meet face to face and recreate physical communities. They also serve as conduits of communication, expression, and solidarity. Each center is

involved in the life of its local community, offering material or financial support for citizen initiatives.

Centers that make life easier Leaders in their catchment area, shopping centers par-ticipate in the quality of the daily lives of local inhabitants. Thanks to the diversity of their retail and service offering, they

provide a range of solutions that combine efficiency, comfort, and convenience. Accessible to the vast majority via public transit, they are developing soft or alternative modes of trans-portation as well as parking facilities for bicycles and electric cars. Making its shopping centers accessible to people with mobility limitations is also a priority for the Group.

o u r C o m m i t m e n t r e t a i l o n l Y ® 2 0 1 7

A p O W E R H O U S E I N L O C A L

D E V E L O p m E N T i n t h e 1 6 e u r o P e a n C o u n t r i e s w h e r e

K l É P i e r r e i s P r e s e n t , i t s s h o P P i n g C e n t e r s P l a Y a d r i V i n g r o l e i n l o C a l

C o m m u n i t i e s a n d e C o n o m i e s .

7 4 , 0 0 0 Number of jobs

generated by the activity of Group-owned centers

4 1 % Ratio of customers who use

mass public transit or soft modes of transportation to access

Group shopping centers (+3pp since 2013)

P A S S A G E S Greater Paris area

(France)

L E M I L L é N A I R E Greater Paris area

(France)

44 l e a r n m o r e a B o u t u s

You are a shareholder, an investor, an analyst find all the information, f inancial press releases , results , stock prices , legal information. . . and your contacts at Klépierre here: klepierre.com/en/finance/

You are a retail brand, a marketing manager, a retail professional Extend your reading and discover news and events at our centers . A unique vir tual tour that spans Europe and the world of pure play shopping malls : klepierre.com/en/retail/ To contact one of our sales representatives: klepierre.com/en/property

You are a seasoned professional or a recent grad The Career Space invites you to discover our ambitions and our values , the high-powered business careers you aspire to, and the excellence of our Klépierre university training center. Log in now: klepierre.com/en/careers/

C O L O P H O N

K L é P I E R R E

Design & production

M&C SAATChI Little Stories www.mcslittlestories.com

Iconography

Alfred Cromback / Picture Tank Michel Labelle Olivier Morisse

Typography

Calibre designed by Klim Type foundry

paper

CoverMultiDesign Smooth White 350 g/m2

Inside MultiDesign Smooth White 170 g/m2

photogravure

Point 11

printing

Manufacture d’histoire Deux-PontsMarch 2017

26 boulevard des Capucines CS 20062 75 009 Paris – france Telephone: + 33 (0)1 40 67 57 40 A french corporation governed by an executive board and a supervisory board with registered share capital of 440,098,488.20 euros 780 152 914 RCS Paris www.klepierre.com

44 l e a r n m o r e a B o u t u s

You are a shareholder, an investor, an analyst find all the information, f inancial press releases , results , stock prices , legal information. . . and your contacts at Klépierre here: klepierre.com/en/finance/

You are a retail brand, a marketing manager, a retail professional Extend your reading and discover news and events at our centers . A unique vir tual tour that spans Europe and the world of pure play shopping malls : klepierre.com/en/retail/ To contact one of our sales representatives: klepierre.com/en/property

You are a seasoned professional or a recent grad The Career Space invites you to discover our ambitions and our values , the high-powered business careers you aspire to, and the excellence of our Klépierre university training center. Log in now: klepierre.com/en/careers/

a collection of images was produced in collaboration with photographer alfred Cromback of the Picture tank agency.taken in the leading centers of the Klépierre portfolio throughout europe, they are meant to bring out the friendly and warm atmosphere of the shoppers’ favorite centers, the innovative spirit of their brands and the modernity of their architecture.

alfredcromback.com

E M P O R I A Malmö (Sweden)

C A M P A N I A Naples (Italy)

P O R T A D I R O M A Rome (Italy)


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