#1المراكز العربية Arabian Centres The Leading Lifestyle Centre Platform in Saudi Arabia Investor Presentation FY 2019 (year ended 31 March 2019) June 2019#2Contents 03 ACC at a Glance 06 Key Investment Highlights 15 Financial and Operational Performance 24 Growth Strategy 30 Appendix#3Leading Developer, Owner and Operator of Shopping Malls Across Saudi Arabia 19 Malls FY2019 Headline Figures* 14% Market Share 1.1 mn sqm GLA 93.4% Occupancy² 109 mn Footfall Successful IPO Arabian Centres Company (ACC) is the leading developer, owner and operator of shopping malls across Saudi Arabia, with a portfolio of 19 malls. ACC's malls are spread across key urban areas throughout the Kingdom, including the top 10 cities covering 60% of the population and with a 14% (1) market share by year-end FY2018. ACC operates some of the most iconic malls in the Kingdom, including Mall of Arabia (Jeddah)and Mall of Dhahran, two of the Company's landmark Super-Regional Malls, and Nakheel Mall (Riyadh). Its malls are home to more than 1,000 international, regional and local retail brands, including Zara, Debenhams, Coach, H&M, Virgin Megastores, Panda and IKEA. ACC seeks to continuously enhance its overall tenant mix, which includes dining, entertainment, lifestyle and leisure offerings, in order to attract footfall and maximize returns on its mall portfolio. Successfully completed IPO on the Saudi Stock Exchange (Tadawul) in May 2019 at a price of SAR 26 per share, implying a market capitalization on admission of SAR 12.4 billion. Revenue EBITDA FFO³ Net Profit R 2,176.4 mn SAR 1,480.7 mn SAR 1,086.3mr SAR 804.1 mn ▲ 0.7% y-o-y LFL ▲ 4.7% y-o-y ▲ 1.0% y-o-y ▲ 2.3% y-o-y 0.7% y-o-y * For the year ended 31 March 2019 - ACC's fiscal year for 2019 (FY2019) ends on 31 March 2019 (1) Source: JLL Market Study (2018) (2) Represents the year-end occupancy (3) Fund from operations: net profit for the year plus depreciation of investment properties and PP&E and write-off of investment properties, if applicable. Arabian Centres Company. Investor Presentation NAV SAR 17,941.0 mn ▲ 2.0% y-o-y 3#415+ Years Track Record Achieving Leadership Position Through Sustained Growth GLA Growth FY2002 - FY2024f (000s sqm) No. of malls 12 15 17 Footfall (mn) 15 75 19 19 19 23 27 4 Malls in 4 Malls 88 92 96 109 109 Development +1 Extension +1 Extension Revenue (SAR bn) 1.4 1.6 1.9 2.1 2.2 2.2 1,700 1,400 1.6 million sqm in prime land bank to develop future pipeline 1,070 1,075 1,086 965 888 790 BUA of 381,281 sqm Mall Of Dhahran BUA of 65,800 sqm Al Ahsa Mall BUA of 212,825 sqm Salaam Mall Salaam Mall BUA of 28,364 sqm Sahara Plaza Aziz Mall BUA of 130,029 sqm Jubail Mall Jouri Mall 2002 2004 2005 2008 2010 2011 2012 2014 2015 2016 BUA of 109,215 sqm BUA of 341,765 sqm Nakheel Plaza Mall of Arabia Khurais Mall Al Noor Mall Arabian Centres Company. Investor Presentation BUA of 106,881 sqm Makkah Mall Haifa Mall BUA of 166,670 sqm Al Nakheel Mall Salma Mall Tala Mall BUA of 179,641 sqm Yasmeen Mall Hamra Mall 4#5(1) 3 Super Regional Malls GLA ≥ 74,000 sqm 10 Regional Malls Our Assets are Diversified and Strategically Located across Saudi Arabia 37,000 sqm < GLA < 74,000 sqm 6 Community Malls GLA < 37,000 sqm Our Malls As of FY19, or the 12-month period ended 31 March 2019 Arabian Centres Company. Investor Presentation 37% Revenue Contribution (1) 54% Revenue Contribution (1) ACC's malls are located in major cities across Saudi Arabia and are anchored by the company's strategic partnerships with major retailers and other tenants. 4,100 stores 1,100 brands 720 customers FY19 Geographical Distribution | GLA FY19 Brand Split by Origin | No. of brands Central 28% 50% Eastern 62% 22% Western Local 38% International FY19 Distribution by Category | GLA FY19 Distribution by Store (GLA) 1% Retail 6% 11 % 9% ■Grocery Revenue 14% Entertainment Contribution (1) 68 % F&B Others 21% Line Stores 41% Anchors 38% ■Junior Anchors 5#6The Leading Lifestyle Centre Platform in Saudi Arabia Arabian Centres Company. Investor Presentation 1 Attractive industry backdrop driven by favorable local demographic and lifestyle trends 2 Largest retail platform in Saudi Arabia with leading positions across key metropolitan areas 3 Strong mall development business with superior returns 4 Fully integrated retail ecosystem 5 Experienced management team with clear roadmap to growth 6 Best-in-Class Corporate Governance Framework 6#7Gersik Attractive Industry Backdrop Driven by Favorable Local Demographic and Lifestyle Trends (I/II) Favorable Macro-economic Drivers Favorable Demographic & Lifestyle Trends PATROON Strong Population Growth Steadily Increasing A Young Population Workforce c.1.8% in 2017 52% <30 yrs in 2018 c.3% in 2019 (f) Cultural predisposition towards shopping as a key leisure activity as well as for family outings Strong gift-giving culture Saudi Arabia³ Hot climate supports a high level of demand for indoor, air-conditioned mall environments as a leisure destination Saudi Arabia's modern retail market remains largely underpenetrated with long-term growth prospects 2017A Market Share of GCC Retail Sales 2018A Retail Mall GLA per capita (sqm) (1) UAE 8.6% Qatar Kuwait 1.0% Oman 0.5% Bahrain 0.3% 23.8% 65.9% Dubai 1.2 Saudi Arabia is the largest retail market in the GCC, almost double the size of the retail market in the UAE and is expected to grow by Abu Dhabi 1.1 International 1.1 Benchmark(2) Oman 0.6 Saudi 0.4 Arabia CAGR of 5% between 2019 and 2021 Kuwait 0.3 Bahrain 0.1 Low organized retail supply relative to the GCC and international markets creates significant untapped potential for quality modern retail spaces Source: Oxford Economics, JLL Market Study, Middle East Council of Shopping Centres (2018), International Council of Shopping Centres Retail mall GLA includes shopping centres / malls and quality strip malls but excludes independent standalone stores. (2) As identified by the International Council of Shopping Centres. (3) For only the four major cities i.e. Riyadh, Makkah, Jeddah and DMA 1) Arabian Centres Company • Investor Presentation 7#8Attractive Industry Backdrop Driven by Favorable Local Demographic and Lifestyle Trends (II/II) Retail market is recovering following two years of slowdown, with significant upside driven by the Vision 2030 reforms Store-based Sales 2 Non-Grocery Sales Trough Growth Growth 110 116 69 105 104 103 105 64 99 61 89 60 60 60 11.7% 10.7% 7.2% 5.9% 5.9% 4.3% 2.1% (0.6)% (1.0)% 6.9% 5.3% 2.4% (0.1)% 2014A 2015A 2016A 2017A 2018A 2019E 2020E 2021E 2016A (1.0)% 2017A 2018A 2019E Store Based Sales (US$bn) -O-Growth Non Grocery Sales (US$bn) 2020E -O-Growth 2021E Enriching Quality of Life Women Enablement Key Focus Areas of Vision 2030 Reforms Promote Saudi Arabia's entertainment industry Enhance Saudi Arabian cities' positioning among top cities Expected Impacts for Retail / ACC Entertainment / leisure including cinemas as incremental footfall generators Recapture retail spending outside of the Kingdom Government drive to increase women mobility Increase the participation of women in the workforce from 22% to 30% by 2030 → 7% increase per year in discretionary spend (1) Enablement of large part of target catchment Boost in total purchasing power Boosting Tourism Focus on tapping the country's underdeveloped tourism industry Foster more balanced and sustainable demand Increase the Umrah visitors from 8 million to 30 million per year by 2030 Infrastructure Improve public transportation infrastructure / connectivity Upcoming ~US$426 billion infrastructure plan Increasing domestic and international tourist flows in Saudi Arabia Improved accessibility / mobility leading to higher footfall Source: Vison 2030, Jadwa Investment, Centre for International Communication, Euromonitor 2018, Saudi Railways Organization, Bloomberg, JLL Market Study, IMF Notes: 1. Additional 770k working women calculated as 8% (30% minus 22%) of current women population in Saudi Arabia between 15-64 years of age. US$2.6bn discretionary spend calculated as 38% of the total disposable income of additional working women Notes: 2 Store-based Sales/Source: JLL Market Study, Euromonitor 2018, IMF Arabian Centres Company • Investor Presentation 8#9Largest Retail Platform in Saudi Arabia with Leading Positions Across Key Metropolitan Areas Diversified portfolio strategically positioned in large catchment areas Key Saudi Arabian Cities Retail Mall Market Share by GLA as of 2018 (1) Ahsa Mall Jubail Mall Nakheel Plaza Salma Mall Noor Mall Makkah Mall Jouri Mall Other Cities Top 4 Cities Ha'il O Qassim Madinah Jeddah Makkah Taif Jubail DMA Hofuf Riyadh (1) Source: JLL Market Study (2018), Company information - Based on 4 key cities (Riyadh, Jeddah, DMA and Makkah) and only including organized retail space (>3,000 sqm) Arabian Centres Company. Investor Presentation DMA 17% Market share Mall of Dhahran Sahara Plaza Riyadh 11% Market share Salaam Mall Tala Mall Khurais Mall Nakheel Mall Hamra Mall Jeddah 28% Market share • Aziz Mall Mall of Arabia Haifa Mall Salaam Mall Yasmin Mall 9#10Strong Mall Development Business with Superior Returns High Mall Development Capabilities and Expertise Through its partnership with FARE (member of Fawaz Alhokair & Partners Co.), ACC has successfully developed 16 Malls (with the exception of Tala Mall in Riyadh, Salaam Mall in Jeddah and Salma Mall in Hail). ACC has demonstrated its ability to accurately assess changing market requirements which are important for identifying and securing attractive sites for its Malls. Strong Pre-leasing Model ACC has been able to pre-lease approximately 50% of its recent new malls 3-6 months ahead of their launch 75% 93% 70% 50% Superior Returns (YTC) < 5% 1-3 Years Av. deviation Average total delivery time From scheduled budget Favorable Lease Terms 3-4 Yrs 5-6 Yrs Av. Implied payback Av. Implied payback ~5% Escalation Clause for Line Stores 30% Leasehold 18% ~90%+ With Variable Rent Clause Freehold 3-6 months Pre-launch First Year Occupancy Current Occupancy 3-5 Years Typical Tenure for KSA Line Stores YTC - FY2018 Actual EBITDA (Net of lease expense for leasehold) divided by Total Development Cost (including land for freehold) where Total Development Cost defined as the capital expenditure incurred and the land cost Arabian Centres Company. Investor Presentation 10#11Fully Integrated Retail Ecosystem Fashion Alhokair Fashion Retail ALHOKAIR Fashion Retail أزياء التحرتة GAP Estradivarius 75+ BRANDS Food & Beverage Leisure & Entertainment ديل الصباح الريش بسيمة الفعاليات الثقافية Food & Entertainment Company (1) F Food & Entertainment Member at Fawaz Alhokair Grap FAS Entertainment (2) KIDZ SPACE CULTURAL ACTIVITIES 20+ BRANDS H CINNABON ZARA Bershka NY AS M ESTEE LAUDER rola wala SEATTLE'S BEST Massimo Dutti ALDO lefties MANGO Life with CACAO Molten Chocolate Cafe Kidzania SKINNYPIZZA Caffé Concerto Large and Attractive Retail Portfolio (1) Includes Food & Entertainment Co., Food Gate Company Commercial, and Coffee Centres (2) Trading Includes Billy Games Company Co, Kids Space Company and Next Generation Company Limited Arabian Centres Company • Investor Presentation 95+ BRANDS 3 BRANDS 11#12Experienced Management Team with Clear Roadmap to Growth Salman Abdulaziz Fahad Alhokair Vice Chairman Managing Director Responsible for overseeing the day-to-day activities of the Company and directing its management team on its shareholders' behalf. He is also a founding member of Alhokair Fashion Retail. Olivier Nougarou Chief Executive Officer Over 15 years of senior executive experience in retail property (as CEO for Germany at Unibail-Rodamco-Westfield) and Morgan Stanley Real Estate. Dr. Lionel Ponsard VP of Finance 20+ years of experience in financial management and operations including Faisaliah Group and Boston Consulting Group. Ghassan Abu Mutair Chief Development & Project Management Officer Previously held position of Manager of the Supply Chain Group at Fawaz Abdulaziz Alhokair Real Estate Company. He also served in other operations positions at General Electric and the Saudi Binladin Group. Khalid Al Dubaihi VP of Leasing Previously served as Director of ACC Media Sales and prior to that was Chief of the Heavy Household Department at Geant Saudi Limited, an LLC established in Saudi Arabia operating in the Trade sector. Majed Al Juaid VP of Operations Held several positions across ACC and its sister company, Alhokair Fashion Retail mall, for 16 years, and now serves as the Company's VP of Operations since September 2013. Rayan Al-Karawi Group Head of Investor Relations Over 20 years of experience in investor relations and finance at companies including Zain KSA and Dar Al Arkan. He is a founding member and Chairman of the Saudi Chapter of the Middle East Investor Relations Association. Bruno Wehbe Chief Strategy & Portfolio Management Officer Over 12 years of experience in consulting, most recently at Strategy & managing the real estate practice in the region. Jabri Maali Chief Financial Officer 25+ years of experience in finance held several executive roles including Finance Manager of Planet Group and External Audit Supervisor at BDO. Naji Fayad Director of Internal Audit Department He has over 20 years of experience in audit related functions and holds several academic degrees and professional qualifications including a Chartered Accountant (CA) degree and a Certified Internal Auditor. Turki Al Zahrani Chief Support Services Officer Serving as Chief Support Services Officer since 2015 after joining company in 2009 as Director of Human Resources. He previously held management positions at Geant Saudi Limited and Al Othaim Holding Company. Francois Kanaan Chief Digital and Marketing Officer 25 years of experience in corporate marketing. His background includes corporate communications, digital transformation, brand development and destinations marketing. Arabian Centres Company. Investor Presentation 12#13Best-in-Class Corporate Governance Framework (I/II) 4 Non-Independent BOARD COMPOSITION 4 Fawaz Abdulaziz Alhokair Chairman Co-founder of Al Hokair Group Chairman of the board of FAS Saudi Holding Company Salman Abdulaziz Alhokair Vice Chairman and MD Co-founder of Al Hokair Group Director on the board of FAS Saudi Holding Company 1 Independent Vacancy Kamel Al Qalam Omar Almohammady¹ Consultant to Fawaz Abdulaziz Al Hokair Real Estate Company Group CEO at Fawaz Alhokair Group Mohamed Al Khorayef CEO of Al Khorayef Group Omar Al Farisi¹ Managing member at Diyala Advisors LLC Member of the board of the Savola Group Bernard Higgins Honorary professor at Edinburgh Business School Previously CEO of retail banking at Royal Bank of Scotland Abdulrahman Al Tuwaijri Previously chairman of Capital Market Authority (CMA) in KSA Independent Arabian Centres Company. Investor Presentation Independent Independent Independent Image placeholder VACANT (1) Appointed on 26 May 2019 13#14Best-in-Class Corporate Governance Framework (II/II) [J Regulatory Requirements Additional Protective Measures ACC is Committed to Maintaining the Highest Standard of Corporate Governance Key Documents Company Management Audit Committee Board of Directors General Assembly (GA) Corporate Governance Manual None Required to supervise and review related party dealings Independent members must comprise more than a third of the Board or 3 directors GA to approve related party transactions; conflicted shareholders to abstain from voting Related Party Transaction Policy (RPTP) Framework Agreements RPTP requires management to conduct review of related party relationships on a quarterly basis and present report to Audit Committee Framework Agreements lay down key parameters to assist management in its dealings with key related parties Determines need for new Framework Agreements ✓ Reviews management report on related party dealings ✓ Provides recommendations to the board, including on compliance with Framework Agreements ✓ 4 of the 8 currently appointed directors are independent ✓ Review Audit Committee report on related party transactions and provide recommendations to GA Scope of RPTS which require GA approval Arabian Centres Company. Investor Presentation 14#15Financial & Operational Performance#16ACC Continued to Deliver on it Growth Strategies in FY2019 Unlocking new value from existing portfolio Return to LFL Revenue Growth Optimized Capital Structure & Completed IPO Continued expansion of mall portfolio to solidify market position ACC's recent re-measurements resulted in an increase in GLA of approximately 28k sqm, which will be reflected in lease renewals over the next 2-3 years. ACC achieved like-for-like net rental revenue growth of 0.7% in FY2019, the first positive LFL growth witnessed since FY2016. New SAR 7.2 billion Islamic facility with favorable terms was secured in the beginning of 1Q2019 (April 2018). Three new malls are currently under construction, which will bring the total number of malls to 22 by the end of 2019. Year-to-date, ACC has onboarded a total of 82 new brands, which include Dior, Smashbox, Delfy, Hakkasan and Nandos, among other lucrative brands. Developing a new digital platform which will allow customers to reserve/purchase items online for store pick up. The platform is currently in its trial stage, with brands already signed on. Growth was driven by Implementation of a yield and space optimization strategy, with new value unlocked from the portfolio offsetting temporary setbacks from the termination of weak performers. ACC recorded a 94.3% LFL occupancy rate as of March 2019 with c.90% renewal rate amid an improving macro environment. IPO proceeds will allow the company to deliver on its growth strategy, specifically its ambitious expansion plans to develop 8 assets and 2 extensions within the next five years. Ongoing extension of Nakheel Mall (Riyadh), with phase 1 expected to be completed year-end 2019. Acquisition of the 30-year lease for Jeddah Park, a key milestone in the delivery of ACC's near-term growth strategy and poised to add c.128k sqm of GLA upon completion in FY2020. Arabian Centres Company. Investor Presentation 16#17Strong Leasing Activity with Positive Spreads and High Occupancy Rates GLA Progression vs. Average Footfall Occupancy Rates vs. WALT GLA (sqm 000s) Footfall (mn) WALT (years) LFL Occupancy (%) 109 109 96 1,070 1,075 1,086 Total GLA increased 1% y-o-y to 1.086 million sqm, while average footfall remained stable at 109 million visitors. Year-End Occupancy (%) Year-end occupancy across all malls increased to 93.4% as 94.3% 90.8% 92.6% 93.4% 5.4 5.2 4.9 of FY2019, while like- for-like occupancy rate improved two percentage points to 94.3%. FY17 FY18 FY19 FY17 FY18 FY19 Number of Leases Renewed The Company renewed Revenue by Tenant Type Leases Renewed 1,577 1,408 a total of 1,183 leases, with a positive releasing spread and c.90% of leases expiring in calendar year 2019 External Tenants (SAR mn) Internal Tenants (SAR mn) 2,144 2,161 2,176 1,183 already renewed. The average rental rate per 1,652 1,680 1,695 square meter increased to SAR 1,985 in FY2019 from SAR 1,961 in FY2018. 492 481 481 FY17 FY18 FY19 FY17 FY18 FY19 Arabian Centres Company. Investor Presentation ACC maintained a good tenant mix, with internal tenants constituting c.22% of net rental revenue. 17 17#18Return to LFL Total Revenue Growth Revenue | SAR MN ■Net Rental Revenue Media Sales Utilities & Other 2,161 2,176 2,123 139 135 119 66 61 52 1,952 1,961 1,975 FY17 FY18 FY19 Total revenue for the year was SAR 2,176.4 million in FY2019, up 0.7% y-o-y driven by management's yield and space optimization strategies that unlocked new value from its operating assets, and offsetting temporary setbacks from the termination of weak performers. Khurais Mall 3% Salaam Mall 9% Others 25% Haifa Mall 3% Noor Mall 6% Revenue by Mall Mall of Dhahran 16% Mall of Arabia 13% Salam Mall 3% The Mall of Dhahran was the largest contributor to revenues in FY2019 at 16%, following by Mall of Arabia (13%) and Nakheel and Salaam malls each contributing 9%. Makkah Mall 7% Aziz Mall 7% Nakheel Mall 9% Revenue by Type O Like-for-Like Total Revenue Growth 8.6% 5.9% -2.2% -6.7% 0.7% On a like-for-like basis, total revenue was up 0.7%% y-o-y in FY2019 driven by management's yield and space optimization strategies as well as an improvement in like- for-like occupancy rates, which recorded 94.3% compared to 92.0% in FY2018. Utilities & Other Revenue 6% Media Sales 3% FY15 FY16 FY17 FY18 FY19 Arabian Centres Company. Investor Presentation Rental Revenue 91% ACC derives the lion's share of its revenues from net rental revenue, which constituted 91% in FY2019. ACC is working toward yield optimization on the GLA as well as increasing contributions from non-GLA activities as one of its key growth avenues. 18#19Robust Profitability with Improving EBITDA Margin EBITDA | SAR MN FFO | SAR MN (1) Net Income | SAR MN 66.9% 68.0% 65.4% 59.3% 1,434 1,481 1,414 49.8% 49.9% 1,272 44.7% 1,075 1,086 36.4% 959 786 36.9% 804 FY17 FY18 FY19 FY17 EBITDA Margin FY18 FFO Margin FY19 FY17 FY18 FY19 Net Income Margin Improved EBITDA was driven by higher revenue along with efficiency and cost-control initiatives, including renegotiating third-party contracts for direct services such as cleaning, security and outsourced manpower. Additionally, ACC booked lower accounts receivables impairment due to a change in provisioning policy (implementing an Expected Credit Loss model in line with IFRS 9), as well as management's efforts to improve the company's collection process. FFO was up 1.0% y-o-y in FY2019 to SAR 1,086 million compared to SAR 1,075 million in the previous year. FFO margin was 49.9%, up 0.1 percentage points compared to the 49.8% recorded in FY2018. Net income for the year recorded a 2.3% y-o-y increase in FY2019 to SAR 804.1 million, yielding a 0.5 percentage-point improvement in net income margin to 36.9% compared to the previous year. Improved bottom-line profitability came despite increased finance charges, which were partially offset by a SAR 75.1 million reversal of a Zakat provision during the year. 1) Fund from operations: net profit for the year plus depreciation of investment properties and PP&E and write-off of investment properties, if applicable. Arabian Centres Company. Investor Presentation 19#20Continued Investment in Near- and Medium-Term Pipeline Capex Overview - Near-Term Pipeline SARbn Capex Overview - Medium-Term Pipeline SARbn 1.8 1.8 6.6 6.6 0.3 1.3 0.5 1.5 Capex Cost Split Total Land Cost Capex Status Total Construction Cost Total Capex Incurred Remaining Capex (FY2020) 3.2 3.8 2.8 3.4 Capex Cost Split Total Land Cost Total Construction Cost Capex Status Total Capex Incurred Remaining Capex Total Capex for Near-Term pipeline including land cost for Nakheel Mall-Dammam and Khaleej Mall is c.SAR1.8bn Of the total capex, c.SAR 0.3 bn is targeted to be spent in FY2020 Total Capex for Medium-Term pipeline including land cost for Mall of Arabia, Riyadh and Jawharat Jeddah is c.SAR 6.6bn (land cost of SAR2.8bn already incurred) Of the total capex, c.SAR 3.2bn is targeted to be spent from FY2020 onwards Arabian Centres Company. Investor Presentation 20#21Property Portfolio & Land Bank Values Property Portfolio independently valued by Jones Lang LaSalle at SAR20.4Bn and Land Bank of SAR3.4Bn Value of Assets as of Mar 2019 (SAR bn)(1) 9.9 6.4 .9 4.1 Khaleej Mall Nakheel Dammam Mall University Boulevard Jeddah Park Mall (1) 3.4 20.4 4 land plots Prime land bank to develop future pipeline 23.9 Freehold Assets Leasehold Assets Assets Under Construction Total Land Bank at Cost Gross Appraisal Value Source: Investment properties valuation from JLL as of 31st March 2019 1) Jeddah Park Mall valuation as of 11-Mar-2019 and expected to be delivered in 1st half FY2021 2) Implied Cap Rate is calculated as (Income from Main Operations/(Market Capitalization + Outstanding Debt) Arabian Centres Company • Investor Presentation EV / GAV 0.78 Implied Cap Rate² 0.06 21 11#22Optimized Capital Structure New SAR 7.2 billion Islamic facility secured in April 2018 Net Debt as of 31 March 18 | SAR mn (73) (119) 7,205 (272) 6,741 (458) 6,283 Long maturity profile Low cost of funding 6-month 10-year termm SIBOR+2.5% Sufficient Liquidity SAR 305 mn undrawn Islamic facility Undrawn total value amount Loan amortization Settled amount Total Financial Debt Cash 10-Year Amortization Schedule IPO Proceeds Net Financial Debt 31 Mar 19 LTV(1) Net Debt EBITDA Debt to Equity 32% 4.2x 1.3x 7,205 272 500 511 622 684 707 741 779 826 879 Ample covenant headroom 684 Facility FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 Deleveraging from IPO primary proceeds to be reflected in 1Q FY2020² 1) LTV calculated as net financial debt divided by the sum of the value of investment properties per JLL and land bank book value as of 31-Mar-2019 including Jeddah Park. 2) SAR 780 million from IPO primary component to be used in debt repayment through a SAR 500 million early repayment to accelerate maturity by one year, in addition to SAR 280 million to be utilized in accordance with the repayment schedule. Arabian Centres Company. Investor Presentation 222 22#23Financing Strategy Allowing for Pipeline Funding and Attractive Dividend Policy Funding for Growth Management expects to raise debt financing over the next 5 years as the company repays its existing facility Land for the near and medium term pipeline already paid Remaining capex to be funded with debt (focusing on non- amortising debt and/or project finance) Notes: Near-Term and Medium-Term Capex Funding (SARbn) 6.6 1.8 0.3 1.5 3.2 3.4 IPO Primary Proceeds IPO primary component of SAR 780 to be used for debt repayment 4.2 x Deleveraging post IPO Dividend Policy SAR 850-900m FY2020 dividend closer to 70% of Recurring FFO SAR 925-975m FY2021 anticipated dividend c.22-26% CAGR until FY2024 Dividends to grow in line with FFO growth 3.8 x Min 60% of FFO Dividend Policy Near-Term Pipeline Medium-Term Pipeline Leverage (2) PF Leverage (2) Semi-annual Capex Incurred (1) Remaining Capex First dividend targeted for H1 FY2020, payment in cash 1. For near term pipeline refers to cost incurred till 31-March 2019 including land is c.SAR1.1bn. 2. Leverage calculated as Net Debt/EBITDA (pre-IFRS16). PF Leverage based on SAR 780 million primary proceeds to be used for debt repayment for outstanding balances as of 31 March 2019. EBITDA of SAR 1,480 million as of 31 March 2019 (IFRS). Arabian Centres Company. Investor Presentation 23#24Growth Strategy#25ACC's Growth Initiatives Key Pillars of ACC's Growth Strategy A Unlock Significant Value from Operating Portfolio B Offer Integrated Lifestyle Experiences C Targeted Growth Strategy to Solidify Leadership Position UNLOCK VALUE Improve F&B and Leisure offer and Attract SIAP Fashionable Brands Yield Food & Beverage 1 Management 2 3 Space Optimisation Non-GLA Revenue Opportunity (s) Cost 4 Optimization Arabian Centres Company. Investor Presentation 00000 Cinema Unique Entertainment 4 Already in Construction (to be operational in 2019) with 4 openings expected per year Digitization Digitization Malls Currently Under Construction ~659K New GLA Potential from Pipeline Projects + ~60% of Existing Portfolio Launch 1st Digital Retail Platform in Saudi Arabia 4+1 Near-term Pipeline (includes Jeddah Park) Smartphone Social Media App Tenant Portal APP Digital Footfall Counters Loyalty Program 4+1 Controlled Medium-term Pipeline 15-20% Target Yield on Cost 25#26Target High Single Digit Like-for-Like Growth from Existing Assets Through Systematic Data-Driven Asset Management Active Asset Management Initiatives to Deliver Attractive LfL Growth on Existing Perimeter Average Annual Growth Over FY2020-2022E 2 Yield Management Initiatives GLA Initiatives 3 Non-GLA Initiatives 0.5% Variable pricing (turnover rent) c.1% 0.5% c.1% c.1% c.2-4% - 4 6-8% guidance excludes: Cinemas Space Optimization O Variable Rent 6-8% Indexation Occupancy Ramp-Up Discount Control Leasing Activity Space Optimization Media Sales Specialty OpEx Leasing Optimization Like-for-Like Growth Target Arabian Centres Company. Investor Presentation 26#27ACC Growth Trajectory: Illustrative FY2023 EBITDA Build-Up SAR MM 1,402¹ Near-term pipeline of 3 malls and 1 extension Target opening dates: University Boulevard & Dammam Airport Mall - September 2019 Nakheel Extension 1 - November 2019 Khaleej Mall - December 2019 • Targeted minimum c.70% occupancy at opening; expected ramp-up within 2-3 years • c. 430-480 Expected to start contributing to EBITDA from FY2021 c.SAR500m additional contribution once all assets (mainly Mall of Arabia, Riyadh and Jawharat Jeddah) are fully ramped-up Targeted minimum c.70% occupancy at opening and expected to ramp-up to 90% occupancy by FY2023 and stabilizing to 95% thereafter c. 650-700 c. 3,600 c. 235 c. 850 IFRS 16 Impact c. 600 LFL growth of existing portfolio from FY2018 to FY2023 • 6-8% p.a. combined with expected margin improvements, translates to c.SAR600m of incremental EBITDA • Medium-term pipeline of 4 malls and 1 extension • Target opening dates: - Najd Mall 1st half FY2021 Zahra Mall 1st half FY2022 Nakheel Extension (Phase II) - 1st half FY2022 Mall of Arabia, Riyadh - 1st half FY2023 Jawharat, Jeddah - 1st half FY2023 • Targeted minimum c.70% occupancy at opening; expected ramp-up within 2-3 years FY2018 LFL Growth of Existing Portfolio All financial years are ending 31 March - All data are post IFRS 16 (i.e. Pre-land lease cost) except FY2018 1 Based on SOCPA Arabian Centres Company. Investor Presentation Near-Term Pipeline Jeddah Park (Opening Apr-2020) Medium Term Pipeline FY2023 27#28Near-Term Pipeline Total c.301k sqm GLA Addition c.50% Pre-let as of January 2019 Location Ownership GLA (sqm) Jeddah Park University Boulevard Nakheel Dammam Mall Nakheel Extension 1 Khaleej Mall KHALEEJ Jeddah Riyadh Dammam Riyadh Riyadh Leasehold 128,740 Leasehold Freehold Leasehold Freehold c. 52,000 c. 53,000 c. 52,000+16,000 extension c. 51,000 Pre-lease Status 10% Pre-leasing process 75%+ (1) to be started 65% (1) 30% Starting April/May 2019 25% Starting April/May 2019 % Completion(2) Target Opening Date 62% April 2020 +500% Expected Yield on Cost(3) (cash payback < 1 year) 1) Based on heads of terms agreed with tenants 2) Based on billing as of 10-Apr-2019 3) 95% 80% September 2019 September 2019 15%-20% 20% 63% November 2019 December 2019 Expected Yield on Cost is derived on the basis of stabilized expected EBITDA (Net of lease expense for leasehold) divided by Total Development Cost (including land for freehold) where Total Development Cost defined as the capital expenditure incurred and the land cost Arabian Centres Company. Investor Presentation 28#29Thank You Contacts Investor Relations Department Email: [email protected] Tel: +966 (11) 825 2080#30Our Malls GLA (sqm) Company Revenue Contribution (%) Mall City Ownership Type Year Opened 31 Dec 18 31 Mar 19 BUA (sqm) FY17 FY18 FY19 Super-Regional Mall of Dhahran Dammam Leasehold 2005 160,647 160,695 220,550 17.30% 15.90% 15.80% Salam Mall Jeddah Leasehold 2012 121,363 121,333 212,825 9.50% 8.80% 8.60% Mall of Arabia Jeddah Freehold 2008 109,185 111,268 247,848 12.40% 12.80% 12.70% Regional Aziz Mal Jeddah Leasehold 2005 72,153 72,279 93,310 8.10% 7.20% 7.10% Noor Mall Madinah Freehold 2008 67,110 67,047 93,917 6.70% 6.10% 6.20% Nakheel Mall Riyadh Leasehold 2014 55,707 56,166 98,000 8.00% 7.80% 8.7% Yasmin Mall Jeddah Leasehold 2016 54,634 54,510 101,672 2.50% 5.90% 6.1% Hamra Mall Riyadh Freehold 2016 53,951 56,516 77,969 1.30% 5.00% 5.20% Ahsa Mall Hofuf Freehold 2010 51,979 53,117 65,800 2.90% 2.50% 2.40% Salaam Mall Riyadh Freehold 2005 49,926 50,043 67,421 3.50% 3.00% 3.20% Jouri Mall Taif Leasehold 2015 48,122 48,290 92,663 4.60% 4.70% 4.70% Khurais Mall Riyadh Leasehold 2004 41,372 41,618 60,230 3.20% 2.90% 2.60% Makkah Mall Makkah Freehold 2011 37,545 37,623 56,720 7.50% 7.10% 7.20% Community Nakheel Plaza Qassim Leasehold 2004 49,387 49,317 48,985 2.40% 1.90% 2.3% Haifa Mall Jeddah Leasehold 2011 32,946 32,881 50,161 4.40% 3.30% 3.00% Tala Mall Riyadh Leasehold 2014 22,711 22,835 46,292 2.10% 1.90% 1.80% Jubail Mall Jubail Freehold 2015 20,908 21,196 37,366 1.80% 1.80% 1.40% Salma Mall Hail Leasehold 2014 16,952 16,959 22,378 1.10% 0.90% 0.80% Sahara Plaza Riyadh Freehold 2002 12,223 12,217 28,364 0.40% 0.20% 0.00% Arabian Centres Company. Investor Presentation 30#31Income Statement Y-o-Y FY2018 FY2019 Growth IFRS IFRS 1,959,826,740 61,245,647 1,974,913,970 0.77% 66,027,217 7.81% 139,435,031 135,458,493 -2.85% 2,160,507,418 2,176,399,680 0.74% -527,034,783 -521,177,627 -1.11% -268,366,279 -256,916,024 -4.27% n/a 2.11% (SAR) Net Rental Revenue Media Sales Utilities Revenue Total Revenue Cost of revenue Depreciation of investment properties Write-off of investment properties GROSS PROFIT Gross Profit Margin Other income Other expense Impairment loss on accounts receivable Advertisement and promotion General and administration INCOME FROM MAIN OPERATIONS Share in net income of an associate Financial charges INCOME BEFORE ZAKAT Zakat 1,365,106,356 63.20% 1,104,802,422 9,650,928 NET INCOME FOR THE YEAR Profit for the year attributable to: Owners of the Company Non-controlling interests Earnings per share: Basic and diluted earnings per share EBITDA EBITDA Margin FFO FFO Margin Source: Company Audited Financials, Company Information Arabian Centres Company. Investor Presentation -4,397,441 1,393,908,588 63.20% 31,757,095 10,697,190 -66.32% -9,751,949 -6,821,779 -30.05% -94,814,498 -43,524,466 -54.10% -13,444,488 -5,642,340 -58.03% -174,050,094 -171,821,914 -1.28% 1,176,795,279 6.52% 11,569,399 19.88% -295,358,031 -439,540,747 48.82% 819,095,319 748,823,931 -8.58% -32,684,346 55,276,825 -269.12% 786,410,973 804,100,756 2.25% 774,568,050 11,842,923 786,410,973 789,599,943 14,500,813 804,100,756 1.74 1.77 1,413,642,992 1,480,688,650 4.7% 65.4% 68.0% 1,075,389,692 1,086,321,356 2.6 pts 1.0% 49.8% 49.9% 0.1 pts 31#32Cost Breakdown (SAR) Rental expense Utilities expense Security expense Cleaning expense Repairs and maintenance Employees' salaries and other benefits Cost of Revenue As % of Revenue Depreciation of Inv. Properties Employee salaries and benefits Communication Professional fees Insurance Government expenses Lease rent Maintenance Others G&A(1) Depreciation P&E Write-off of receivables Opex Total Cost (ex. Depreciation) As % of Revenue Depreciation (IP and PP&E) As % of Revenue Source: Company Audited Financials, Company Information Arabian Centres Company. Investor Presentation FY2018 FY2019 Y-o-Y IFRS IFRS Growth 191,281,762 224,498,516 17.37% 108,568,959 109,791,055 1.13% 84,765,413 56,082,002 -33.84% 74,896,503 56,899,719 -24.03% 39,780,122 43,171,770 8.53% 27,742,024 30,734,565 10.79% 527,034,783 521,177,627 -1.11% 24.39% 23.95% 268,366,279 256,916,024 94,067,765 66,132,681 -29.70% 11,808,676 12,889,776 9.16% 10,420,979 9,654,787 -7.35% 7,989,260 8,325,811 4.21% 6,681,815 28,654,751 328.85% 3,862,277 3,862,277 0.00% 382,312 6,451,387 194,867 6,699,016 -49.03% 3.84% 141,664,471 136,413,966 30,823,363 1,562,261 35,407,948 0 14.87% -100.00% 31.0% 30.2% -2.6 pts 13.8% 13.4% -0.4 pts 32 2#33Balance Sheet (SAR) Assets Cash and cash equivalents Accounts receivable Amounts due from related parties Advances to a contractor, related party Prepayments and other current assets Accrued revenue (rentals) Total Current Assets Amounts due from related parties Advances to a contractor, related party - non-current portion Prepaid rent - non-current portion Accrued revenue (rentals) - non-current portion Investment in an equity-accounted investee Other investments Investment properties Property and equipment Total Non-current Assets Liabilities Current portion of long-term loans Accounts payable Amounts due to related parties Unearned revenue Accrued lease rentals Accruals and other current liabilities Zakat payable Total Current Liabilities Long-term loans Accrued lease rentals - non-current portion Employees' end-of-service benefits Other non-current liabilities Total Non-current Liabilities Total Liabilities Total Equity FY2018 FY2019 IFRS IFRS 80,350,968 457,670,9831 246,733,176 299,245,146 238,579,401 567,558,035 274,507,859 499,595,478 119,091,960 96,244,969 32,984,696 30,191,211 992,248,060 1,950,505,822 200,322,570 80,692,116 105318598 48,517,542 65,969,394 60,382,421 39,669,322 42,238,721 128,476,217 108,708,763 10,781,869,500 136,827,578 11,482,344,239 10,983,848,465 114,773,889 11,415,270,857 433,000,000 501,875,532 276,725,098 217,760,402 221,619,546 22,499,022 277,252,240 305,506,061 11,301,470 11,480,894 162,539,755 326,082,270 82,457,716 146,559,970 1,528,998,079 5,395,029,126 560,359,883 30,338,170 1,467,661,897 6,239,159,152 515,366,044 31,744,170 54,914,387 6,040,641,566 7,569,639,645 4,904,952,654 12,474,592,299 47,085,296 6,833,354,662 8,301,016,559 5,064,760,120 Total Liabilities and Equity Source: Company Audited Financials, Company Information 13,365,776,679 (1) Does not reflect SAR 780 million from primary proceeds of ACC's IPO completed in May 2019 which are to be utilized in debt repayment through a SAR 500 million early repayment to accelerate maturity by one year, in addition to SAR 280 million to be utilized in accordance with the repayment schedule. Arabian Centres Company • Investor Presentation 33